by Sven Carlin
We don’t know what will happen in Argentina long-term, but we can mitigate the unknowns by having a clear strategy and an open mind.
A good strategy considers your whole portfolio exposure, not just Argentinian stocks.
Excluding a Venezuela scenario, it all boils down to whether you like being a owner of various Argentinian assets like land, real-estate, utilities, roads, banks, oil, etc.
Be greedy when others are fearful and be fearful when others are greedy!
The above is one of the most popular investment quotes, but surely the least followed one. After this week’s +50% international market decline we can say that there is blood on the streets in Argentina (ARGT) and that one should be greedy.
However, when it comes to investing, things aren’t that easy. One has to carefully assess their portfolio exposure, strategy and check what can go wrong and determine whether the the market overreacting?
When it comes to Argentina, it is practically impossible to answer the above question with objectivity as we don’t even know what will be the economic agenda of the (likely to be) future president Fernandez. However, fellow contributor from Argentina Martin Maas, made an excellent overview of where the market might be wrong in assessing the investing risk and reward.
My focus is more on an investment strategy and how to play this kind of intriguing situations. I discuss the following subjects in the video:
1:08 Explaining the +50% daily market crash
3:03 The macro view on investing in Argentina
7:07 My investment strategy and thesis