Boom times ahead for Argentine with the winds of change beginning
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NO WEALTH HAS EVER BEEN CREATED BY GETTING IN LATE! THE ARGENTINE PESO HAS PLUNGED TO HISTORIC LOWS
THE CURRENT MARKET VALUE OF ARGENTINA’S FARMS, COMMERCIAL, AND RESIDENTIAL REAL ESTATE IS A CONTRARIAN VALUE INVESTMENT PLAY RIGHT NOW, CREATING CONDITIONS FOR A BOOM
We believe there is already evidence of a desire for a turnaround in Argentina’s economic policies due to a series of significant positive developments that have recently taken place and that there is a window of opportunity to acquire Argentine assets at great values, as the real estate and stock markets continue to move forward in the years ahead. “Contrary to popular opinion, we feel Argentina represents an enormous opportunity in the years ahead.
Yes, there are risks, but we have already seen some significant positive change in political maneuvering and economic policies. If more change is on the horizon, as we anticipate it is, Argentina may well prove to be the biggest investment opportunity since the run up that Brazil experienced in the last decade. Are you a contrarian investors, and like John Templeton, who famously coined the phrase ‘go in at the point of maximum pessimism’ .
“We would welcome the Argentine government fully relaxing currency controls and continuing its recent progress in adopting market friendly policies. This would allow the peso to float freely against the dollar and bring the exchange rate more in line with the unofficial blue rate. We are already seeing the government making great strides in demonstrating clearer economic policies that are investor friendly.
An inflation index, developed in conjunction with the IMF, is viewed as a more transparent and credible snapshot of the country’s inflation rates, and as a result could open access to billions of dollars in future financing.
These initiatives are the key to Argentina’s economic recovery, and real progress is already being made. The prospect of business friendly politics is enticing investors in sectors such as energy, industry, infrastructure and natural resources including billions from Chevron and SHELL who are now exploring Vaca Muerta’s second-largest reserves of shale gas and fourth-largest reserves of shale oil in the world, as well as Toyota, Chinese direct investments, and many others.
These companies have carefully evaluated Argentina’s economic and political climate, and as well as its investment risk potential, and have resolved to commit significant long-term capital investments because of the strong potential for future growth and investment returns. In business terms, a devalued peso is not necessarily a hazard across the board. A currency devaluation certainly helps tourism, enticing foreign holidaymakers seeking to make their vacation money stretch further.
A devalued peso will also aid Argentina’s wine, meat and grain exporters by improving market competitiveness and leading to better revenues. Additionally, non-leveraged real estate is a hedge against inflation, and we believe that over time the land values will perform incredibly well. We are very excited about the growth potential. We are long-term investors and believe that we are in the right part of the world at the right time. Certainly not without risks, but we feel Argentina is well worth the potential rewards in the years ahead.”
Quotes from Algodon Wines & Luxury Development Group, Scott Mathis, Chairman & Founder.
Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours.
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