Latin American Markets Reach Multi-Year Highs Latin American equity markets are currently experiencing their most significant investor inflows in over a decade. This surge in liquidity has propelled major indices in **Brazil, Colombia, and Mexico** to multi-year peaks, as global capital reallocates toward emerging markets offering high real yields. The **MSCI EM Latin America Index** has climbed over **20%** in 2026, recently touching an 11-year high. This performance outpaces the broader MSCI Emerging Markets Index, which has seen an **11%** rise over the same period. Brazil: Record Breaking Performance The **Ibovespa** has achieved a historic milestone, reaching the **190,000-point** mark for the first time. The index has gained **15%** in local currency and an impressive **21%** in dollar terms since the start of the year. Foreign investors are the primary drivers of this rally, injecting **R$ 34.67 billion** into the Brazilian stock exchange as of mid-February. Markets are pricing in an aggressive easing cycle, with expectations that the central bank will cut interest rates by **250 basis points** to reach **12.5%** by year-end. Colombia: All-Time Highs Colombia’s **MSCI COLCAP** index has surged to an all-time high of **2,424 points**. Over the last 12 months, the Colombian market has delivered a staggering return of **74.1%**, significantly outperforming regional peers. Growth in the Andean nation is bolstered by record highs in commodity prices, specifically gold and copper. Investors are also monitoring the upcoming election cycle, though current momentum remains driven by a **57.3%** concentration in the financial sector, which has benefited from robust local earnings. Mexico: Stability and Nearshoring Gains The **S&P/BMV IPC** index in Mexico has accumulated a gain of nearly **18%** this year, currently trading around the **71,436** level. The market is benefiting from the "nearshoring" trend and the stabilization of trade rhetoric within the USMCA framework. While IPO activity remains cautious, the inclusion of **BMV IPC futures** on global exchanges has increased international visibility. Analysts project a modest GDP recovery of **1.3%** for 2026, supported by strong consumption and manufacturing exports. Regional Economic Indicators The "LA7" economies—comprising Brazil, Mexico, Argentina, Chile, Colombia, Peru, and Ecuador—are projected to grow at an average rate of **1.9%** in 2026. Inflation across the region is expected to hover around **4.3%**. Despite some fiscal concerns in an election-heavy year, the combination of high commodity prices and shifting monetary policies continues to make the region a "stable spot" for global portfolios.