What’s next for Latin America?

(Harvest) If you’re an investor, there’s a lot to fret about in Latin America right now. NAFTA’s future is up in the air. The region’s two largest economies–Mexico and Brazil–have elected or are likely to elect populist presidents. Argentina is struggling with a massive financial squeeze and a run on its currency. Venezuela’s terrible humanitarian crisis has led to riots and massive emigration into neighboring countries. Complicating matters is the strengthening U.S. dollar, which has put pressure on the cost of financing economic growth and on stock prices. You can see the impact of the latter in the charts below, which compare hedged and unhedged versions of the iShares MSCI Mexico ETF ( EWW , HEWW ) with the broad iShares MSCI Emerging Markets ETF ( EEM , HEEM )

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