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Late to the party

Returns this year have been uneven and volatile, and the temptation is to jump quickly onto the hottest trend. But timing matters: in a fund that returned 102.6%, the average investor earned just 2.1%. Following the crowd often means arriving late to the party.

Aug 11, 2026 José Ignacio Villarroel

By José Ignacio Villarroel

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Expectations, expectations, expectations

It's been a good year for risk assets, but performance across sectors and regions has been highly uneven. Amid the AI boom the market has raised the bar: strong earnings growth is no longer enough to deliver returns, because expectations rule.

Jul 30, 2026 José Ignacio Villarroel

By José Ignacio Villarroel

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Pension reform: estimated effect on the local market

Chile's pension reform replaces the five multifunds with ten generational funds in April 2027. Using public data, we estimate how AFP demand for Chilean assets shifts: favorable and stable for local equities, and smaller and sensitive —it can flip sign— for local fixed income.

Jul 27, 2026 Gonzalo Reyes

By Gonzalo Reyes

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Mega IPOs, mega returns?

Initial public offerings (IPOs) are back in fashion in 2026, led by the most disruptive global companies. SpaceX, with its successful space trips, and Anthropic, along with OpenAI's eventual listing, which have established themselves as AI leaders, promise record amounts of capital raising in public markets.…

Jun 30, 2026 José Ignacio Villarroel

By José Ignacio Villarroel

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The revival of emerging markets

Emerging markets don't enjoy the best reputation in the investment world, at least in recent history. Over the past 10 years, the average return of this asset class has been 7.8% in dollars, only a little more than half of the S&P 500 in the same period (14.7%). In addition, on 2…

May 28, 2026 José Ignacio Villarroel

By José Ignacio Villarroel

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The rise in oil is good for the market

The war with Iran marked a turning point in market performance. The rise in the price of oil and energy in general raised inflation expectations and weakened growth projections amid geopolitical uncertainty, leading stock markets to a decline of more than 10% in…

Apr 30, 2026 José Ignacio Villarroel

By José Ignacio Villarroel

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Diversifying geopolitics

Geopolitics has taken the market's focus. The U.S. and Israeli attacks on Iran caused uncertainty to rise and risk assets to suffer corrections in their valuations, although probably to a much smaller extent than most analysts anticipated.

Mar 30, 2026 José Ignacio Villarroel

By José Ignacio Villarroel

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The case against the bubble

Excitement about AI companies isn't stopping. If investment in these technologies in 2025 exceeded US$1.7 trillion, by 2027 it could exceed US$3.3 trillion according to specialized reports. One of investors' big concerns is that we are facing a bubble, similar to what…

Feb 27, 2026 José Ignacio Villarroel

By José Ignacio Villarroel

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Markets at all-time highs: should we invest?

When we receive a significant sum of funds to invest, whether from the sale of a business, a bonus, the sale of a property, an inheritance or another liquidity event, we face the question of whether to invest it all at once or wait for a “better moment.” This dilemma is particularly exacerbated when valuations are high…

Feb 2, 2026 Juan Martín Llovet

By Juan Martín Llovet

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What 2025 didn't bring

With each year-end come the summaries and potential lessons to reflect on and, as far as possible, inform investors going forward. While there are things that happened in 2025 as projected, such as the Fed's gradual rate cuts or Trump's trade war (announced during the campaign to some…

Jan 8, 2026 Damián Gelerstein

By Damián Gelerstein

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Alternative assets under scrutiny

Investment in alternative funds has grown very significantly globally. These instruments provide exposure to private capital and debt markets—that is, ones not traded on open exchanges—under regulated structures and expert management by specialized managers.

Dec 29, 2025 Gonzalo Reyes

By Gonzalo Reyes

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After-tax returns

Investment management requires finding the solution to a highly complex problem involving multiple variables. Some are outside our control, such as market performance, but others—like the impact of taxes—can be managed and have a relevant impact on the final performance of portfolios.

Nov 28, 2025 Gonzalo Reyes

By Gonzalo Reyes

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The new «smart money»

In the market, at a simplified level, two types of investors are traditionally defined: professionals (fund managers, institutions, etc.) and individual or retail investors; “smart” and “dumb” money respectively. However, there are signs this definition could be becoming obsolete.

