Why Elon Musk Is Right About Argentina; "Chainsaw" President Milei Has Argentina Stocks Beating The S&P 500 All Year
Following a recent trip to Buenos Aires, America’s “Iron Man” Elon Musk said investors should put money to work in Argentina.
Is he right?
For starters, the market looks to be in a risk-on moment. Argentina is pretty risky, so the risk-on trend is Argentina’s friend.
Global equities reached an inflection point on April 19. That was when Iran signaled that it was not going to climb the escalatory ladder with Israel over Tel Aviv’s response to the October 7 terrorist attacks by Hamas against civilians attending a music festival not far from the Gaza strip.
That decision by Iran put a cap on oil prices and was bullish for stocks. Oil futures are down from their April 5 peak of $86.91. Without a reason to return oil futures to their annual highs (despite the May 8 rise due to inventory declines), consensus has been that the Federal overnight rate maximum of 5.5% will not go higher. The Fed monetary policy committee opted to keep rates unchanged on May 1. Their projections are for interest rates to decline to 3.9% in 2025.
Back to Argentina.
Conservative investors ...
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