March 22, 2022

Understanding Argentinian Markets with Santiago Solanet


Argentina just struck a deal with the International Monetary Fund (IMF) to give the South American country some “breathing space” for the next few years to pay off debt. From an Argentinian expert’s perspective, how is it looking for the economy and more importantly, to its people?

In this episode, Doug and Greg talk with Santiago Solanet, Senior Investment Analyst at BlackTORO Global Investments. Santiago is known for monitoring and analyzing the local and global economic situation of the Argentinians.

Santiago talks with Doug and Greg about understanding Argentinian markets—from the recent IMF agreement to peso depreciation to its political environment.


Key Takeaways

  • [00:41] - Beyond the markets: the life and rich culture of Argentina.
  • [03:51] - Peso currency depreciation.
  • [08:55] - What's it like to do business in Argentina?
  • [11:19] - Insights on the effect of war with the UK, soybean prices, and inflation.
  • [15:59] - How does a country turn around a 50% year-over-year inflation?
  • [21:00] - How's 2023 looking for the Argentinian economy?
  • [24:16] - A look at Argentina’s labor market performance.
  • [33:13] - Vista plans with cash flow.
  • [37:13] - Exploring Argentinian cuisine.


Quotes

[06:47] - “The ‘most’  problem is, with every month that passes, with your salary, you can buy less and less goods as compared to the previous months. In Argentina, every six months, we have a compensation—we actualize the salary, but we always run it back against inflation.” - Santiago Solanet

[15:58] - “In my opinion, we need a change in the government, change of power, because, in this government, we don’t have trust or confidence or credibility. You're not going to solve anything because you might say, well, we are going to change the economy plan, we are going to have lower taxes—but the markets, they don’t believe that.” - Santiago Solanet

[29:23] - “I think there are good opportunities in Argentina. We have to be very picky. There are companies that have huge problems that are too risky.” - Santiago Solanet


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Disclosure

The information in this podcast is educational and general in nature and does not take into consideration the listener’s personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.