That is the statement I heard from a wise man said to me today. So simple, yet the torrent of sentimental rain upon emerging markets for the last few weeks has seemed as if casual observers are throwing in the towel.
What was recently their secret weapon to outperforming the S&P on EPS is now a headwind but is it a hurricane?
DXY index is off -85bps in afternoon trading, but that doesn’t mean the USD strength devastation is not being felt across the world.
Argentine stocks have suffered due to the business unfriendly government, and as a result, some dividend paying stock is cheap. One such opportunity exists with property management stock Alto Palermo (APSA, quote) based in Buenos Aires.
The Argentina oil industry has been more or less reduced to a utility under a presidential decree announced last Friday. But the new rules don’t provide the kind of monopoly risk profile usually associated with lower margins.