Credicorp Capital issues investment recommendations in a context of global economic uncertainty

In a context of global economic uncertainty, the firm Credicorp Capital has issued investment recommendations for both the Peruvian market and foreign markets. According to the company's portfolio solutions vice president, Jorge Beingolea, there are opportunities and trends that investors should consider to maximize their profits. Regarding equity, Credicorp Capital suggests having investments in Latin America, considering the low levels of valuation of securities in the region. Beingolea pointed out that eventually, it is expected that the Chinese Communist Party will implement stimulus measures that will benefit its real sector, positively impacting China's economic sphere of influence, which includes Latin America. In the case of Peru, the low weighting of local assets in emerging markets is highlighted, suggesting growth opportunities for investors. Specifically, overweighting the mining sector is recommended, considering a possible recovery of the Chinese economy and the consequent rebound in commodities, especially copper. In terms of fixed income, the expectation is that the Central Reserve Bank of Peru will lower its interest rate faster than expected, which could favor economic activity. It is suggested to lengthen portfolio duration while maintaining a high credit quality of bonds. Outside exposure to the region, Credicorp Capital also considers it appropriate to have a slight overweighting in U.S. equities, given the strength of the dollar. In the fixed income market, exposure to credit risk in emerging markets is preferred, where there are companies with better credit quality. In summary, despite global economic uncertainty, with the U.S. possibly avoiding a recession and China emerging as an economic engine, favorable returns are expected in global assets. Although equity returns may not be as high as last year, a positive outlook is foreseen for fixed income, especially when central banks in developed countries begin to lower their interest rates.