Fynsa
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.
In fixed income, we remain convinced of the merits of UF-indexed strategies, where inflation-linked returns continue to outperform nominal alternatives. In equities, valuations below the 10-year average and the lag in returns relative to Latin America present an opportunity to position oneself ahead of a potential de-escalation of the conflict and the passage of pro-investment reforms promoted by the current government.
Market declines caused by geopolitical shocks should ultimately present buying opportunities.
The recent case of Inversiones Portuarias Chancay shows how a well channeled mass of retail investors can change the face of an entire stock market in a matter of months. However, it can also be a minefield for those who enter late, ill-informed or undiversified.
Trying to beat the S&P 500 has historically been a thankless task. However, there are strategies that manage to do so. But it's worth putting the numbers in context.
Chile continues to offer an attractive risk-return ratio, supported by discounted valuations, attractive real rates and structural catalysts not yet internalized by the market.
In this context, putting cash to work makes more and more sense: increase exposure in corporate fixed income, in equities buy the market dips, and diversify sectorally and regionally.
The participation of the retail investor in the U.S. market has become increasingly relevant in recent years. According to data from J.P. Morgan, retail already accounts for nearly 30% of the total market volume.
Our best recommendation remains greater regional and sector diversification. Also consider increasing your fixed income exposure.
