Bolsa de Valores... Thoughts...

Okay... So, I haven't invested in the Colombian Stock Market... yet.... and wanted to get some feedback because I'm not finding to much tangiable information on their website... I know some of you on PBH do invest and wanted to find out what the current pulse of things are right now... Also, what are the rules to invest.. Do I need to live in Colombia, or just have an address in Colombia?.... Is there like an e-trade site or do they pull the money straight from my account?.... And banking CD's... are they still returning over 15%?....

If any of you have any info that would be great... Trying to make my trip in September fun and informative at the same time.....

I'm working on getting my cedula in the U.S. right now, so at least I'll have that available...

Any info is appreciate...

Cheers....

By msaucey on Jul 6, 2007, 15:45 in Friendly Talkzone.

Tinto (Moderator) says on Jul 6, 2007, 16:03:

I don't know where this talk of 15-18% interest on interest bearing instruments comes from. Colombia's short term and long term rates haven't been that high in several years. I suppose if one includes currency COP appreciation vs. your native currency you might be able to reach that number, but that could be luck or a one time thing and it's definitely subject to reversal.

fecherklyn says on Jul 6, 2007, 17:01:

Hi msaucey,

The Colombian Central bank rate is 9% at the moment after a number of successive hikes to counteract growth in inflation. That is also about the top rate you can get for CDT's of 180 to 270 days. You might get a slightly higher rate from some of the local finance companies but this also increases your risk.

I have not tried the local stock market and regret not doing so. By the time you take into account the increase in stock market values over the last couple of years PLUS the impressive exchange gains you would have made if investing via other currencies....it would have been difficult to better anywhere else in the world. However, whether or not this can continue from todays already inflated levels is a big question.

rocinante says on Jul 7, 2007, 11:37:

Peso is losing ground - could be the 180 degree turn-around back to 2,300

"World economic indicators point to a democrat winning 2008. It will surely be Obama. Peso 1400 by November" Feb 5, 2008

miamimike says on Jul 7, 2007, 21:52:

Best Central Bank Interest I've seen in the last few years in the Americas was in the DR,,for a while it hovered close to 60% on 12 month CDs. Now its down around 12-17% depending on what bank, not necessarily the CB! These were in Peso accounts btw.

Lets say for argument sake you had US$100k in 2000. The exchange rate hovered around 16 to 1. If you exchanged your money back then you had RD$1.6 Mil. Banco Popular was paying around 14-16% on CDs (if I recall correctly)

1.6 * 15% = 1.84 mil (2001)
1.84 * 15% = 2.116 mil (2002)

In 2002 banks were paying 19-21 % on CDs

2.116 * 20% = 2.539 mil (2003)

***in 2003 BC at close to 60%******

2.539 *55% = 3.935 (2004)

Exchange rate in 2004 is at 29 to 1 which would be
3,935,000 / 29.5 = ~US$133k

Earning US$33k in 4 years is not equivalent to loosing your shirt! It's equal to making ~8% on your US$100k every year for the past 4 years. Some would consider that quite a respectable return. Albeit, it was LUCK to the tenth degree.

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