U.S. stocks underperformed globally last year due to President Donald Trump's trade policies and threats to Federal Reserve independence, but Latin American markets have seen a significant increase in Latin American stocks. Despite this, despite the ongoing U.S.-Iran war, Latin American equity indices continue to outperform. Brazil's benchmark BVSP index has gained 21.7% since the start of the year, Chile's S & P IPSA index is up 8.2%, and Colombia's benchmark indexes have also posted year-to-date jumps of 10.6%, 18.8%, and 9.9%. The MSCI Emerging Markets Index, which surged 33.6% in 2025, has jumped 14% since this year and has already climbed 23% higher since 2026. The operation to seize Venezuela's president, an oil blockade on Cuba, and threats of military action in Colombia and Mexico have not deterred investors. Analysts attribute Latin America's resilience to its distance from and direct trade links to the Middle East and commodities wealth. However, they also noted that Brazil, Mexico, and Colombia were among the strongest performers in emerging market portfolios.