Global X MSCI Colombia Price, Forecast, Insider, Ratings, Fundamentals & Signals

Here is a retirement portfolio for the year 2024 that investors can pursue.

The global economy faces significant uncertainty. High-interest rates, persistent inflation and geopolitical crises all threaten to roil financial markets.

After the steepest set of rate hikes in LatAm over the last two years, Colombia is finally poised for a rate cut cycle. Easing inflation and an improving fiscal position bode well for the Colombian cost of capital, along with the Petro government's weakening reform push. With equities still very cheaply priced heading into future monetary easing, the risk/reward on MSCI Colombia ETF is looking a lot better.

Colombian equities have taken a hit this year amid energy price declines. The political turbulence in recent weeks hasn't brightened Colombia's prospects either.

The MSCI Colombia ETF is a low-cost investment vehicle, allowing US investors exposure to Colombian equities. The outsized banking exposure should benefit from more monetary tightening, but the rest of the SOE-heavy portfolio is exposed to growing fiscal risks.

Are you looking for emerging markets ETFs to buy? For starters, Chinese stocks are on fire.

Since my August note, GXG has horribly underperformed the S&P 500. The article delves into the factors that contributed to GXG's decline, including political issues that dented the Colombian peso despite tailwinds from hawkish monetary policy.

Not all emerging markets offer the same opportunities for investors.

Economies of Latin America and Caribbean have continued their strong post-pandemic rebound, but the winds are shifting as global financial conditions are tightening and commodity prices are reversing their upward trend, while inflationary pressures persist. The reopening of contact-intensive sectors, especially hospitality and travel, the unwinding of pandemic pent-up demand, and still favorable external financial conditions supported a solid expansion in the first half of the year, allowing services to catch up with manufacturing, and employment to reach pre-pandemic levels.

At first blush, GXG looks like an overlooked bet on global inflation. The Banco de la República has been decidedly hawkish, with a 150 bps rate increase delivered just recently. This is a boon for the financial sector.