Advantages and disadvantages of investing in the Latin region. Why did AI choose Latin?

Advantages and disadvantages of investing in the Latin region. Why did AI choose Latin?

06 Oct 2022   |    2775

An investment portfolio that Deepscope collaborates with FINNOMENA by using AI (GuruPort Growth Momentum AI) release an update that chooses Latin fund such as #TISCOLAF and #KF-LATAM into the portfolio. Furthermore, apart from momentum or the return growth are the main key points of these funds, we will discuss the advantages and disadvantages of the Latin region.

Emerging markets are countries where economic growth is expected to increase over the next few years. There are many reasons why emerging market economies grow faster than developed ones. The main reason is that emerging markets tend to have lower levels of income inequality than developed nations. Another reason is that emerging markets have higher savings rates than developed nations. These factors make it easier for businesses to start up and expand in these countries.

However, if considered regionally, the emerging market in Latin America has a low Debt to GDP ratio, for instance, Mexico has a debt to GDP ratio lower than 60% which is lower than many developed countries.

Emerging markets are countries that have recently emerged from poverty and economic stagnation. They tend to have higher growth rates than developed economies, like those in Europe and North America. In fact, before the global financial crisis, emerging market economies were growing faster than developed ones. However, after the crisis, developing nations saw slower growth. But in recent years, emerging markets have seen much stronger growth. This is because there are many more people living in these countries, so they have more consumers who want to buy products. Also, they have a greater desire to invest in businesses and infrastructure, which helps drive economic growth.

Emerging markets still have better fundamental factor to support the development which has low public debt compared to developed countries that have higher Debt to GDP

At present, countries in the emerging market area become the location where innovative companies that capable of driving the world’s economy which leads investors come to the country

There are also drawbacks: investments in this region are volatile to some extent. The reason is many industries still have costs that depend mainly on the community.

**** If you are interested in the GuruPort GMAI that Deepscope collaborates with FINNOMENA, you can click this link  https://finno.me/deepscope for more information.

Share this article: