Argentina rises in markets

According to the consultant Ferreres, the southern country is not at its best financial shape because the activity barely grew 0.5 % in the first quarter of 2014 and inflation rose to 33.4 % through March, after the peso devaluation in January. However, not everything looks bad in the country as financial investors bet on its bonds and stocks.

Since that in the last legislative elections in August 2013, the possibility of amending the constitution to allow Cristina Fernandez de Kirchner to seek another presidential election in 2015, was discharged, shares and government bonds of Argentina have begun to rise and premium risk to shrink.

Markets have begun to be excited about the idea that the next head of state would be more lenient with them than Fernandez. With the devaluation, indicators collapsed over the fear of a crumbled economic and political situation, but Argentine authorities have adopted a series of orthodox economic measures, combined with others that are not, and investors have cheered them with a recovery of prices of stocks and bonds.

Also relevant is the fact that global markets are inflated with liquidity and currently seeking returns regardless of risk, as evidenced by the recent successful placement of debt of Greece, a country that has been rescued by the European Union (EU).

Cristina Fernandez