Why investors like Latin America’s inflation-beating ESG stocks

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By Trey Thoelcke Published
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Why investors like Latin America’s inflation-beating ESG stocks

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By Michael Molinski, Callaway Climate Insights

(Michael Molinski is a senior economist at Trendline Economics. He’s worked for Fidelity, Charles Schwab and Wells Fargo, and previously as a foreign correspondent and editor for Bloomberg News and MarketWatch.)

SÃO PAULO (Callaway Climate Insights) — Latin American stocks led the world in January, and much of that is because oil, commodities, financials and gold — historically stocks that beat inflation over time — outperformed.

And many of those stocks excelled in ESG Ratings, stocks which had solid environmental, social and governance policies.

Latin American stocks rose 7.3% in last month, compared to a 1.9% drop in the MSCI Emerging Markets index and a 5.3% decline in the Developed Markets index for the period.

Metals, mining, oil, gold, commodities, real estate and financials were a big part of the outperformance of Latin America. The reason is simple: inflation is rising, and those sectors stand to benefit. Materials and commodity producers generally do well when inflation is on the uptick, with financials joining the party not long after. . . .

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Photo of Trey Thoelcke
About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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