Don't Hurry into Peruvian Stocks

After tumbling last year, Peru's stock market is going gangbusters in 2009, gaining more than 101% through June 15. That is the best performance of any market in the world, according to Bloomberg. Rising prices for Peru's copper and gold and a trade deal with China have attracted substantial attention from money managers. And now U.S. investors are getting a simple way to bet on Peru's stock market. Exchange-traded fund sponsor Global X Funds, which already runs a Colombia fund, says its Peru fund will start trading in the next few weeks. Perfect timing? Maybe not. Deutsche Bank ( (DB)) equities strategist Guilherme Paiva says Latin American stocks have risen too quickly on hopes the world economy will pull out of the downturn. He expects a 15% across-the-board correction over the summer. Investors may want to wait that out.
Pressman is a correspondent in BusinessWeek's Boston bureau.

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