The stars have aligned for a major outperformance of Chilean stocks versus the EM equity benchmark. Plummeting inflation in Chile will push monetary authorities to continue their aggressive rate cuts, engineering a quick economic…
According to BCA Research's Emerging Markets Strategy service, the Chilean peso’s depreciation is already quite advanced. Over the next few months, the CLP will remain under downward pressure due to a likely…
The Chilean economy is in a unique position worldwide: as it is the first to enter a recession, it will be the first to recover. Together with historically cheap valuations, this will lead to a sustained outperformance of Chilean…
Last Friday, the Central Bank of Chile became the first major Latin American monetary authority to cut rates, thereby beginning the EM monetary easing cycle. In its latest meeting, board members decided to reduce the policy…
The Chilean economy is entering a recession. After two years of tightening fiscal and monetary policies, real economic growth is beginning to contract and inflation is tumbling. Our Emerging Markets strategists expect the…
Chile’s equity market is set to sustainably outperform its EM peers on the back of political and macroeconomic tailwinds. The new moderate constitution and pragmatic government will boost market sentiment. A continued economic…
The Chilean economy is entering a recession. Inflation will drop rapidly and the central bank will cut rates meaningfully in H2 2023. We continue to recommend a structural overweight across Chilean risk assets on the basis of falling…
After years of underperformance, the pieces are finally falling into place for Chilean equities to sustainably outperform their EM peers. Political uncertainty has dissipated with the establishment of a pragmatic government and the…
Executive Summary Copper Will Remain Tight Even In Recession Supply-chain disruptions arising from Russia's invasion of Ukraine and demand hits from lockdowns in Shanghai are increasing the odds of a global recession,…
Executive Summary Chile: Stocks Rally When Inflation Rolls Over The Chilean economy is overheating. Headline and core inflation have more than doubled the central bank’s target and wage growth is surging. Odds are…