In Argentina, Investor Patience is a Virtue plus having USD dollars at the ready

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Virtue plus USD dollars

In spite of the global recoil from Argentina’s unorthodox management of its economy ( some would irresponsible lunacy), there are strong investment opportunities for the astute and patient.

The past few years have seen Brazil, Peru and Colombia as favourite locations for new investment capital. Most of this money has been following the herd running a least two or three years behind the smart money that took on the country risks and invested early. Now it is more difficult to make the huge gains of these earlier investors. China and to a lesser extent India has to lead this charge and now have moved on to exploit Africa.

Argentine has long been ignored as being too hard with an anti-business government with no clear direction destroying what was one of Latin America best success stories. A steady stream of foreigners and local investors divesting in the past two years have seen as much as 400 million dollars a day being sent out of the country.  

Now the regions (Provinces)  have or are beginning to run out of funds to pay government workers and normal services. Already there has been some rioting and looting in the provinces and food shortages are becoming common. With the government basically banning the use of USD which has been the middle classes main vehicle for saving there is now considerable tension about the inflation this has caused which is now over 40% and rising.

However, there is a change in the wind as anyone following Argentine’s volatile past will attest.   Every 10 years or so as long as anyone can remember a mixture of corruption, incompetence and self-interest has caused the countries economy to collapse.

This time it was long overdue but was saved by super harvests of Soya earning export dollars. Now with the effects of covid and the return of a corrupt K incompetent administration, it is happening all over again. 

Residential and farm prices have collapsed making Argentina’s risk profile look the best it has been for decades for frontier investors.

The Argentine’s with money fled to Uruguay and the USA are now looking to return as the inevitable correction takes place.

It will be with US dollars that they will return with finding once again sweet pickings in the real estate markets.

When will this happen? Much sooner than anyone thinks

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About Geoffrey W W McRae

With a highly distinguished career spanning more than three decades across five different countries, New Zealander Geoffrey McRae has established himself as a leading authority on South American real estate, agricultural, and commercial matters. As the founder of Gateway to South America – a real estate consulting group specialising in six South American countries – Geoffrey has developed a reputation for discretion, expertise, and experience that has seen him represent some of the most prestigious clients in the region. His deep knowledge and experience of South American markets have placed him at the forefront of the industry and given him the opportunity to guide and advise with confidence and surety. His long and successful career – which continues to evolve and expand daily – is a testament to his talent, tenacity, and ambition.

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