Fynsa
Economic recovery, an improvement in the terms of trade, monetary easing, and social security cash flows offer Chilean stocks high medium-term profit potential.
The IPSA, hovering near 10,000 points, is trading at a discount, and there are several selective buying opportunities. The local fixed-income market is returning to an acceptable level: there are bonds with a YTM of UF + 2.5% that offer very high credit quality.
There is an anomaly in the markets called the "Monday effect." Is this a reality in Chile? To evaluate this, we analyzed the daily returns of the IPSA and calculated some basic statistics according to the day of the week.
There are still opportunities, but the focus should remain on the search for investment grade opportunities in the region, to the detriment of high yield.
To the reduction of political-institutional risks and highly discounted valuations, we can now add the expectation of aggressive monetary easing going forward.
It is quite likely that we will have a good performance in terms of returns in investment portfolios, both in fixed income and equities, in the second half of the year.
"In our first three years of track record, the Fund has been able to outperform the market in all rolling twelve-month periods," says José Joaquín Prieto, Fynsa's Investment Manager.
