# Latin America's investing moment is now

> A weak dollar, strong commodities, and pro-business leaders are creating the best conditions for Latin American growth in decades.
- Title: Latin America's investing moment is now · CNBC | Shortify
- Summary: A weak dollar, strong commodities, and pro-business leaders are creating the best conditions for Latin American growth in decades. Latin America is…
- Keywords: latin america, emerging markets, investing, weak dollar, commodities, brazil, mexico, argentina, etf, foreign investment, pro-business leaders, business
- Source: CNBC — https://cnbc.com/2026/09/20/caruso-cabrera-the-investing-tailwinds-for-latin-america-are-the-best-in-decades.html
- Author: Michelle Caruso-Cabrera
- Published: 2026-09-20T11:59:45+00:00
- Read time: 2 min
- Topics: latin america, emerging markets, investing, weak dollar, commodities, brazil, mexico, argentina, etf, foreign investment, pro-business leaders, business
## Latin America beats the S&P 500
The iShares Latin America 40 ETF is up 15% year to date versus the S&P 500's 11%, and has surged more than 70% since late 2024.
## The tailwinds are the best in decades
A weak dollar, strong commodities, favorable geopolitics, and pro-business leaders elected across the region are driving growth. The weak dollar is the most important factor.

> Latin America is poised for take-off. The conditions for Latin America to achieve a higher rate of growth are the best they have been in decades.
## Why a weak dollar matters
A weaker dollar means investors seek stronger currencies and better returns, debt repayment becomes cheaper for countries borrowing in dollars, and commodity prices rise.
## Real rates attract global capital
Latin America has some of the world's highest real interest rates, with carry levels reaching 10% in Brazil. This attracts fixed income and foreign exchange inflows while leaving room for rate cuts to help stocks.
## Country-specific opportunities emerging
Mexico benefits from the AI boom through CPU assembly exports. Argentina is undergoing the most market-friendly shift in a generation. Capital is flowing back to Colombia, Peru, Ecuador, and Argentina.
## U.S. strengthens Western Hemisphere ties
Secretary of State Marco Rubio visited Colombia, Ecuador, and Peru this month, reflecting the White House's focus on renewing ties with the region and a renewed Monroe Doctrine approach.
## Rising U.S. rates pose biggest risk
Higher U.S. interest rates would severely hurt Latin America's growth prospects. El Nino-driven droughts and floods also threaten agriculture in Colombia and Peru.

> If the US sneezes interest rate wise, that's full-on pneumonia for Latin America.
## Brazil ETF offers liquid entry point
The iShares MSCI Brazil ETF has 8.6 billion dollars in assets and is up 18% this year. It offers exposure to mining, oil, and financials including the digital bank Nu Holdings.
## Brazil's election could shift markets
Brazil's presidential election is in weeks. Polling now shows business-friendly candidate Flavio Bolsonaro competitive with incumbent Lula da Silva. The first round is October 4 with a runoff on October 25.
## Key takeaway

Latin America is experiencing its strongest investment tailwinds in decades, but countries must act now to capitalize on favorable conditions before they shift.