Lat Am elections: about to shift back to the right?

The low public support for (left-wing) incumbents in many of Latin America’s largest economies, taken together with weak public finances, suggests that the wave of the upcoming elections could act as a catalyst for a rebound in (beaten up) financial assets. That said, even more market-friendly administrations will find it challenging to solve the region’s fiscal problems, especially if – as we expect – the prices of the region’s key export commodities decline over the next few years.