It has been a very challenging year for US stocks and elsewhere around the world. However, a bright spot exists: Latin America is an upside outlier. Yes – Latin America. And this comes after a collapse of more than 70% between early 2008 and the trough at the start of the pandemic. The rally is being driven largely by commodities. ILF – iShares Larin America 40 ETF is up nearly 9% year-to-date. Now, fourteen years after the all-time record was set for the MSCI regional benchmark, the market is finally starting to show signs of life again.
I predict consumers will stay loyal to their existing brands as the market goes full EV in the coming decade. Manufacturers will force the switch. There won’t be an option. What I mean by that is that all new cars being offered will be fully EV at some point. And, at that point, I do not foresee a huge shift of people switching from their existing brand to Tesla. I’m talking about the late adopters, here.