The last month of the year also means additional income for employees in a dependent relationship: Companies must pay out the bonus before December 18th. Although part of this money is usually used for year-end purchases and debt repayment, the Argentine capital market also offers such opportunities Investment alternatives depending on the risk profile and make sure the weights pay off.
Once the election uncertainty is over in October, which caused months of “extreme volatility.” Analysts emphasize that the macro economy enters December in a more orderly manner. Peso interest rates are normalizing and the dollar is experiencing a few weeks of greater calm. Meanwhile, the low interest rate cycle internationally is weakening the global dollar and encouraging capital flows to emerging markets. “This is a tailwind for raw material exporters like Argentina and Brazil”said Juan Ignacio Bialet, personal finance manager of SBS Group.
For those who want to escape volatility without sacrificing dollar profitability, Argentinean companies’ corporate debts are being consolidated as a preferred option. since the investor knows in advance how much and under what conditions he will pay. Cocos Capital highlights the Negotiable Obligations (ON) of energy companies like Tecpetrol and Pampa Energía, Issuers with “robust financials” and access to the dollar.
In this sense, Bialet recommended positioning in a common investment fund focused on a portfolio of tradeable liabilities, such as SBS Latam Renta Fija. It offers high exposure to the corporate earnings of the country’s major companies in US dollars, with a focus on the energy and gas sector. “Due to the income exemption, the tax-adjusted risk-reward ratio is attractive compared to international fixed-interest investments“, he explained.
Another option for investors who want to diversify their portfolio and ensure predictability is Global 2035 (GD35), according to analysts at Invertir Online (IOL). In this case, it is a bond on the Argentine sovereign curve with “good prospects” against the background of lower country risk. “It offers a 10% annual return and interesting potential given the continuity of Argentina’s economic improvements. “Ideal for more aggressive profiles looking to increase their dollar return.” they added.
Argentinians can buy Stocks that operate in the United States without having to open an account abroad or have the dollars in hand. Argentine certificates of deposit, better known as cedarshave gained popularity in recent years because they allow you to avoid the Argentine risk and, even if you buy in pesos, they follow the fluctuations of the dollar with settlement (CCL).
For Bialet, a balanced portfolio consists of 40% tradable bonds, but also 20% cedar. Google (GOOGL), 20% of Fintech Brazilian Nubank (NU) and another 20% of the Argentine oil company’s cedar VistaEnergy (VIST).
On the other hand, Cocos Capital recommended different cedars depending on the investor’s risk profile. For those who are more conservative, they have chosen Coca Cola (KO), due to its predictable cash flow even in recessions. For moderate savers, they put together a portfolio of defensive cedar species, consisting of a 5% from United Health (UNH); 5% Coca-Cola (KO); and 5% of Berkshire Hathaway (BRKB). “It is a balanced mix of health, basic consumption and Value global. It provides stability, low volatility and offsets local risks,” they added.
Last for this one more aggressive profiles Cocos was willing to take more risks in search of higher profits and allocated 35% of the portfolio to Cedears. This list includes 15% of Berkshire Hathaway, He Holding company which is led by Warren Buffett; 5% of Metaplatforms (GOAL); 5% of Spotify (POSITION); 5% of Nubank; 5% of Healthcare ETFs (XLV).
They also mentioned IOL Meta and Vista Energy, But they also decided on other alternatives to diversify the portfolio. For example this Emerging Markets ETF (EEM), an index that tracks the movement of more than 1,000 large and medium-sized companies in China, Taiwan, India, South Korea and Brazil.
Eventually they recommended this S&P500 (SPY)the most important American index, which includes the 500 most important companies in the country. “It is a mandatory alternative in every investor’s portfolio. By investing in this company, you are acquiring a part of the largest companies in the world, allowing you to efficiently diversify the portfolio,” they concluded.
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