Indian stocks have been in a downtrend since September after concerns about a slowing economy spooked foreign investors into pulling out of them.
Meanwhile, an attractive investment opportunity outside of the United States this year is Colombia, according to Yan Wang, a chief emerging markets strategist at Alpine Macro.
Colombia’s value proposition coupled with its growing economy will help its equities outperform in 2025, he told investors in a recent report.
Colombian stocks are ‘relatively insulated’
Wang is positive about Colombia even though the South American country had a bit of a hiccup with the US over the weekend.
But the events over the weekend only suggest “Colombia has effectively passed the Trump test and I don’t expect a significant deterioration in the bilateral relationship,” he argued in a note.
The Alpine Macro strategist expects Colombia to be “relatively insulated” from President Trump’s trade policies as well.
All in all, he expects Colombian stocks to outperform as they are currently one of the cheapest in emerging markets.
Put together with a growing economy, solid consumer demand, favorable tax policies, and strategic location – the country looks attractive for investment in 2025.
Colombian economy to grow 2.9% in 2025
Colombia noted an increase in its gross domestic product (GDP) of only 0.6% in 2023.
However, estimates are for its economy to have expanded by 1.5% last year, with the country’s central bank forecasting an even higher 2.9% economic growth in 2025.
Note that Wang is not the only one who’s bullish n Colombia. Others, including Malcolm Dorson of Global X ETFs share his optimism as well.
“Colombia is small and it can easily be overlooked. But I like it – I think it’s an interesting value point and I’m especially optimistic on it in the second half of this year,” Dorson said in a recent interview.
A lucrative 8.32% dividend yield coupled with the MSCI Colombia Index makes the country’s equities all the more attractive to own at writing, he added.
Two Colombian stocks to buy in 2025
Within Colombian stocks, two that Dorson is particularly bullish on are Ecopetrol – its largest petroleum company, and a financial giant, Bancolombia.
Both have their American Depository Receipts listed in the US.
Ecopetrol as well as Bancolombia have already rallied more than 20% over the past two months but Malcolm Dorson of Global X ETFs expects both to extend their rallies through 2025.
However, his view on EC and CIB is somewhat contrarian. Wall Street analysts have a consensus “underweight” rating on Ecopetrol stock at writing while they rate Bancolombia at “hold” only on average.
On the flip side, Ecopetrol shares pay an exceptional dividend yield of 38% at writing while it’s set at 8.53% for Bancolombia stock.
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