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

Chile Investment, how to invest in Chile, what to watch out for when investing, economic issues, currency exchange in Chile, and more.
User avatar
admin
Site Admin
Posts: 14303
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

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

Postby admin » Mon Oct 24, 2016 11:23 am

well, here is finally some sort of explanation that seems to make some sense.

It's the elections stupid!!!
http://www.economiaynegocios.cl/noticia ... ?id=300080

Foreign investors were betting that the Pinera vs Lagos was providing two choices, that are both viewed as market friendly. The center right results of the mayoral elections, just tipped this calculation more towards Pinera. Which after the total and complete cluster-F of uncertainty that Bachelete and the clown car has provided over the last few years, is a whole lot of clarity on where the politics and the economy is going. They are known factors.

Also, there seems to be some optimism that unemployment will subside. We are out of the economic low season (winter). I opened the regional paper yesterday, and there was a lot of advertising for jobs. Not just any grunt labor either. They were big advertising for management, technical, and other high level, good paying positions, like 3 x 4 inches, on the second and third pages of the paper. I have not seen that in a while.
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.

MJSaywell
Rank: Chile Forum Citizen
Posts: 149
Joined: Fri Oct 30, 2015 8:22 am

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

Postby MJSaywell » Mon Oct 24, 2016 10:44 pm

Yeah that would be right. Another high today I see highest in 3 and half years.

MJSaywell
Rank: Chile Forum Citizen
Posts: 149
Joined: Fri Oct 30, 2015 8:22 am

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

Postby MJSaywell » Mon Oct 24, 2016 10:46 pm

On the employment front, anecdotally looking around there is actively everywhere around Puerto Varas area, a lot of construction etc going on

User avatar
FrankPintor
Rank: Chile Forum Citizen
Posts: 1127
Joined: Thu Aug 09, 2007 4:53 pm
Location: Guayaquil, Ecuador

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

Postby FrankPintor » Mon Oct 24, 2016 11:35 pm

HybridAmbassador wrote:Why is gasoline and diesel fuels still dispensed in gallons? When everything is metric but then the combustibles are sold in gallons instead of liters? Thought when everything is in metric then everything but no, the automobile fuel is still called Gallons? Oh, it is in Peru Iam referring to, when I was there ! Is it the same in Chilitolandia?

Yes, in Perú it's like that, also here in Ecuador:

Screen Shot 2016-10-24 at 21.31.15.png
Caracas es Caracas. Lo demás es monte y culebra!

User avatar
FrankPintor
Rank: Chile Forum Citizen
Posts: 1127
Joined: Thu Aug 09, 2007 4:53 pm
Location: Guayaquil, Ecuador

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

Postby FrankPintor » Mon Oct 24, 2016 11:43 pm

admin wrote:well, here is finally some sort of explanation that seems to make some sense.

It's the elections stupid!!!
http://www.economiaynegocios.cl/noticia ... ?id=300080

Foreign investors were betting that the Pinera vs Lagos was providing two choices, that are both viewed as market friendly. The center right results of the mayoral elections, just tipped this calculation more towards Pinera. Which after the total and complete cluster-F of uncertainty that Bachelete and the clown car has provided over the last few years, is a whole lot of clarity on where the politics and the economy is going. They are known factors.

Also, there seems to be some optimism that unemployment will subside. We are out of the economic low season (winter). I opened the regional paper yesterday, and there was a lot of advertising for jobs. Not just any grunt labor either. They were big advertising for management, technical, and other high level, good paying positions, like 3 x 4 inches, on the second and third pages of the paper. I have not seen that in a while.

Lagos and Piñera again? Wow there isn't much turnover at the top in Chile is there? Is this some kind of "quitate tú pa' ponerme yo" kind of thing?
Caracas es Caracas. Lo demás es monte y culebra!

User avatar
admin
Site Admin
Posts: 14303
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

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

Postby admin » Tue Oct 25, 2016 7:28 am

Well, better than what it use to be. 30+ years of the same party, every time. That is where the corruption get's entrenched. Before Pinera, there were bunch of mid-level bureaucrats that started and ended their carriers in the same office. A whole generation thought it was a right to sit on their rear, collect a big paycheck, and really do nothing.

That might have been what bit them in the rear with this election. They just thought Pinera was a fluke, and they could resume their positions doing nothing.

Think a little competition and change is good, just not too much or all at once.
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.

