EPU plunge is a major opportunity

By Emerging Money>,

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Global miners that call Peru home or at least earn a significant chunk of their earnings there have taken a huge hit after the election. The EPU ( quote ) ETF that tracks most of the country's corporate giants plunged 14% on word that far-left candidate Ollanta Humala had indeed been elected president: While this looks like a major opportunity, it would also be good to at least consider the experience of Ternium ( TX , quote ), Cemex ( CX , quote ) and others in Venezuela that were nationalized by Hugo Chavez -- with whom Humala is often unfortunately compared. It is probably too soon to draw conclusions about what will happen in the future with the stock market or the impact that the measures implemented by the new president will have on the economy Most likely to be affected: the mining sector, given Humala's comments suggesting an increase in mining taxes. For now, these are still world-class companies in one of the hottest spaces out there. Some of the biggest: Southern Copper ( SCCO , quote ) and Buenaventura ( BVN , quote )

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
Referenced Stocks: BVN , CX , EPU , SCCO , TX

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