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What does QE3 mean for Latin America?

It is not clear that the first two rounds of QE by the Fed provided much of a boost to financial markets in Latin America and we doubt that a third dose of the same medicine will be any different. So while markets have rallied in response to yesterday’s move by the Fed, we still expect a fresh deterioration in global risk appetite to cause stock markets in Latin America region to fall by 10% or so over the next year.

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