In Argentina Patience is a Virtue plus USD dollars at the ready
Virtue plus USD dollars
In spite of the global recoil from Argentina’s unorthodox management of it’s 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 favorite 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 lessor extent India has 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 100 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 20% and rising.
However there is a change in the wind as anyone following of 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 is long overdue but was saved by a super harvests of Soya earning export dollars. Many Argentine’s who with there money have fled to Uruguay and the USA are now looking to return once the inevitable correction takes place. It will be with US dollars that they return finding once again sweet pickings in the real estate markets.
When will this happen. Sooner than anyone thinks