User avatar
admin
Site Admin
Posts: 14303
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

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

Postby admin » Tue Oct 25, 2016 7:38 am

Well, the big worry, at least for me, is that there is the talk of Allende (the daughter) running for president.

http://www.reuters.com/article/us-chile ... F120141011

Just the name alone, hitting the international press, would devastate the economy in Chile. It would totally spook investors. She is not even all that left compared to her father, but the international investors and companies are not going to care.

On the other hand, it might be the final nail in the coffin for the old center left, as it would force a decision among the fence sitters to either go center right, or hard left. Chile is in a very different place economically, socially, and politically than 1970. Even people that were supporters, might look around at their iphone, car, and new house, and wonder if they are willing to risk it for an idealization of a ghost.
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.

MJSaywell
Rank: Chile Forum Citizen
Posts: 149
Joined: Fri Oct 30, 2015 8:22 am

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

Postby MJSaywell » Tue Oct 25, 2016 8:02 am

Phew had me all worried there till I saw it was from 2014. No way will they pick her for president, not even sure if she wants it, although she is president already of the socialist party isn't she, how Reuters jump to that conclusion im not sure. They must know they will have a better shot with Lagos. Mind you the whole Nueva Mayoria is disintegrating anyway so it's going to be fun to watch what happens. Piñera or Lagos will be good.

User avatar
admin
Site Admin
Posts: 14303
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

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

Postby admin » Tue Oct 25, 2016 4:49 pm

no, they are still talking about it in the media from time to time. Think the last mention I heard was like last month on the news. That article was just the best summary I found in English.

Now that lagos has pretty much confirmed he will run, I have not heard anything recently.

The Pinera and Lagos, were the guys that showed up at the campaigns the night of the mayor election. That pretty much means they are the candidates that will run. However, the left is such a fractured mess right now, there very well could be a whole bunch of candidates come out of the wood work.

Senator Alberto Espina from the RN said after Bachelet won that he was going to run. I have not heard anything recently about that.
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.

User avatar
admin
Site Admin
Posts: 14303
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

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

Postby admin » Tue Oct 25, 2016 4:53 pm

here, july 9th, 2016
http://www.reuters.com/article/us-chile ... SKCN0ZP0SA

Supposedly they are quoting her in the El mercurio. I think that was back about the time I heard it mentioned on the TV news.
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.

User avatar
admin
Site Admin
Posts: 14303
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

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

Postby admin » Tue Oct 25, 2016 5:05 pm

Allende running for president would be like Trump, Clinton, and Sanders getting their genes mixed up in a transporter or something.

That is not even fair. From what i understand, It is not like she is a bad senator or anything. She has experience. A bit too left for my tastes, it is just all the historical baggage she brings along with her name and what that would potentially do to the stability of the country.

She is left, but she is not her father. Her father was so far bat-shit crazy left communist, he freaked the Russians out. Still, among a lot of the kids that were not even born, playing El Comandante in the streets and posting photos to their facebook pages with their iphones, he is some super folk hero. Thus, she must be too.

Then also, 99% of the World would just think the author Isabel Allende is running for president, and never connect the historical dots.
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.

User avatar
admin
Site Admin
Posts: 14303
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

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

Postby admin » Tue Oct 25, 2016 5:33 pm

dang, it just keeps going up.
4,312.74 +36.75 (+0.86%)

look at this crazy chart:
http://finance.yahoo.com/quote/%5EIPSA?p=%5EIPSA

looks like april, 2013 was the last time we got there.

But what is crazy is how fast we got there. We were at basically at 5 year low in January this year, at around 3,418.77. We are about 600 points from a new all time high on the IPSA, set back in 2010.

When you dig in to the ipsa however, it is a pretty broad based rally in most major Chilean stocks. lan is sitting on a like 72% jump this year so far, and 22% of that is this month. SQM is over 50%. Even among those bigger boys, those are not the biggest movers on the IPSA. They don't even make the top gainers list very often anymore (still most volume), because there are other components doing 5 - 15% jumps a day (looks like financials and investment companies are leading now).

All while the U.S. markets have been pretty much flat lining, and were even down today. It is a strange break. Normally the IPSA pretty much follows the lead of the U.S. and developed markets. If they are up, the IPSA is up. If they are down, the IPSA is down. there has been some sort of strange decoupling from the developed markets.

Now, as fun as that is, I am sure grandma (janet yellen) is going to piss all over this party, but fun while it last.

I am just not really getting where it is coming from or why.
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.


Return to “Chile Investment, business, and Money Issues”

Who is online

Users browsing this forum: No registered users and 11 guests