High inflation and escalating interest rates have tempered enthusiasm in private markets. These factors induced investor caution and lowered return expectations last year, breaking a decade-long asset class growth.
This time was different: Latin America’s post-pandemic paso doble with inflation and the exchange rate. Reactive monetary policies, supportive commodity prices and increased investor confidence have helped keep inflation and exchange rate volatility relatively in check.
Despite the crises, private households in the nine Eurozone countries we analyze have managed to almost double their total financial assets over the last two decades.