Compound interest investments opportunities

[joshray]

Hi,

I would like to know what are the best opportunities currently for investing in DOP. I have found some options such as:

Stock market -> ~11.50% ~3 month investments (percentage based on a yearly basis)
Cooperativas -> 15-18% returns on 1 year investments

Investing in the "aportaciones" of a cooperativa gives a good return, but I am not sure what are the risk factors of it. Also many cooperativas set an upper limit on how much you can contribute to "aportaciones", such as Cooperative San Jose (upper limit 50,000 pesos per year), however some don't have upper limits.

Regarding the stock market I found Alpha inversiones (puesto de bolsa) to offer some of the better rates among the "puestos de bolsas".

What are your thoughts on above investment options, or are there better options available currently?

Thanks!

 

[johne]

Hi,

I would like to know what are the best opportunities currently for investing in DOP. I have found some options such as:

Stock market -> ~11.50% ~3 month investments (percentage based on a yearly basis)
Cooperativas -> 15-18% returns on 1 year investments

Investing in the "aportaciones" of a cooperativa gives a good return, but I am not sure what are the risk factors of it. Also many cooperativas set an upper limit on how much you can contribute to "aportaciones", such as Cooperative San Jose (upper limit 50,000 pesos per year), however some don't have upper limits.

Regarding the stock market I found Alpha inversiones (puesto de bolsa) to offer some of the better rates among the "puestos de bolsas".

What are your thoughts on above investment options, or are there better options available currently?

Thanks!

Good luck.Just curious as to why as a first time poster you would turn to a non-financial type forum board?

 

[joshray]

Good luck.Just curious as to why as a first time poster you would turn to a non-financial type forum board?

I have not been able to find any financial type forum related to DR. If you know of any please let me know. Thanks!

 

[cavok]

I would only buy sovereign and corporate bonds through a bank like BHD. Too many of the other investment firms are very risky and outright scams.

 

[MariaRubia]

Be careful what currency the investments are denominated in. If they are in DOP and you start off with any currency other than DOP, then you have to factor in exchange rates. I think there are a lot of much safer bets out there, look at Greece for example.

 

[chico bill]

Be careful what currency the investments are denominated in. If they are in DOP and you start off with any currency other than DOP, then you have to factor in exchange rates. I think there are a lot of much safer bets out there, look at Greece for example.

Greece is less solvent, or at least illiquid, than DR - that has been shown in recent history as it was the first country to declare default on an IMF loan.
It has had repeated years of negative real GDP growth. Loan restructuring has helped but the islands are still a dumpster fire, and speaking of fire - the island of Rhodes had to evacuate over 20,000 people due to wildfires spreading and still not controlled and new tourist flights have been haulted.

 

[MariaRubia]

Greece is less solvent, or at least illiquid, than DR - that has been shown in recent history as it was the first country to declare default on an IMF loan.
It has had repeated years of negative real GDP growth. Loan restructuring has helped but the islands are still a dumpster fire, and speaking of fire - the island of Rhodes had to evacuate over 20,000 people due to wildfires spreading and still not controlled and new tourist flights have been haulted.

I was simply referring to the returns you can get from investing in Greece compared to DR. The Greek economy has been doing somersaults and some of the funds which do Greece (ie GREK ticker) are up 72% on the last 12 months.

 

[joshray]

Be careful what currency the investments are denominated in. If they are in DOP and you start off with any currency other than DOP, then you have to factor in exchange rates. I think there are a lot of much safer bets out there, look at Greece for example.

Regarding the exchange rate, I have found that I can get very favorable exchange rate using an ATM and a local provided USD card. For example with BanReservas I can open a USD account and get a USD debit card. If I withdraw DOP from a BanReservas ATM using the USD card, I get a superior exchange rate than if I were to change the money at the bank or at any other establishment. The downside of using an ATM is that there is a limit per day depending on the bank (2,500 USD for BanReservas)

For example, if I were to withdraw today:

Google rate = 56.02
ATM: ~56.10 (estimate based on previous withdrawals)
Bank: 54.85

What other safer options would you recommend? I am not a US citizen so its complicated for me to invest in the US stock market.

 

[JD Jones]

I would only buy sovereign and corporate bonds through a bank like BHD. Too many of the other investment firms are very risky and outright scams.

This. BPD sends me a list every month of opportunities, both in USD and DOP. I wouldn't be afraid to go with any of their options.

 

[joshray]

This. BPD sends me a list every month of opportunities, both in USD and DOP. I wouldn't be afraid to go with any of their options.

thanks, I will investigate with BHD and BPD. I refereed to this list: https://bvrd.com.do/nuestros-emisores/#Sector-Financiero, but as you say might be safer to go with a more established bank rather than Alpha. After further investigation I found on fitch ratings:

BHD AA+
BPD AA+

Alpha does not appear on fitch ratings, they only appear on feller rate with a A-. Regarding the cooperativas I could not find any califications for them, not sure how they get rated...

 

[JD Jones]

thanks, I will investigate with BHD and BPD. I refereed to this list: https://bvrd.com.do/nuestros-emisores/#Sector-Financiero, but as you say might be safer to go with a more established bank rather than Alpha. After further investigation I found on fitch ratings:

BHD AA+
BPD AA+

Alpha does not appear on fitch ratings, they only appear on feller rate with a A-. Regarding the cooperativas I could not find any califications for them, not sure how they get rated...

Those ratings are for the banks themselves, not for investment opportunities.

The first link you posted takes you to the page with Financial Sector prospects for each institution.