THE Mexican currency crisis at the end of last year caused a sharp drop in confidence in emerging markets but the sector still offers great investment opportunities. Timing, however, is everything.
Since equity markets started in Latin America, they could have been expected to decline but, last year, they were among the best performers in US dollar terms.
Brazil's market rose 59.8 per cent on the Morgan Stanley Capital Index.
Peru ended the year up 50.1 per cent and Chile was up 48 per cent.
Mexico was a dog performer, as one would expect given the currency disaster, losing 42.4 per cent of every US dollar invested there at the start of the year.
Among other emerging markets, Turkey fell 49.2 per cent for the year and Poland fell 47.4 per cent.