Oct 29, 2025 Cristóbal Mackenzie

By Cristóbal Mackenzie

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A mountain of doubts

July was a good month for risk assets, thus completing a first seven months of the year of strong market performance despite the challenging global context. A priori, all the risks have evolved for the worse: the tariff war deepens, the Fed seems to maintain its restrictive stance for now, the deficit…

Aug 26, 2025 Damián Gelerstein

By Damián Gelerstein

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Geopolitics in the market

Just when the economic uncertainty triggered by the trade war and economic tariffs seemed to be fading, geopolitics took over the markets' agenda in recent weeks. The direct U.S. intervention in the conflict between Iran and Israel worried the international community due to the greater risk of escalation and involvement…

Jul 1, 2025 Gonzalo Reyes

By Gonzalo Reyes

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Buffett's numbers

At 94, Warren Buffett, the undisputed best investor of all time, announced that he will step down as CEO of Berkshire Hathaway at the end of 2025. Undoubtedly, this marks a before and after for the financial markets of recent years, which kept the “Oracle of Omaha” as a constant reference.…

May 26, 2025 Cristóbal Mackenzie

By Cristóbal Mackenzie

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The pension reform in the market

Many years and several governments had to pass to finally have a pension reform in Chile. The higher contribution to individual accounts will bring significant flows to the local capital market (pension funds invest approximately 7% in Chilean stocks) and investors seem to take this news very…

Mar 4, 2025 Ivo Kovacevic

By Ivo Kovacevic

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Artificial return?

It's been a relatively uneasy start to the year. To the more contractionary bias of monetary policy in the U.S. are added the tariffs announced by the Trump administration on its main trading partners. Even some of the most “obvious” theses of recent years are being challenged. If we knew one thing, it was that in AI the leadership…

Feb 5, 2025 José Ignacio Villarroel

By José Ignacio Villarroel

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The future is uncertain… but it doesn't matter

We're at the time of year when projections for the next 12 months take over the headlines in the financial press. The most reputable investment institutions make their projections for the 2025 close of the S&P 500, the IPSA and the dollar's value, among others. When examining the performance of these projections,…

Jan 29, 2025 Ivo Kovacevic

By Ivo Kovacevic

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The good, the bad and the ugly

It's inevitable to take stock of what this year was in terms of market performance and the effect it had on investors. The good: Markets once again delivered very good returns. Global stocks rose 21% in dollars, fixed income between 2% and 9% depending on risk profile…

Dec 17, 2024 Cristóbal Mackenzie

By Cristóbal Mackenzie

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It's not just air

This year has been a happy one for investment portfolios. Not only are stocks, on average, more than 15% up so far in 2024 and fixed income also up between 3% and 6% (all performance in dollars), but the exchange rate is almost 10% above…

Nov 7, 2024 Cristóbal Mackenzie

By Cristóbal Mackenzie

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The key is portfolio efficiency

When investing, there are things over which we have little control: the level of the exchange rate, the regulatory framework, etc., and others that do depend on us, such as the choice of vehicles (direct stocks/bonds, mutual funds, investment funds, etc.), the structure for investing—directly as an individual or setting up an investment company—among…

Oct 2, 2024 Ivo Kovacevic

By Ivo Kovacevic

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No more time deposits?

The past few years have been unusual in investing. First, we had inflation again, something the Western world hadn't experienced in over 40 years. The orthodox reaction of central banks was to raise rates to levels not seen in years. Thus, short-term interest rates became…

Aug 22, 2024 José Ignacio Villarroel

By José Ignacio Villarroel

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2024 elections: Biden or Trump?

Last week Donald Trump was found guilty of 34 counts of falsifying business records to conceal payments to an actress in 2016. He is accused of leading a plan to influence the elections. He faces up to 4 years in prison and this makes him the first former U.S. president convicted of…

Jun 24, 2024 Gonzalo Reyes

By Gonzalo Reyes

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The Magnificent 7

In the U.S. stock market, for some years now there have been companies that stand out for their exceptional performance and have been dubbed “The Magnificent 7.” Leading innovation and consolidating the development of new industries, companies such as Google, Amazon, Facebook, Tesla and Nvidia are undoubtedly setting the pace. A couple of figures: Just…

Apr 30, 2024 Damián Gelerstein

By Damián Gelerstein

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Buy dollars at 950?

Right now, implementing a portfolio is not comfortable. The U.S. stock market is very close to its all-time high, fixed income has been more volatile than usual and the exchange rate is around 950 pesos. The key question is: Does the high value of the dollar affect the performance of a diversified portfolio?…

Mar 19, 2024 Damián Gelerstein

By Damián Gelerstein

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Breaking records

The S&P 500 index once again “broke” its all-time high, surpassing 5,000 points. Thus, investors focus on the U.S. stock market and cautiously watch its future. But how relevant is reaching a new record? First, the S&P 500 is calculated based on the price changes of…

Feb 15, 2024 José Ignacio Villarroel

By José Ignacio Villarroel

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UF or pesos?

It's hard to think of a more important topic for global markets over the past 24 months than inflation. Central banks' reaction was decisive, sharply tightening monetary policy by raising reference rates. Thus, the market placed its bets. At the start of the year and after some positive surprises, the…

Dec 13, 2023 Gonzalo Reyes

By Gonzalo Reyes

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The constitutional penalty

It has been a complicated second half for local risk assets. After the first 7 months where returns exceeded 20%, today the IPSA is below 7% in CLP and 0% in USD. Thus, we've clearly fallen behind the world and emerging markets, which have…

Nov 16, 2023 Cristóbal Mackenzie

By Cristóbal Mackenzie

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«Bad» good news.

