How exposed are equity markets to investor risk aversion?

Whereas all of Latin America’s equity markets would be hit by a renewed bout of investor risk aversion, some appear to be more vulnerable than others. Specifically, Brazilian, Argentine and Mexican equities look likely to underperform in times of declining risk appetite, while Colombian and Chilean stocks might hold up better. Nonetheless, during periods of acute market stress, all of the region’s equity markets are likely to witness a heavy sell-off.