Political problems accumulate in South America.
After the scandals that affected President Temer in Brazil in the spring of 2017, it was the results of the first round of elections in Chile that caused the country’s stock market to bend.
The latest scandal is now affecting Peru and its President Pedro Pablo Kuczynski. The Brazilian construction company Odebrecht has indeed made payments to a company that it controlled while exercising a public mandate. Pedro Pablo Kuczynski has ruled out his resignation.
Odebrecht is at the heart of a huge corruption scandal in South America. Odebrecht claims to have paid more than $ 30 million in bribes to Peruvian officials over 10 years.
This political fragility must be taken into account before any investment in these South American countries, because their stock market indices regularly deviate at the outbreak of these scandals.
Find our EPU ETF analysis (Peru – iShares)
EPU : weekly data
