Looking Outside the U.S.
Upcoming cover of the Economist provides great insight into the sentiment that’s out there. This more often than not means it’s time to look elsewhere. In this case, I’m looking outside of the U.S.
The ETF tracking Peruvian companies is approaching a level last seem over 6 years ago. Base breakout? Possibly! I’m getting involved on a break and hold of $45.
Within that ETF is an interesting company. Intercorp Financial Services Inc. ( IFS 0.00%↑ ) provides banking, insurance, and wealth management services for retail and commercial clients in Peru. The company operates through three segments: Banking, Insurance, and Wealth Management. A 2019 listing that just hit the AVWAP from IPO, it’s roughly a 2% holding in EPU 0.00%↑ . We can see that it’s been unable sustain price support above this level in the past.
I think it’s one worth watching. EPU 0.00%↑’s top holdings have been huge winners year to date. We don’t yet know if EPU 0.00%↑ is indeed going to break out or fail at this level, but I suspect that if it does in fact break out, we will see the smaller components playing catch up.
