The Chilean markets are a most attractive option for investors. The stock valuations are showing the most attractive gains in six years. The MSCI Chile index price to earnings ratio, which typically has a 33% premium to the other Latin American average, is being offered at a discount. The average premium will be discounted by -11% versus the average of 50%. This is the first time a discount has been offered since 2009. The Chilean economy is forecasted to grow 2.7% in the coming year while their neighbor Brazil is expecting a shrink of 1.3% to their economy.
BUYING AND SELLING: Do You Invest During The Summer Months?
Many analysts suggest forgoing summer due to long held beliefs that no ones were trading stocks during the summer months of June, July, and August. Market data has shown that these summer months are prime for lively trading and see as much action as the end of the year traffic. Market watchers suggest that savvy traders spend the summer months rebalancing their portfolio and get to the business of trading like they would during any other time of year.
STOCK TIPS: Technology and Consumer Goods Are Big Buys
A panel of stock market contributing writers suggested that investors consider investments in consumer good and technology sector stocks. They offer the best buy-in opportunity for immediate entrance into investments.
- Michael Kors (NYSE: KORS)
Michael Kors stock has been struggling late due to anxieties regarding lower than expected store sales in the previous quarter. The shares have dropped over 40% this year alone. In May, the retailer fell another 24% making it only 1% above the 52 week low for the stock. While this may seem horrible, it’s an excellent opportunity for an investor seeking a longer-term arrangement with a typically well performing brand. The brand has invested in their stores. They are making arrangements for international openings and developing a more robust digital footprint. All signs point to a rebound for this popular brand.
- Netflix (NASDAQ: NFLX)
The digital media company has lost nearly 9% of its gains from a recent highest rating. The stock is starting to be shucked off by many of the analysts. They are downgrading the stock and fear some of the innovative investments being made by the company. Netflix has continued to pump large amounts of capital into their original content. They are also planning to expand their brand into global markets. While many investors wait to see how the dust settles on all these fronts, buying during this momentary dip could be a great long-term investment that provides big gains in the end.