About six weeks ago, I warned that it was Time To Rain On The Parade in Argentina. Investor sentiment was getting frothy despite a crushing drought, persistently high inflation, and an overvalued Argentine Peso.
Since then, things have flipped pretty quickly. The benchmark Merval is tumbling (down 15% from its January high, and dipped below 30,000 last week to new 2018 lows):
Factor in the renewed decline of the Peso (it has declined 20% since December), and investors seeking returns in dollars are starting to show some losses. Note that the Argentina ETF (ARGT