What do investors consider in the midst of uncertainty?

Faced with the growing inflationthe banks make efforts to control it by raising the interest rates and they will continue to do so. The World Bank considers that global growth will slow down by 2.9%, in this 2022; However, in June, the entity projected that in Latin America there are still countries that will grow and expand, expecting that the GDP per capita of the entire region will increase only 0.6% between 2019 and 2023.

Export revenues and the fiscal situation of some commodity exporting countries have benefited, but are part of a slower environment. In Peru, the increase in mining production could have been a guarantee; however, uncertainty has an impact on investment.

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For Adriana Cuéllar, country manager of Libertex Américas Peru, instability is not new to investors; especially for the big ones, who might think that there is no such thing as a safe, risk-free haven, because even the bond markets have fallen. However, for private investors there is a different margin of manoeuvre. “Those investors who develop in trading, have the possibility of having more stable havens when moving money in other countries, less susceptible to currency devaluation or the political situation.”, he points out.

Cuéllar mentions that beyond the type of investor, flexibility, short-term vision and risk management are key factors in their decision making. “The commitment to diversification in markets is more frequent and more so in sectors that are still profitable”, he maintains.

The Libertex Peru representative explains that there are two relevant factors for investors: sustainability and speculation. “Many large investors are allocating their assets responsibly, in the long term, valuing the type of companies and projects where sustainability -based on environmental responsibility, development of diversity and inclusion, among others- is strategic”indicates.

He added that speculation remains preponderant, given that, for individual investors -and even those who are already mobilized in digital environments-, speculation based on analytics is key.

“As is often the case in trading, uncertainty may not be a bad opportunity if you are thinking of investing or buying, at any rate; considering that market declines do not last forever and that sooner or later a bull market will return”, he points out.

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