Chile Wealth, Inequality, and International rankings

Chile Investment, how to invest in Chile, what to watch out for when investing, economic issues, currency exchange in Chile, and more.
mem
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Re: Chile Wealth, Inequality, and International rankings

Post by mem » Wed Oct 09, 2019 10:03 am

admin wrote:
Fri Oct 04, 2019 9:19 am
so, some more about where the price of copper needs to go, to have a chance at the "carbon" targets:

https://amp.ft.com/content/b71d2cde-da1 ... 1f8d77a45b

$8,000 a ton to hit the 2030 targets.

$20,000 a ton to hit the "Greta" target, of zero emissions by 2025.

interesting point at the end. If humans dont hit those targets, and instead just try to adapt, that requires a whole lot more copper too. the example they use is Europeans buying air conditioners. :lol:
If it gets even close to 20k the old 50 peso coins will be worth more than twice its face value in copper...right now its face value is 0.07 usd and its melt value is 0.035 usd.
Of course the usd/clp dynamic will change on it's own with copper skyrocketing

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Re: Chile Wealth, Inequality, and International rankings

Post by admin » Thu Oct 10, 2019 8:48 am

so, 2019 global competitiveness report is out.

chile held the # 33 spot, and #1 in latin America.

you can download the full report here:
https://www.weforum.org/reports/how-to- ... ity-growth

what is eye catching, is chile holds the top spot in the world for economic stability.

I thought that was strange, but if you think about it when was the last time chile had a proper economic crisis or even recession? like the 90's?

everyone else I can think of has been through some sort crisis (multiple times) since then. Chileans might start moaning about the economy not doing well from time to time, but it is typicaly complaining that the economy is growing at just 2 or 3%, rather than 5+ %.

They really take the overall stability of the country for granted.

without stability, raising people out of poverty and fixing all the other issues with the country is an impossible moving target.
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Re: Chile Wealth, Inequality, and International rankings

Post by PXYC » Thu Oct 10, 2019 2:52 pm

admin wrote:
Mon Oct 07, 2019 12:24 pm
direct foreign investment hits highest in 5 years.

https://www.df.cl/noticias/economia-y-p ... 15251.html
Interesting figures.
I don't understand where all this investment is coming to though, any clue? The article mentions capital, does that mean buying stakes at existing Chilean companies? If that's the case, it's also probable that the seller transfers to USA the money received from the sale, so gain some lose some for Chile..

I must say however that lots of companies from my homecountry (Portugal) always mention Chile when speaking of their expansion plans. Just this year Transemel was sold to REN, a private portuguese energy company (it's the second company they buy in Chile in less than 3 years). Another portuguese company that already owns colombian supermarkets Ara has also mentioned Chile for their expansion plans.

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Re: Chile Wealth, Inequality, and International rankings

Post by admin » Thu Oct 10, 2019 4:11 pm

lots of acquisitions of existing chilean companies by foreign investors. SQM by the Chinese, Lantam stakes by delta and quatar airlines, etc are a couple big ones that come to mind. there is a lot of investment in various renewable projects, etc. the pension and sovereign funds seem to really like the the toll roads and similar.

bond offerings by chilean companies, both in local UF and foriegn currency are also hot due to investment grade credit ratings. lots of Chilean companies are issuing new bonds for longer duration at lower interest rates.

chile is a small economy. does not take a lot of money to move the needle.

I am not sure how they are counting that investment number, but keep in mind a lot of the debt issued by chilean companies, is being used to acquire companiesand expand in to other countries.

BCI bank just acquired another bank in the United states. entel, fallabela, parque aruco are all moving in to peru and colombia full steam. copec bought a copper mine in peru. SQM bought in to an Australian lithium mine. just a few recent deals i can think of.

so that money may not necessarily be sticking around, as m7ch as chile is acting as a safe proxy to get exposure to the nieghborhood.
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Re: Chile Wealth, Inequality, and International rankings

Post by admin » Mon Oct 14, 2019 9:28 am

well, here is another 2.2 billion acquisition by the Chinese, and cornershop just got bought by uber last week.

https://www.df.cl/noticias/empresas/ene ... 75424.html

as high profile as those are, there is I believe a lot more investment being done rather quietly or they are simply not as sexy. companies, especially mining companies, that are already in the country are putting a lot more money into expanding their operations here.
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Re: Chile Wealth, Inequality, and International rankings

Post by admin » Mon Oct 14, 2019 9:46 am

so, there is something else that I realized this morning, after reading article number 2 million+ on 'how to invest in EM' stocks, bonds, etc, regarding the prevalence of chile.

9 out of 10 articles skip chile. I think part is it is not as sexy or big as the Asian economies. part is, the metrics are too good to include as an EM country when running a country screener; but I think, the biggest reason is simply it does not fit the narrative 'all EM countries are risky and unstable' that is being pushed.

yet, at the same time, you almost never see chile listed alongside the developed country articles. Like chile is in some netherworld catagory between developed and developing country, that they as yet to properly name. yea, I have seen various attempts at ranking chile along with a couple others such as an "advanced developing" country, but they never seem to get wide use in financial circles to compare apples to apples.
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Re: Chile Wealth, Inequality, and International rankings

Post by tiagoabner » Mon Oct 14, 2019 11:15 am

admin wrote:
Mon Oct 14, 2019 9:28 am
(...)

I believe a lot more investment being done rather quietly or they are simply not as sexy.
If your business doesn't depend on public recognition or widespread use by the masses, it doesn't make sense to advertise your deals beyond what is strictly needed. Specialized media may follow the money, but it won't show on mainstream media.
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

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Re: Chile Wealth, Inequality, and International rankings

Post by admin » Mon Oct 14, 2019 12:27 pm

tiagoabner wrote:
Mon Oct 14, 2019 11:15 am
admin wrote:
Mon Oct 14, 2019 9:28 am
(...)

I believe a lot more investment being done rather quietly or they are simply not as sexy.
If your business doesn't depend on public recognition or widespread use by the masses, it doesn't make sense to advertise your deals beyond what is strictly needed. Specialized media may follow the money, but it won't show on mainstream media.
like the other day i seen a PR headline from I think BHP Billiton they were going to drop another 1.4 billion dollars in to expanding their operations in chile. even having a special geeky interest in the subject, I never even opened the article. If you think about it, 1.4 billion is not that much in the global mining sector, probably not even that much for BHP Billiton, that is a good chunk of change for such a small economy like chile's. point is, those sorts of investments are going on all the time under the press radar in chile.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
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From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

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