The return of capital flows to Latin America: The beginning of the excess liquidity effect
C apital has begun flowing back to Latin America n countries since mid-May 2020 despite their very troubled situation in health, economic and, in several cases, political terms. This obvious sign of decoupling between financial markets and fundamentals reveals : Investors’ search for yield; The effect of the overabundant liquidity created by central banks, leading to the investment of money in risky asset classes.