ARGT - ARGT: A Call Option On Argentina's Reform Story
2024-07-18 02:39:10 ET
Summary
- Argentine equities have rallied post-election.
- But valuations remain quite reasonable relative to the improving fundamentals.
- Low-cost ARGT remains a great play on the structural reform story.
Things have gone well for Argentine equities since I last highlighted the election opportunity in Global X's MSCI Argentina ETF (ARGT) (see ARGT: Positive Change Is Afoot For Argentina ). In this post-election phase, though, all eyes are now on President Javier Milei's ability to execute relative to expectations embedded in asset prices. On this front, a recent positive development was getting the all-important omnibus bill (also 'Ley bases') through the Argentine Senate. Yes, compromises were made, namely on certain taxes and privatization efforts. But early success here, particularly on reducing State bureaucracy, remains a positive signal for governance and bodes well ahead of mid-term elections next year – an opportunity for Milei and co to make further inroads into Congress....
ARGT: A Call Option On Argentina's Reform Story