Chile – The Commodity Boom Continues !!

We have written a few articles about Chile in the past.It is a commodity rich country – especially copper.Banking and mining stocks are a great investment in this South American country.

In an article titled “Commodities,Natural Resources keep Chile ETF on Fire” Tom Lydon of ETFTrends writes that:

In these commodity-crazy times, Chile and its exchange traded fund (ETF) might be something to think about.

The iShares MSCI Chile (ECH) launched on Nov. 20, and it’s been up 14.4% since then. Year-to-date, it’s up 11.5%. Chile is a commodity-based country and it is a surplus country with far less moving parts than in the U.S., says Roger Nusbaum for Seeking Alpha. Chile, in particular, has copper to spare. The metal is used in every major industry and growth in emerging markets is fueling demand for it.

Another perk about the Chilean economy is that the social security is privatized, so the demand for Chilean equities is consistent. Chile’s economy has an attractive position now as only 15% of its exports go to the United States, so the health of the U.S. economy isn’t a significant factor. “

An investment in Chilean stocks might payoff big in the longrun.

Leave a Reply

Your email address will not be published. Required fields are marked *