How long can the Latin American bull run continue? The region has continued to make strong gains so far this year. The MSCI Latin America index is up 15 per cent for the year, while only one other region has made a positive return – Eastern Europe, up 3.3 per cent.

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John Authers on the Latin American bull run

Since global market turmoil began in February last year, equities in the region have outstripped all others, with a gain of 80 per cent. There are few signs that this will end. According to Emerging Portfolio Fund Research of Boston, specialist Latin America and Brazil funds have recorded net inflows this year, even as emerging markets funds as a whole suffered severe outflows. On valuation, stocks are no longer very cheap on an earnings multiple of 15.9, according to MSCI, but they are cheaper than Far East equities and out of “bubble” territory.