Chilean stock market hits 3 year high, what the hell?

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jehturner
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Re: Chilean stock market hits 3 year high, what the hell?

Postby jehturner » Wed Jan 04, 2017 8:43 am

admin wrote:For instance, the IPSA. I have this ETF / Muetual fund that tracks the the IPSA:
http://www.bolsadesantiago.com/mercado/ ... CFMITNIPSA

It is up like 15% this year, I am not really happy with it, but it keeps going up so I am willing to play along for now.

Ah, you mean the one and only (last time I checked) Chilean ETF! Let us know how it goes.

PS. Thanks for the link to the book; have just ordered a copy for the sake of $12.

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admin
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Re: Chilean stock market hits 3 year high, what the hell?

Postby admin » Wed Jan 04, 2017 1:36 pm

yea, you want to also do some calculations as to if the IPSA rebalance coming up is going to help or hurt.

http://www.bolsadesantiago.com/noticias ... ces-b.aspx

I think it should help, but not sure. I have been burned and won big with index fund re-balancing.
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Re: Chilean stock market hits 3 year high, what the hell?

Postby admin » Fri Jan 06, 2017 9:35 am

I think that IPSA rebalance happened late yesterday, but they said it started the 6th. Perhaps people were making moves based on it. I have a little bit of that CFMITNIPSA IPSA index ETF (if you want to call it that, it acts more like a mutual fund that rebalances every day).

I got beat badly a couple of times owning individual stocks that made up parts of index funds when they got dropped from the index, and I did not realize that a major part of their float was held by an index fund.

I have also done pretty good buying the stocks that were dropped from an index through no fault of their own (e.g. they just get pushed out by weighting of some other stock), and then waiting for them to recover and be included again in to the index fund. Typically that works well when they are small sector concentrated indexes (which the IPSA probably counts as one), and the stock in question has a relatively small float with a large chunk being automatically purchased by the fund that is weighted to the index.

Overall, I have developed an aversion to index funds and index ETF's. Your never going to beat the market, by definition, and fees almost never make sense. I still own a few, and from time to time will park money in a low cost one for lack of a better strategy.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

john
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Re: Chilean stock market hits 3 year high, what the hell?

Postby john » Fri Jan 06, 2017 11:52 am

admin wrote:I think that IPSA rebalance happened late yesterday, but they said it started the 6th. Perhaps people were making moves based on it. I have a little bit of that CFMITNIPSA IPSA index ETF (if you want to call it that, it acts more like a mutual fund that rebalances every day).

I got beat badly a couple of times owning individual stocks that made up parts of index funds when they got dropped from the index, and I did not realize that a major part of their float was held by an index fund.

I have also done pretty good buying the stocks that were dropped from an index through no fault of their own (e.g. they just get pushed out by weighting of some other stock), and then waiting for them to recover and be included again in to the index fund. Typically that works well when they are small sector concentrated indexes (which the IPSA probably counts as one), and the stock in question has a relatively small float with a large chunk being automatically purchased by the fund that is weighted to the index.

Overall, I have developed an aversion to index funds and index ETF's. Your never going to beat the market, by definition, and fees almost never make sense. I still own a few, and from time to time will park money in a low cost one for lack of a better strategy.


Interesting comments! Seems like you have successfully navigated through the complexities of the investment trade.

I have encountered many twists and turns in my over 50 years of investing experience...and the one thing I have learned (in many cases the hard way) is that investing is not a mug's game. For those forumites who are pondering what kind of investments to make, the following articles may be of interest:

Index Funds vs. Mutual Funds
http://www.fool.com/investing/2016/08/2 ... funds.aspx
The Illusion of Stock-Picking
https://blog.wealthfront.com/illusion-s ... ing-skill/
One must care about a world one will not see.
--- Bertrand Russell


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