Seeking Alpha

The Peru ETF (EPU -9.5%) is diving following Ollanta Humala's victory in that country's...

The Peru ETF (EPU -9.5%) is diving following Ollanta Humala's victory in that country's presidential campaign. Credicorp (BAP -10.3%), the nation's largest banking institution, is following suit, as is Southern Copper (SCCO -8.5%), which has its major interests in Peru.
Comments (3)
  • Duude
    , contributor
    Comments (3358) | Send Message
     
    Peru has had the fastest growing economy in south america over the last 10 years. Additionally, they've moved a large quadrant of their people into middle class status. Apparently, it was too much for them. So, they've decided to go the way of Venezuela. What a sorry state.
    6 Jun 2011, 10:04 AM Reply Like
  • losbronces
    , contributor
    Comments (617) | Send Message
     
    Unfortunately, the more centrist candidates split the vote in the first round. That left Fujimori against Humala. Humala spent more money that any other candidate in the first round and much more than Fujimori in the second round. He ran a better campaign (in my opinion) using the same Brazilians that helped Lula get elected. He likely would have lost against Toledo or CastaƱeda but they didn't make it to the final round. Also, he continually modified his plan of goverment (a third version was filed) to show that he is not so radical (he eliminated modifying the constitution and the scope of nationalization of industry) in order to sway more voters to him. He received support from the first Peruvian Nobel Prize winner Mario Vargas LLosa (who in the end stayed in Spain and didn't vote) and former president Toledo. Expect to see Toledo as the embassador to the U.S.

     

    The other side to this is that if he would have lost the vote, he would have tried to sieze power anyway. His party, Gana Peru, was warning of fraud by the current government in the election. This was done for the sole purpose of justifying a takeover by force. At least we were spared that debacle.
    6 Jun 2011, 10:27 AM Reply Like
  • losbronces
    , contributor
    Comments (617) | Send Message
     
    Add BVN to the list of Peruvian companies dropping. BVN is mainly gold, but down 10% already.
    6 Jun 2011, 10:07 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|