Actually in the financial system and the capital market are offered a wide range of Investment choices, who manage to capture a big part of Peruvian homes surplus. These choices go from low risk products as saving accounts and time deposits, to the riskiest –but with better rent expectations- as variable income and financial derivatives.
Nevertheless, these instruments are sensible to market variables as exchange rates, interest rates, inflation, many kinds of exogenous variables, etc. What’s more, during financial stress periods and systemic crises (that can affect many countries and financial markets at the same time) the correlation that exists between the instruments increases in a way that a good part of the advantages obtained from the diversification end up eliminating. In a few words, the different investments that we can have in the financial or capital market, can go through an unexpected direction and seriously affect the investors capital.