Despite the country’s value proposition and economic growth, Colombia is still the favorite market for some strategicists and fund managers, although there are some geopolitical tensions with the United States. US President Donald Trump threatened an immediately tariff on Sunday, because it turned to planes that were expelled from immigrants. After Colombia reached an agreement with the United States on Monday to accept immigration, the White House retreated from its sanctions to avoid potential trade war. This geopolitical boundary has not changed the bullish view of Alps macro emerging markets and Chinese strategist Yan Wang. Wang said to CNBC Pro on January 27: “The weekend event shows that Colombia has effectively passed the ‘Trump test’. I expect bilateral relations to deteriorate.” As of November 2024 Compared with the goods, the data of the American Population Census Bureau is quoted. Wang pointed out that this shows that Colombia “should be relatively isolated from Trump’s trade policy.” Although Wang’s prospects for Colombia bullish, he acknowledged the country’s backwind by the country. Nevertheless, he said: “Nevertheless, it may be better than its emerging markets.” Colombia stock “is one of the cheapest stocks in emerging markets. COP (Colombia Peso) is deeply underestimated, and Columbia’s bond yields are the highest. Wang said that he is Colombia’s overweight stocks and bonds. He has a long position in the 10 -year Colombian government bonds. As of January 27, the yield is 10.96 %. Due to the increasing interest in investors in South American countries, his strategic location, favorable tax policies, growing consumer demand and expanding economy. According to the World Bank data, the Columbia economy is expected to increase by 1.5 % in 2024, from 0.6 % in 2023. Banco de La Republica, a central Bank of Columbia, predicts that economic growth will grow further in 2025, and this year’s GDP will increase by 2.9 %. These factors have attracted the attention of other fund managers. “Colombia is very small and easy to be ignored. But I like-I think this is an interesting value point, which is particularly optimistic about this in the second half of this year,” Malcolm Dorson, a senior investment portist in Global X ETFS, told CNBC Pro this week. “The MSCI Colombia Index trades at a dividend yield of 8.32 % with a book value of 0.84 times. This means that you can immediately buy Columbia shares and get 8 % of the dividend yield until (may wait) until political change (expected) ) In March 2026, “he refers to the Columbia presidential election. According to FactSet data, the MSCI Columbia Index (the performance of large and medium -sized stocks on the Columbia market) has risen by 28.91 % over the past 12 months. In order to compare it, the MSCI emerging market index (including Brazil, China and India, which have captured large and medium -sized stocks), rose by 13.64 % at the same time. Dorson is now playing Columbia’s growth story with Ecopetrol, the country’s largest oil company, and financial institution Bancolombia. Both stocks are listed as the US stock EC and CIB on the US stock EC and CIB on the Columbia Stock Exchange and trade. According to FACTSET, Dorson’s betting on the company is a bit against the trend. All 12 analysts cover the ADR of ECOPETROL, which gives sales or holding rating. At the same time, 6 of the 7 analysts covering Bancolombia ADR gave sales or holding rating. -CNBC’s Jesse Pound contributed to this report.
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