Clean Your Room and Buy Latin American Stocks: Bucko!

Chaos and Order: A Hemisphere in Bloom

Alright buckos let's get something straight. The world's a mess. Trade wars inflation and the general postmodern condition are enough to make a man want to retreat to his basement and binge on lobster bisque. But as I always say you can't just retreat into the chaos. You have to confront it clean your room and find the bloody signal in the noise. And right now the signal coming from Latin America is…intriguing. While the S&P 500 is puttering along at a measly 5% gain the iShares Latin America 40 ETF (ILF) has exploded with a 25% rally in the first half of 2025. That's right folks. While you're busy arguing about pronouns savvy investors are making a killing south of the border.

From Banana Republics to Boring and Stable: The Rise of Fiscal Responsibility

Now I know what you're thinking: "Latin America? Isn't that where financial crises go to retire?" Well it seems those days might be fading into the rearview mirror. According to Mario Mesquita chief economist at Itau Unibanco these economies have become 'a little bit more boring' in the last 10 15 years. 'Boring' is good people! Boring is what allows you to sleep at night without dreaming of hyperinflation and debt defaults. They've built up currency reserves adopted floating exchange rates and generally stopped acting like the financial equivalent of a toddler with a loaded diaper. And unlike the snowflake universities of the West countries like Brazil and Colombia have been bulking up their reserves like they are going to war. So maybe you should follow suit and buy precious metals...

Trump's Tariffs and Tangoing Currencies: A Dance of Dollars and Debts

Ah yes the specter of protectionism. President Trump's tariffs bless his heart are sending ripples through the global economy. But while the rest of the world is busy having a hissy fit Latin America is quietly positioning itself for success. A weaker dollar down 10.6% year to date is making it cheaper for these countries to manage their dollar denominated debt and sell their goods abroad. It's like a financial tango with the dollar stumbling and Latin American economies stepping gracefully into the lead. As I always say chaos is a ladder. And these countries seem to be climbing it quite effectively.

Valuations So Low They're Practically Giving Stocks Away!

Let's talk about value people. Brazil's Bovespa index is trading at about 8.4 times forward earnings well below its historical average of 10.7. Mexico's S&P/BMV is at a multiple of 13 below its average of 14.2. Chile Peru Colombia and Argentina are all trading at discounts. It's like going to a yard sale and finding a vintage Rolex for five bucks. Are you going to haggle over the price or are you going to snatch it up before someone else does? This is not financial advice of course. But as I said in my book *12 Rules for Life* stand up straight with your shoulders back. And maybe buy some undervalued Latin American stocks while you're at it.

De Dollarization and the Rise of the BRICS: A Brave New World Order?

The dollar's dominance is facing challenges. Countries are increasingly looking to de dollarize and Brazil is at the forefront of this shift. Bilateral trade with China is now settled in local currencies and the BRICS bloc is building frameworks for local currency settlements. Now I'm not saying the sky is falling but the tectonic plates of global finance are certainly shifting. Brazil according to 22V Research strategist Jordi Visser stands at the epicenter of a powerful global reordering. So while everyone else is preoccupied with tariffs and recession risks Brazil is quietly becoming one of the most compelling macro opportunities of 2025. Pay attention buckos! This is the kind of thing that separates the winners from the losers.

How to Play It: ETFs and Individual Stocks for the Discerning Investor

Alright so you're convinced. You want a piece of this Latin American pie. How do you get it? Well the easiest way for U.S. investors is through ETFs like EWZ EWW ECH EPU and COLO. Just be mindful of the fees. And for those willing to do a little more digging there are individual stocks to consider such as MercadoLibre. Daniel Gewehr head of equity strategy at Itau also likes names tied to Brazilian infrastructure Mexican and Chilean financials and consumer staples in Mexico. But remember investing is a risky business. So before you dive in headfirst clean your room sort yourself out and consult a financial advisor. And for God's sake don't blame me if you lose your shirt.