Argentine Investment Experts Signal Defensive Stocks, Corporate Bonds for December Stability
Buenos Aires – As Argentina navigates a period of increased financial stability, financial advisors are recommending a blend of defensive Cedears, corporate bonds, and dollar-denominated assets to maximize returns while mitigating risk, according to recent analysis.Experts suggest a cautious approach to high-growth sectors like technology, favoring more stable industries amid ongoing global volatility.
Specialists at the Buenos Aires stock market are detailing investment strategies to capitalize on the current local and international landscape. Irureta emphasized adding a 15% allocation to defensive Cedears, while cautioning against entering the technology sector, particularly those linked to artificial intelligence, at current levels due to perceived risk and volatility. Rather, he recommends focusing on stable sectors with reasonable valuations, such as consumer staples and health, through ETFs XLP and XLV.
Augustine Savoy, a financial advisor at Cocos Gold, advocates for a balanced portfolio incorporating peso returns, dollarization via negotiable obligations, and selective global stock investments. He specifically advises allocating 30% to funds including corporate bonds from Pampa Energía, Tecpetrol, Brazil, and US Treasury notes, aiming to combine stability with dollar-based carry trade opportunities.
Savoy also suggests a 25% investment in peso funds with daily liquidity for flexible payments or withdrawals, describing them as capturing rates in pesos without excessive duration, ideal as a diversified tactical reserve in ON, private credit and short-term fixed income.
Further diversification is recommended with 30% directly in negotiable obligations (ON) of tecpetrol and Pampa Energía, and a final 15% in defensive Cedears including UnitedHealth (UNH), Coca-Cola (KO), and Berkshire Hathaway (BRK.B). Savoy summarizes this approach as providing stability, low volatility, and a hedge against local risk.
These recommendations reflect a broader strategy of balancing risk and return in a dynamic economic environment, prioritizing stability and diversification as key components of a successful investment portfolio in December.
