Reuters – Latin American bond and equity markets offer investors strong potential for large returns despite the bloodbath on commodity and stock markets on Monday, a hedge fund firm told Reuters.<\/p>\n
Hedge fund firm Emergent Asset Management and Argentina’s MBA Banco de Inversiones said on Monday they have launched a new hedge fund that will aim to exploit opportunities in the region once markets are calmer.<\/p>\n
Latin American countries are rich in oil and precious and base metals, whose prices have recently jumped to record highs.<\/p>\n
However, on Monday, panic-selling pushed crude oil prices down about 2 percent to around $70 a barrel and copper down to an intraday low of $7,700 after closing at $8,460 on Friday. Emerging market stocks and currencies were also marked down.<\/p>\n
“The demand for commodities will continue to act as a strong economic driver in the Latin American region,” said Susan Payne, Emergent’s chief executive.<\/p>\n
“Current account and fiscal surpluses, as well as flexible exchange rates, are also contributing to the region’s outperformance.”<\/p>\n