A confluence of good news yesterday on several fronts: The market price for Argentina’s three major AgExports rose, the country risk fell another 3.5%, LCD prices have fallen 30% since the World Cup and debt repayment negotiations began in earnest with the Paris Club.
Despite the onda positiva, it’s important to remember that each of these indicators is highly volatile and subject to external variables like extreme weather, unforeseen risk, punitive tariffs and French egos. So what about something more tangible, more long-term, more big picture to hang our collective hopes on?
MoneyShow and Carla Pasternak’s Global Perspectives to the rescue. Pasternak, director of income research for High-Yield International, scours the globe looking for income plays in developing countries, and she certainly seems fond of Argentina. “A Hidden Treasure,” “the fastest-growing country in the region,” and “the booming country” are just three of the cumplidos macroeconomicos she sends Argentina’s way.
True, inflation is above normal and investor confidence was crippled a decade ago with the $95 billion default but, writes Pasternak, “The good news is all that is in the past. Argentina is in the midst of an economic revival.” One of the keys to success is the shifting nature of Argentina’s external dependence away from the Untied States and rapidly towards BRIC nations like Brazil which imports the majority of Argentine auto production, China which has joint ventures stretching from Tucuman to Tierra del Fuego and India which continues to broaden bilateral relations with Argentina. (Full Story)
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