Let’s Hear It for Latin America

April 27, 2026 | Weston Whalen, CFA, Associate Research Analyst

Three-line chart comparing cumulative returns for MSCI EM Latin America Index, MSCI EAFE Index, and S&P 500 Index, Jan 1, 2026 through April 24, 2026. Dashed line at February 28 demarcates U.S. strikes on Iran. While all three indices dipped after war began, Latin America Index was higher to begin with and remains high. Most recent data point (4/24) for Latin America is 20.36%, EAFE is 5.7%, and S&P 500 is 5.06%. For full dataset, please email marquettemarketing@marquetteassociates.com.

Latin American equity markets have shown remarkable strength in 2026. After a strong start to the year, the MSCI Emerging Markets Latin America Index corrected by only 4% in March amid a broad, more pronounced market pullback due in large part to the conflict in Iran. Brazil, which represents the largest economy in Latin America, was uniquely positioned to handle commodity market disruptions given its status as a net exporter of crude oil and a world leader in renewable energy utilization. Indeed, almost 90% of Brazilian electricity is generated via hydropower, wind, and solar sources, so the nation has been able to withstand recent energy shocks better than many other Western nations. The Central Bank of Brazil also cut interest rates for the first time in two years in March, though additional rate cuts that were anticipated at the start of this year are now more uncertain. Investors have also looked on Latin American financial institutions with favor in recent time, as banks across the region (e.g., Creditcorp in Peru, Itaú in Brazil, and Grupo Financiero Banorte in Mexico) are outperforming their global peers on a year-to-date basis due to attractive earnings projections. Additionally, significant foreign investment in the Brazilian economy has led to higher volumes and earnings for B3, the Brazilian stock exchange.

Global markets have stabilized in April, with the S&P 500 Index now trading near calendar year highs and developed international equities also exhibiting renewed strength. At the same time, Latin American equities have continued their upward trajectory, with the MSCI Emerging Markets Latin America Index now up more than 20% since the start of 2026. Following strong performance in 2025 and after having avoided a major drawdown in the wake of the Iran conflict, investors may want to keep a close eye on Latin American stocks as the year progresses.

Print PDF

Weston Whalen, CFA
Associate Research Analyst

Get to Know Weston

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Related Content

Column chart showing weight in MSCI Emerging Market Index for Taiwan, South Korea, and China annually since 2006. Taiwan hovered around 11% up to 2021, and has increased since then, with 2026 YTD at 26.5%. South Korea has followed a similar path, averaging about 14% 2006 to 2023; 2024 dropped to 9%, but 2025 was back up to 13.3%, and its weight has jumped to 23.1% YTD. China generally increased up to 2020, peaking at 29.7% of the index, but has since mostly decreased year to year, with 2026 YTD at 19.7%. For full dataset, please contact marquettemarketing@marquetteassociates.com.

06.01.2026

The New Face of Emerging Markets

The MSCI Emerging Markets Index has undergone a significant structural transformation in recent years. For much of the past decade,…

05.26.2026

The Best and Worst of Times

The classic novel A Tale of Two Cities by Charles Dickens begins with the line “It was the best of…

Four-line chart showing weight in Bloomberg Aggregate U.S. Bond Index for Treasuries, Government-Related, Corporate, and Securitized sub-indices, 12/31/1999 through 3/31/2026. For date range shown, Treasuries started at 31.7% and end at 45.9%. Government-Related start at 11.4% and end at 4.3%. Corporates start at 20.9% and end at 23.9%. Securitized start at 36.0% and end at 25.9%. For full dataset, please contact marquettemarketing@marquetteassociates.com.

05.18.2026

The “Magnificent One”

Over the last few years, equity markets have been defined by a group of stocks often referred to as the…

Combination column and line chart showing increase in non-renewables and renewables in net installed capacity (GW) in columns and share of new electricity generating capacity by renewables (line) annually since 2005. Renewables ave seen a marked increase in recent years (183.95GW in 2019 to 691.94GW in 2025). Renewable Share was at 86% for 2025. For full dataset, please contact marquettemarketing@marquetteassociates.com.

05.11.2026

A Renewed Focus on Renewables

In addition to the humanitarian toll of the conflict in Iran, the world is currently confronting the impact that trade…

05.07.2026

The Fed Tackles Succession Planning

The leadership structure of the Federal Reserve is intentionally designed to promote continuity, independence, and institutional stability across political cycles….

Stacked column chart showing Weight in S&P 500 Index in 1985, 1995, 2005, 2015, and 2025 for top 10 companies at that time, with companies stacked for each year by weight. From 1985-2015, top 10 weight ranged from 17.6% to 21.1%, but 2025's weight was 40.6%. Company makeup changes over time, with no companies from 1985/1995 categories in 2025. For full dataset, please contact marquettemarketing@marquetteassociates.com.

05.04.2026

This Too Shall Reconstitute

Rooted in medieval Persian Sufi thought, the adage “this too shall pass” speaks to the fleeting and impermanent nature of…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >