Latin American stocks and bonds appear to be well-positioned amid the trade war initiated by the Trump administration, which has primarily spared the region. This has caused a turbulent market on Wall Street, leading investors to seek non-U.S. assets.

While the Nasdaq and fear gauge have seen declines, Latin American assets have shown resilience due to the region's trade deficit with the U.S. Consequently, the MSCI Latam stocks index has outperformed the S&P 500 this year.

Analysts believe that the shift in global trade dynamics may attract new investors to Latin American markets. This reorganization could benefit the region, especially if trade becomes more regionalized.

Countries like Brazil and Mexico are faring well, with their stock markets and currencies seeing positive movements. Brazil is seen as well-equipped to handle tariffs, while Mexico is expected to maintain favorable trade relations with the U.S.

The surge in Latin American assets follows a period of U.S. asset dominance, with investors reassessing growth prospects. Emerging market assets, in general, are performing well, thanks to improved fundamentals, technical factors, and attractive valuations.