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By most measures, Brazil weathered the global financial crisis better than almost any other major economy. Amidst the economic turmoil in North America and Western Europe, Brazil saw its reputation enhanced among international investors. But when it comes to recent stock market performance, the São Paulo exchange is a laggard in comparison with some of its neighbours.
So far this year, investors have been richly rewarded in places like Chile, Peru, Colombia and even Argentina. In Bogotá, the IGBC index is up by 33% through early December. In Santiago, the IPSA has gained 39% over the same period, while the Merval in Buenos Aires has added 48%. But even these impressive performances have been surpassed by Lima’s red-hot IGBVL, up by 53% year-to-date. And it gets even better for investors looking for dollar returns, as local currencies in Latin America have been appreciating against the greenback.