“Something extremely useful was the ‘so natural’ analogy that the specialist explained for those who decide to invest in these assets for the first time. “Observe your routine and think about what products you consume and position yourself in those companies. Among objects such as an iPhone (Apple), a coffee (Starbucks), a shampoo (Palmolive), “said the expert.
“This implies, try to look at the solidity of those companies that endure over timeand despite the international macroeconomics with its ups and downs, continue to endure over time. It is always important to diversify a portfolio and remember that there are products that do not stop buyingand those these lead us to the firms that will have growth even with fears of recession like the current ones“said the analyst.
Traditional investments vs. capital markets
Diego Martinez Burzaco Head of Strategy and Research of Inviumaintained that “traditional investments in argentina do not work”. The specialist indicated that it is not a wise decision to keep the dollars in the mattress because there is record inflation in the US, and prices measured in pesos grow more than what the US currency increases.
“The countries that the less they save in the region are Argentina, Peru, Nicaragua, Colombia and Paraguay. And among the members of the G20, the Argentines we are the ones with the least financial education. There is a general instability that does not allow us to think about long term, that conspires with channeling an important part of the savings towards the capital markets. And the empirical evidence shows that the world’s major economies have robust capital markets, Burzaco said.
“Traditional investments such as buying dollars, making a fixed term or buying a property to rent it, do not work”emphasized the specialist.
With respect to gross annual rental returnnoted that it is 3.7%. This, according to his words, it does not meet the condition of protecting purchasing power, it also requires a lot of capital and is very illiquid.
Yes we look at the fixed term in the last 20 yearssomeone who did he placed one and renewed it monthly till the date, now he would buy 60% less with what he produced in this time. This is because accumulated inflation was 13,200%.
On the other hand, “who bought dollars 2 decades ago and saved them, today swould only have 16% more purchasing power compared to local inflation. Although between 2017-2019 there were periods when it was the other way around, “she said.
“However, if we had acquired the Merval S&P index would have almost 3 times more purchasing power. Which, long-term can cover us from macroeconomic scourges,” said the economist.
“The probability of winning increases by investing in international markets. In a survey of records of statistics on the chances of success in terms of profitability if you invest in the S&P 500 it is if you have a 1-year term of 70%, in 2 years it is 88% and after 20 years it is 100%. It invites us to get out of traditional investments, the longer the time horizon, the more likely it is to win,” concluded the Inviu spokesperson.
Source: Ambito
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