Christmas bonus: what do you recommend investing in to beat the dollar and inflation

In this sense, from Invest Online they propose the following instruments to obtain a good return taking into account the profiles of each saver and investment term.

Bonus: How to beat inflation?

From the IOL Investor Online Research team, they suggested a fixed income portfolio with which they aim to beat the estimated inflation of the next twelve months.

Faced with this complex panorama with inflation, having pesos without investing generates losses of purchasing power of great magnitude. To put it in context, if at the beginning of the year you saved $1,000 without investing, at the end of the year you will be able to buy half of the goods and services with that $1,000.

From our point of view, they consider that taking a position in assets that adjust with inflation, known as CER instruments, represents the best option to protect value against rising prices.

• Short term: add letter X17F3, which adjusts capital by CER maturing in February 2023. This instrument has an annual yield of 3.9% above inflation. Another option is to add the bond to the portfolio TX23, maturing on March 23, 2023 and yielding 4.5% annually above inflation.
• low amount: common investment fund AdCap Wise Capital Growthwhose possession has a large proportion of CER instruments maturing before 2023. This Fund is positioned both in bills and in CER bonds, thus offering inflation coverage with different maturity and yield terms, including bonds with reduced liquidity such as T2X3. In turn, it has a part in Dual Bonds, offering partial coverage against the official exchange rate.

Christmas bonus: how to beat the dollar?

• Negotiable Obligations (ON):

  These instruments are bonds issued by private companies, which, like other fixed-income instruments, pay coupons and can be repaid in installments or at maturity depending on the conditions of each of the negotiable obligations in question.

  Therefore, they could be understood as instruments similar to sovereign bonds, but issued and backed by the assets and income of private companies.

In this sense, for those interested in a fixed income alternative, it could be a good idea to have exposure to some negotiable obligations. Among these instruments, it is better to prioritize those that present returns above the inflation in dollars of the US economy.

– Telecom Negotiable Obligation (TLC5O): It expires in August 2025 and offers an interesting payment structure.

It pays coupons semi-annually at an annual rate of 8.5%, and four annual capital amortizations starting in 2023, reducing risk by not accumulating all the capital at maturity. Thus, the ON offers an IRR of 10.0% to date, exceeding US inflation.

– YPF negotiable obligation (YCA6O): for its strong position within the oil industry, noting that it is a company with solid fundamentals in a large-scale industry and where we highlight the improvement in results in recent quarters. The instrument in question has an estimated annual yield in dollars of 18.4% and its maturity will be in July 2025.

These investments can also be considered for investments that have an investment horizon of between one and two years.

Options at CEDEARs

For investors who want to boost their investment with a savings goal of more than one year and with a higher risk tolerance, we suggest having CEDEARs from large companies in the United States.

CEDEARs are financial assets with local operations, which represent ordinary shares of companies listed abroad. They are negotiated both in pesos and in dollars, although it is worth noting that currently the largest volume of operations is in pesos.

Thanks to these instruments, an Argentine investor has the possibility of investing in the most important companies in the world without having to have an account in the United States. On the other hand, they also usually require low amounts necessary to buy them, which makes it possible to create a diversified portfolio.

After several very negative months for the North American markets, the main New York stock indices recently rebounded and were able to recover a good part of what was lost.

The recent recovery of the Wall Street indices is part of a natural movement that occurs in any “bear market”. After the falls suffered in recent months, a large number of assets were at oversold levels and, in turn, resumed much more attractive valuation prices.

Recommended:

1. Coca Cola (KO)

   This popular company manufactures, markets and distributes non-alcoholic beverages, such as concentrates and syrups for soft drinks, juices, energy drinks and other products. Its brands include Coca Cola, Fanta, Sprite, Powerade, among others. It is one of the actions called “Blue Chip” which refers to large, well-known, profitable, low-volatile companies that pay high dividends.

2. alphabet (GOOGL)

This decision is determined by a sum of technical factors, and especially fundamental, since the technology company shows a low valuation with respect to its earnings, both compared to other peers and its own historical average.

3. CEDEARs of the S&P500 Index ETF (SPY).

It is the oldest ETF listed in the US, being in turn one of the ETFs with the largest number of assets under management and also has the largest volume of operations.

With a total of 505 assets under custody, the fund seeks to replicate the behavior of the S&P 500, one of the most important benchmark stock indices in the United States.

4. Berkshire Hathaway (BRKB)

It is a holding company that, together with its subsidiaries, invests in companies from various sectors, including insurance, public services, energy, transportation, manufacturing, retail trade, and services.

It is an investment company in which Warren Buffet, iconic investor, is the executive director and majority shareholder. Among its largest investments are: Apple, Bank Of America, Coca-Cola, American Express and Wells Fargo.