Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of mining company Compania de Minas Buenaventura
So what: The market is freaking out that newly elected Ollanta Humala, a nationalist candidate, will be bad for business and tax rates will go up for mining companies. In response, Humala says he will not implement Venezuelan-style socialist policies as the market fears.
Now what: Peruvian stocks have been hammered today and the stock exchange was halted after shares fell 9%. But if you believe Humala's economic advisor who said investors negatively "speculating now are simply going to lose their money," now might be a buying opportunity. Peru is growing quickly and Humala has talked a good game about letting private business flourish in Peru. Time will tell which side is right.
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