translated from Spanish: Local “noise” drown the good news for the economy in Latin America

Political and economic uncertainty in Latin America can stop tail winds for actions in the region.
“Is noise for reform in Brazil, the noise by growth in Mexico and the extra noise in Argentina,” said David Beker, strategist for fixed income in America Latina of Bank of America Merrill Lynch.
“The external environment can eventually help to the region, but at the local level it seems that a positive trigger in the short term there is”, Beker said in an interview.
The possibility of further economic slowdown in Mexico has led to strategists, including Citigroup, to reduce their perspectives on profits of companies.
Brazilian investors expect greater volatility while the country’s President seeks approval of a reform of the social security system.
So far, the Government does not have the 308 votes needed for that proposal is approved in the lower House.
On the other hand, the uncertainty surrounding the presidential elections of October in Argentina could lead to more caution.
Bank of America Merrill Lynch has maintained its unique overweight in the region about the Brazilian shares, but it has become a bit more defensive.
He added more exporters names to its portfolio, benefiting by the weakening of the real. “We have removed the foot off the accelerator,” said Beker.
Still, considered that the Ibovespa index can close 2019 at 120,000, about 23 percent for over current levels, helped by an increase of the profits of companies and the approval of the pension reform.
BofAML keeps a weighting of market for Chile and Peru and an infraponderacion in the case of Colombia and Mexico.
“Valuation has become more attractive in Mexico, but the flow of news has not helped,” said Beker.

Original source in Spanish