By Dalton Gardimam, Chief Economist, Ágora Investimentos
Why emerging markets and Latin America led 2025 equity performance, and what to expect going forward
The strong performance of Latin America and emerging markets in general in 2025 is surprising. The global economy remains constrained by (relatively) high real interest rates, geopolitical challenges (old and new) requiring a new approach to ...
The narrative presents a compelling case for Latin America’s 2025 equity outperformance, grounded in structural shifts rather than speculative hype. The strongest version of this argument highlights the repricing of undervalued assets, geopolitical commodity leverage, and nearshoring benefits—all plausible drivers. However, the analysis leans heavily on the "geopolitics of commodity supply" thesis, which, while intriguing, risks overemphasizing rare-earth reserves as a guaranteed advantage. The ...