Brazil Stocks Win Over Fund Managers as Chile Is Left Behind
- Chile’s valuation seen high even after a slide in first half
- Brazil stocks seen supported by accelerating economic growth
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Money managers are betting Brazil’s stock rally will continue, while Chilean shares still look expensive even after a terrible first half of the year.
Latin American stocks beat the emerging-market average in the six months through June, lifted by outsize gains for utility, consumer and finance shares. But the performance of individual markets varied widely, from a 38% jump for Argentina’s Merval to a 1.3% drop for the benchmark in Chile. Investors say geographic allocation will be key to outperforming in the second half.