Current commercial tensions generated doubts about the possible positive effects that next season of results or macroeconomic data could have in the markets.
The day on Monday could be marked by a strong bearish trend, according to the latest analysis of JP Morgan Chase & Co.which adopted a tactically defensive position due to the aggravation of the commercial war and the reprisals adopted by several countries. However, in the midst of global uncertainty, Latin America appears as a possible strategic refuge for investors.
The firm emphasizes that the region could benefit from the current situation thanks to three key factors: the lower exposure to dispute tariffs, the impulse of the prices of raw materials and the recent weakness of the dollar, which usually favor emerging markets.
In this context, JP Morgan suggests that an effective strategy would be Bet on a long position in Latin American assetscombining it with a short position in the markets of Southeast Asia, more vulnerable to commercial tensions. This proposal is part of the “monetization menu” of the firm, a guide to navigate volatility that also includes preferences by defensive sectors, precious metals such as gold and silver, and treasure bonds against US actions.
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Despite the strong 11% drop in markets during the last two sessions, JP Morgan observes technical signals of a possible short -term relief rebound. However, he warns that uncertainty will probably persist at least until the second quarter of 2025, so Geographic and tactical diversification will be key.
Investors interested in more detailed strategies can access the next Analysis call of the JP Morgan positioning intelligence team, which includes experts such as Manish and Jason Hunter.
Source: Ambito
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