BUENOS AIRES/NEW YORK - Argentina’s stocks, which crashed last month to multi-year lows, are starting to lure in hardy investors tempted by bargain basement prices, even as the country teeters on the brink of default ahead of a general election next month.
The country’s main stock index lost almost half its value in the weeks after a shock Aug. 11 primary election defeat dealt a crushing blow to market-friendly conservative President Mauricio Macri and also roiled the country’s debt market and peso currency.has since steadied, though it remains down by over a third, which bankers and brokers said was starting to attract investors hopeful that the environment would improve and valuations recover.
“The valuations of companies don’t reflect their reality right now. Today they are at high risk because Argentine assets are very volatile, but looking at things in the medium term it’s an opportunity to buy.”
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