BlackRock Latin American Investment Trust plc (LON:BRLA) two experienced managers, Ed Kuczma and Sam Vecht, remain positive on the outlook for Latin American equities, with Kuczma commenting that the region is ‘under-owned, undervalued and unloved’. He says that the year-to-date stock market rally in Latin America is a good example of how quickly investor sentiment can change, especially given the global environment of rising interest rates. Kuczma points to the move from growth to value stocks, commenting that the region ‘has a ton of value’.
To learn more about the BlackRock Latin American Investment Trust plc please follow this link: blackrock.com/uk/brla
Edison Investment Research Analyst Mel Jenner says
The Latin American stock market has had a very strong relative start to the year, led by Brazil, as investors have reassessed the region’s prospects. As at 28 February 2022, the MSCI Emerging Markets Latin America Index had appreciated by 13.6% year-to-date, while the MSCI World Index had declined by 6.8% (both in sterling terms). There is potential for this outperformance to continue, particularly in a rising interest rate environment, which traditionally favours value rather than growth stocks. The MSCI Emerging Markets Latin America Index is biased towards value sectors, with materials, financials and energy stocks representing c 60% of the total.