Panama is not only known for its canal and vibrant culture, but also for the investment opportunities it offers to all types of investors, especially in the stock market.
In this article, you will finally find a guide to achieve a successful insertion in one of the most important emerging markets of the region, in a safe way, which will allow you to achieve your investment objectives.
1. First things first: Brokers and Securities Brokerages
As in all markets around the world, you need a financial intermediary, commonly known as a "broker". In Panama, these functions are performed by the Securities Brokerage HousesThese entities are regulated and supervised by the Panamanian government to guarantee the best possible experience in this market.
These entities, as Singularwill help you to acquire securities mainly in the stock market and to hold them in custody. In addition, they offer investment advisory and portfolio management services to improve your returns and balance the risks inherent in this type of investments.
2. Okay, now you need a Runner.
Once you have opened your account with a brokerage firm, you will need a broker to keep an eye on your account. attractive investment opportunities in the local market, as well as strategies to grow your portfolio.
This professional will also be in charge of buying and selling the securities on your behalf. As a general recommendation, make sure it is a person with the necessary certifications, experience and knowledge in the market.
Now it's time to think: Strategies, analysis and monitoring.
Once you have your broker, you can develop an investment strategy based on your objectives and your profile as an investor. To do this, it will be necessary to conduct a thorough analysis.
After implementing this strategy, you should establish monitoring periods to review the progress of your investments and make adjustments or changes to your portfolio as needed to optimize returns.
4. There are always risks: Some you should consider
In every investment there are risks and those made in the Panamanian stock market are no exception. Here we mention some relevant risks when investing in this market:
- LiquidityThe Panamanian stock market is relatively young and is still in a growth stage, which may result in lower liquidity compared to more developed exchanges. If you prioritize liquidity, we recommend you to look for highly demanded products to avoid difficulties in selling them.
- Non-systematicThese are the factors that can work against the expected return of the investment, such as the creditworthiness of the issuer, the structure of the instrument or the management of the entity. Fortunately this can be worked around with diversification and the help of a skilled broker.
But seriously, why invest in Panama?
Panama has been one of the fastest growing countries in the region over the last three decades, with an average economic growth rate of 8% per year. This reflects its attractiveness to investors.
The securities market is expanding thanks to strategic alliances with countries such as El Salvador, Guatemala and Colombia, which has broadened the range of products and participants. The recent connection with Euroclear in 2024 allows European investors to acquire securities directly from Panama, significantly increasing liquidity. In addition, Panamanian regulation offers advantages such as the qualified investor visa and tax exemption on securities gains, making the country even more attractive to investors.
To summarize
Investing in the Panamanian stock market is easier and simpler than you thought. The Panamanian market offers promising opportunities backed by its expansion and solid regulation. It is crucial to have a reliable broker and an investment strategy adapted to your objectives. Although there are risks, the sustained economic growth and new opportunities make it worthwhile. In addition, the country's tax and regulatory advantages are an added attraction that investors like you cannot ignore.
With all this in mind, not only will you be able to invest in the Panamanian market, but you will also be able to do it successfully.
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DISCLAIMER: Singular Wealth Management, Corp. and Singular Securities, Corp. (SWM&SC), offer perspectives on various markets, sectors and investment opportunities that could be valuable to subscribers of our editorial content. This includes views on different types of securities, as well as commentary on economic and political scenarios. It is crucial to understand that this publication does not constitute financial guidance and is not an invitation to make specific investments. For personalized advice, we recommend using the Unique Advisory Services through our Securities House's qualified financial advisors to achieve your investment objectives. Although the information in this publication comes from reliable sources, we cannot guarantee its accuracy or completeness. Information is current at the time of publication, but may change without notice. Investing in securities involves risks, including the possible loss of principal, and past performance is no guarantee of future returns. SWM&SC personnel may invest in the securities discussed from time to time without receiving any compensation from the companies mentioned. We disclaim any liability for damages resulting from the use of our services. Entity regulated and supervised by the Superintendencia del Mercado de Valores of the Republic of Panama. Singular Wealth Management Corp., "License to operate as a Securities Brokerage Firm, Resolution CNV- No. 219-2005 of September 19, 2005". Singular Securities Corp., "License to operate as a Securities Brokerage Firm. Resolution SMV- No. 672-15 of October 21, 2015"....
