LATAM banks review 1Q24

I firmly believe that LATAM has enormous growth potential. Its GDP represents 6% of the global GDP, while its stock market capitalization is only 1%.

The region benefits from:

• Low geopolitical risk

• Abundant natural resources

• Healthy demography

Macroeconomic and geopolitical shifts—disrupted supply chains, proxy wars, and capital transfer shifts—are the catalysts for the revaluation of LatAm equities. Those variables are cause and effect simultaneously. Moreover, the total is more than the sum of its parts. In summary, this makes investing in the Far West a lucrative opportunity.

My South America thesis has the required ingredients: robust fundamentals, macro tailwinds, and low equities valuation. Let's start with a chart showing the P/E ratio worldwide.