2023 has been marked by a high level of global economic uncertainty. Greater persistence of inflation, signs of a more contractionary monetary policy than anticipated in the developed world and latent recession risks are risks in investors' focus. Thus, for some, we face a…

Oct 17, 2023 Ivo Kovacevic

By Ivo Kovacevic

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Fixed income, unfinished business

As the third quarter of the year draws to a close, world stock markets exceed 14% returns in dollars, equivalent to the IPSA's performance, the latter in CLP. All this in a context of much more controlled inflation, barely above 3% in Chile and around 3.4% for the U.S. so far in 2023.…

Sep 20, 2023 Ivo Kovacevic

By Ivo Kovacevic

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The expected cycle

We are finishing a new corporate earnings season in the U.S. and more than 94% of S&P 500 companies have already reported. Sales barely grow (+0.4%) and earnings fall 3.4% in the second quarter. Obviously, companies earning less than in previous periods is not a good sign; however,…

Aug 22, 2023 Cristóbal Mackenzie

By Cristóbal Mackenzie

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Chronicle of a rate cut foretold

The start of the year has been very positive for investments, especially risk assets, which practically erase the sharp global declines of 2022. A different reality is faced by Chilean fixed income which, on average, barely reaches 2% over 6 months this year. Unlike time deposits, the…

Jul 27, 2023 José Ignacio Villarroel

By José Ignacio Villarroel

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The survival of the (digitally) fittest

By Damián Gelerstein: CEO of Abaqus. According to PwC's latest Asset and Wealth Management report, it is estimated that by 2027, one in six existing asset and wealth management organizations will be absorbed or will disappear. The financial industry faces challenges of great magnitude that surpass any previous era.…

Jul 19, 2023 Damián Gelerstein

By Damián Gelerstein

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Referee, call the game

We're on the verge of closing the first half of 2023 and global stock markets exceed 10% returns in dollars while Chilean stocks reach 19% in pesos. On the bond side the result is more modest: locally we've seen returns somewhat below 2% while in…

Jun 27, 2023 Ivo Kovacevic

By Ivo Kovacevic

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100 meters or a marathon?

Nearly 5 months into 2023, it is shaping up to be a positive year for financial markets, though not free of volatility. In this context, one type of investment stands out as very attractive: time deposits. After the Central Bank's rate-hike cycle, these instruments can reach returns…

May 31, 2023 José Ignacio Villarroel

By José Ignacio Villarroel

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Flipping a coin

2022 was a year to forget. Not only because of the ~20% drop in stock markets but also because of the double-digit correction in the fixed-income market. But this is only the return of the benchmark indices. Although over the past 20 years we've seen exponential growth…

May 3, 2023 Damián Gelerstein

By Damián Gelerstein

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The S&P 500, held to maturity

Financial markets are, at times, thankless. The speed at which new information is incorporated exceeds our ability to process it, and the resulting volatility investors face is often orders of magnitude greater than what they're comfortable with in order to stick to a long-term plan. The temptation…

Apr 4, 2023 Gonzalo Reyes

By Gonzalo Reyes

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How to invest in AI?

Innovation is one of the most important points for economic growth and global competitiveness. Investing in new trends is probably a desirable goal for many. However, positioning yourself in the companies at the technology frontier is complex and is typically reserved for high-net-worth and sophisticated investors. There is…

Mar 7, 2023 Damián Gelerstein

By Damián Gelerstein

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A winning horse doesn't repeat?

The cost differential between active and passive funds is a parachute that's hard to drag over the long term. Much is heard about forecasts and estimates of possible winners, or where it would be advisable to overweight an investment portfolio to try to maximize its returns. But if we look at the performance of the funds…

Feb 14, 2023 Nicolás Urcelay

By Nicolás Urcelay

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A trip through time

Let's do an exercise. Let's go back twelve months in time. Sector bets for the U.S. stock market? Technology and real estate. Any sector to leave out? Energy. The arguments are quite direct: in a post-pandemic world, Netflix, Zoom, Spotify, etc. are surely irreplaceable in our routines. On the other hand, home prices reached all-time highs…

Jan 10, 2023 Gonzalo Reyes

By Gonzalo Reyes

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2022 Annual Report

Below you can download the annual report from Abaqus's investment team. Download here [pdf-embedder url=»http://abaqus.cl/wp-content/uploads/2023/01/Reporte-Anual_-Abaqus.pdf« title=»Reporte Anual_ Abaqus«]

Jan 4, 2023 Gonzalo Reyes

By Gonzalo Reyes

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Soft Landing

As of Friday's close, 85% of S&P 500 companies had reported their Q3 results. 70% of companies posted earnings and sales above market expectations. Earnings and top-line growth reached 2% and 10%, respectively. All of the above occurs…

Nov 15, 2022 Cristóbal Mackenzie

By Cristóbal Mackenzie

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More important than the Fed?

