GXG: The Stars Are Finally Aligning For Colombia

Summary

• After the steepest set of rate hikes in LatAm over the last two years, Colombia is finally poised for a rate cut cycle.
• Easing inflation and an improving fiscal position bode well for the Colombian cost of capital, along with the Petro government's weakening reform push.
• With equities still very cheaply priced heading into future monetary easing, the risk/reward on MSCI Colombia ETF is looking a lot better.