4/12/2023 - Economy and Finance

Investment opportunities during the electoral year

By tomas ballazini

Investment opportunities during the electoral year

Throughout the elective year, it is highly likely that there is uncertainty and volatility product of the uncertain future in the economic direction of the country.

Starting from the base of a new economic direction of the most pro-market style, with greater certainty and with a better long-term horizon, I plant the following investment opportunities. It should be noted that it is important to know the risk profile that you want to take on each investor, always taking into account the close relationship between risk and return.

Argentine actions

In addition to the high subas recorded by Merval during the last year, I consider that for the medium term the Argentine actions may be a good option. Within the local actions, it would expect a good reaction in the energy and oil sector. For example, companies like YPF, Edenor and Metrogas are relatively cheap for a change of government that proposes policies favorable to investments in the country, with market prices and less regulations. By analyzing these companies with similar companies, one can observe that, in price ratios with another variable, the same is lower than the comparable ones in the industry.

In mid-March, in the case of YPF, besides having record gains in 2022, it has very favorable price ratios. The price/utility ratio is half that the oil industry reports, and in the case of price/sales is less than 1/3. This indicates that the price of the action is cheaper than similar companies in the industry. In the case of Edenor and Metrogas, there is the same phenomenon taking research datang. with.

Deadline

Interest rates: the traditional fixed term has very high interest rates (TEA: 113.2%). Since day to day inflation is not pure gain. But, considering a better scenario, where a low rate could occur, it seems logical to ensure some of the savings by taking fixed deadlines at different times. For example, a monthly part to take advantage of the capitalization of every month, leaves at 3 months, and last one year to ensure the high interest rate.

Covers

Since considering the above investments, risks and possible scenarios are being taken. Therefore, a good option would be to keep some instruments that your quote depends on the dollar, one of them could be the Cedears: for example indices like the SPDR that take the top 500 US companies. One aspect to consider for this type of alternatives is US inflation and the position the EDF will take on the interest rate given its direct impact on the stock price. But post-war Russia-Ukraine there are many companies that have not yet managed to recover completely and have future for the long term.

You can also think of transactionable obligations or put some stablecoin fee as it can be USDT. Dollars in cash is the most common, but not so the best option, since U.S. inflation loses a lot of purchasing power, in addition to its buying restrictions and possible theft.

In conclusion, diversifying the risks intelligently, I see in an optimistic way the energy and oil sectors of the country thinking about the electoral year and its future viability. The policies implemented in the economic direction will be key to determining the right investment, but it will be necessary to position itself properly in order to take advantage of the electoral year from the economic point of view.

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tomas ballazini

tomas ballazini

Bachelor of Business Administration UTDT, I am 22 years old. I'm interested in everything that has to do with investment, finance and understanding the company business model.

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