Markets give no respite. After a promising start to October, we are once again at the year's lows. In a context of multiple sources of volatility, there is one topic that seems to draw all eyes above the rest: the Fed's rate hikes. It makes sense. When the reference rate rises, the…

Oct 13, 2022 Damián Gelerstein

By Damián Gelerstein

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Looking at the portfolio half full

With August closed, 2022 is shaping up to be one of the worst years in terms of returns for international markets. Although after an exceptional July (+9% for the S&P 500 in the month) it seemed the trend was reversing, the last 4 weeks revived sharp declines and renewed volatility in…

Sep 20, 2022 Gonzalo Reyes

By Gonzalo Reyes

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Is the worst over?

2022 has been a complex year for investment portfolios. In mid-June, the S&P 500—which groups the most important U.S. companies—was posting declines of more than 23% while the Nasdaq showed a 32% correction. These figures place this year among the 3…

Aug 22, 2022 Ivo Kovacevic

By Ivo Kovacevic

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Diversification, now more than ever

What happened with GME will inspire more than one book and perhaps a movie, but it's important to look beyond the narrative to draw lessons when investing.

Jul 21, 2022 José Ignacio Villarroel

By José Ignacio Villarroel

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A whiff of recession

The current market narrative could be summed up like this: inflation is proving more persistent than expected, central banks (particularly the Federal Reserve) will have to raise interest rates more and faster than projected a few months ago, and this would hurt economic activity, inducing a recession.…

Jun 23, 2022 Cristóbal Mackenzie

By Cristóbal Mackenzie

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The return of fixed income

In financial terms, the past few years have been very complex for low-risk investors locally. The traditional recipe of investing in local bonds gradually turned into a roller coaster. Chilean fixed income always presented two great attributes: safe-haven behavior—that is, rising in negative market moments…

May 26, 2022 Ivo Kovacevic

By Ivo Kovacevic

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Structure, not forecasts

2021 was a good year for investments globally and particularly for the Chilean investor who had dollar exposure. As the year ended, there were certain consensuses that seemed obvious to anyone wanting to structure a portfolio. Let's review the most common ones and their performance so far in…

Mar 31, 2022 José Ignacio Villarroel

By José Ignacio Villarroel

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Markets and wars

Russia's invasion of Ukraine has shocked the whole world. Putin launched a military campaign that is already causing many casualties (including civilians) and that, for now, does not seem to have a clear way out. NATO has responded by sanctioning Russia: limiting access to credit, freezing assets and bank accounts and restricting exports,…

Mar 3, 2022 Cristóbal Mackenzie

By Cristóbal Mackenzie

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The Super Bowl market

This weekend the LVI edition of the Super Bowl is played, the second most-watched team-sports event in the world (behind only the UEFA Champions League final). In it, the NFL's two conference champions face off in a grand final. Its size…

Feb 11, 2022 Gonzalo Reyes

By Gonzalo Reyes

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The setback of the pension multi-funds

2021 was a complex year for investors in Chile. Despite a very positive global backdrop for risk assets, the Chilean stock market closed the year with meager gains of around 3%. Meanwhile, the CLP depreciated more than 16% and local bonds fell around…

Feb 3, 2022 Damián Gelerstein

By Damián Gelerstein

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The S&P 500's 2021

After an extremely volatile 2020 for markets globally, 2021 was a year of stabilization and relative calm, especially in the U.S. The S&P 500, which groups the most important U.S. companies, returned 28.7% last year including dividends. How does what we saw over the past 12…

Jan 6, 2022 José Ignacio Villarroel

By José Ignacio Villarroel

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Robin Hood vs. Goliath

What happened with GME will inspire more than one book and perhaps a movie, but it's important to look beyond the narrative to draw lessons for investing.

Oct 26, 2021 Damián Gelerstein

By Damián Gelerstein

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Markets and populism in Latin America

The region once again gets tangled in policies that generally succeed in harming the elite, but fail in their stated purpose of improving common welfare.

Oct 25, 2021 Ivo Kovacevic

By Ivo Kovacevic

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Investing step by step?

When investing for the first time, should you do it all at once or spread out multiple purchases over time? Does it matter if stocks are “expensive” or “cheap”? Let's see what the evidence says.

Aug 19, 2021 José Ignacio Villarroel

By José Ignacio Villarroel

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The three scenarios the market is weighing for this weekend

Essentially, we believe there are three scenarios the market is weighing.

Apr 15, 2021 Damián Gelerstein

By Damián Gelerstein

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