Brazil's Stock Market May Be Eclipsed by Mexico's
- Mexico's market capitalization is catching up with Brazil's
- Brazil currency plunge crushing returns for overseas investors
For the past two decades, Brazil has been the indisputable king of Latin American stock markets. At one point a few years ago, its market had gotten so big that it was almost four times larger than that of its nearest rival, Mexico. In fact, you could have added up the stock market value of every other country in the region and it would have fallen well short of Brazil’s $1.7 trillion.
But now, as the nation’s recession and political crisis deepen and its currency plunges, Brazil’s grip on the top spot is suddenly weakening. That gap over Mexico, once as much as $1.1 trillion, is down to just $133 billion. And while stock pundits aren’t necessarily predicting that this slim lead will disappear entirely, a regression analysis of the current pace of declines indicates that it could happen over the next 13 months.