Latin America is the Leading Region for Investment in 2010 and Interest in Chile RisesPublished: February 10, 2010
Stocks will have the highest returns, with steel and mining as leading sectors. Chile is the third-safest country in the region.
This year, investors wager that stocks will yield Latin America's best returns in 2010.
This projection was made based on a poll conducted by Banco Santander to over 100 investors at a resort in Cancun, Mexico, during its annual meeting. The meeting's slogan was, "What will we do new in 2010?".
Despite the fact that 60% of participants said that it will be more difficult to yield earnings this year than in the past, one out of four participants said that it will be a significantly better year.
When it comes to choosing investments, Latin America leads, with 55.2% in favor and shares appeared as the preferred instrument.
Fourteen percent of those attending the meeting in Cancun are also considering local instruments.
Private stocks and related instruments received less attention.
Strong Interest in ChileThe perception of our country is positive: nineteen percent of the participants stated that they are considering increasing their investments in Chile, with this figure rising an impressive six points over the last year.
Furthermore, only 7 % claimed that they wanted less exposure to the Chilean market, which is similar to the poll taken in 2009.
"Although Chile is not at the forefront of the countries with increased exposure - since, due to its quality, it is an expensive market - neither is one of the places from which investors are removing their money," assures Fernando Zavala, Banco Santander's Head Corporate & Investing Banking.
Global PanoramaChina was chosen the world's most overvalued market by 31% of the investors.
This, however, does not necessarily mean that the Asian giant is not a good investment option this year, explains Francisco Errandonea, Banco Santander's Research Director. "This doesn't mean it's a bad market, just expensive," he clarifies.
China is followed by Latin America, which 23% of the investors in Cancun believe to have an overvalued market. Next comes the United States, with 16% of participants considering its market to be expensive.
At the other end of the spectrum are the emerging countries in eastern Europe with six percent, and the Middle East with eight percent.
Source: www.radiosantiago.cl