New York: Latin America's stock markets are outperforming their US peers in 2026, in a phenomenon that surprises global investors amid geopolitical tensions and the impact of the US-Iran war on emerging markets. While Wall Street records modest returns, Latin American indices are marking historic gains.

According to Bloomberg data from April 2026, Brazil's BVSP index has accumulated a gain of 21.7% since the start of the year. The MSCI Emerging Markets Latin America, which had already risen 54.8% in 2025, has accumulated another 23% gain so far in 2026. Colombia, Peru, and Mexico record year-on-year increases of 10.6%, 18.8%, and 9%, respectively, in their benchmark stock indices. The Argentine peso gained 4% against the dollar, and the Colombian peso 2.5%.

Latin America as Safe Haven Amid Energy Crisis

A survey of Latin American fund managers published by Bank of America notes that positioning in the region continues to grow. Oil-producing countries like Ecuador and Colombia benefit from rising international crude prices, which surpassed $116 per barrel in March 2026, driven by the Middle East escalation. Dollar bonds from Ecuador and Colombia rank among the best performers in the period.

Why Are Markets Holding Up?

Analysts at JPMorgan and Bank of America attribute the strong performance to a combination of factors: Trump's policies have generated a "sell America" move among international investors, redirecting capital toward alternative emerging markets. The political stabilization in Venezuela under interim president Delcy Rodríguez, together with the resumption of relations with the IMF and World Bank, also contributes to improving regional sentiment. "The case for diversification has never been stronger than today," declared Chris Metcalfe, chief investment officer at IBOSS.