After the inflation data, what are the best investment options for the STEP

Last week the inflation data for June was released, which according to the Consumer Price Index (CPI) published by the National Institute of Statistics and Censuses (INDEC), stood at 6%, while, in the last 12 months, it reached 115.6%. These were better-than-expected data, although they remain high, and that forces us to recalculate portfolios. For this reason, with this information on the table, the City analysts evaluate which are the best investment options facing the primary election (STEP)

For Javier Marcus, Business Manager at Suthern Trust, for example, “the June inflation slowdown could be an opportunity to contribute to the assets that adjust for CER” and it is that he considers that this CPI data “gives a better entry point” for this type of investment.

Fixed term: rates are an option

However, on the other hand, he mentions that one must take into account the fact that the fixed rates They also become more attractive after the June price data. And it is that, the board of directors of the BCRA decided to keep the yields of the regulated instruments unchanged, after for the second consecutive month the monthly inflation recorded a significant slowdown compared to the previous month.

In this way, the central bank maintained the nominal annual rate (TNA) of the traditional fixed term in 97%which is equivalent to a effective monthly yield is 8% and that, with inflation at 6%, implies that it remains positive at 2 percentage points.

Consequently, the economist from Grupo Broda Elena Alonso points out that, “with the inflation data for June on the table, this is a good moment to take advantage of the interest rate, which did not go down”. The fixed term appears, thus, as a good option, but the analyst assures that she prefers to buy Treasury Bills, as LEDs or Lecers.

“There are some Lede that expire on July 28 and some Lecer that expire in mid-August, for example, and they seem interesting alternatives to me since they have more liquidity possibilities than the fixed term in the short term,” Alonso mentions. And he explains that this greater liquidity It is a good opportunity that helps not to be out of step with the dollar in case there is a strong jump, like last week, for example.

Dollarization: an interesting alternative

Meanwhile, in the long term, Alonso sees dollarization via Cedears or negotiable obligations as a good option. “I think they are good options even though the cost of the entry fee is high,” he mentions. And it is that the portfolio dollarization It is one of the strategies that Argentines usually point to the most in an electoral context, such as the current one.

Stock market expert Marcelo Bastante agrees with this vision when pointing out that, although, on the one hand, Argentine stocks may continue with an upward trend, although not as strongly as we have seen in recent months, they are beginning to wake up the dollar And, in this context, he believes that “the investments in pesos they are less attractive than they were until now”.

Consequently, Quite welcomes the sovereign debt in dollars, which is at very low values. “Some bonds have very convenient parities, close to 30% and with an IRR of 40%, so they are interesting options,” he points out. And he does not consider betting on the debt in pesos a good option, given that what can happen with the exchange rate in the future in the electoral context is unpredictable.

A diversified portfolio

Thus, as Marcus points out and taking into account the different options to choose from and the high volatility of inflation, “everything would indicate that it is best to build diversified portfolios in both types of instruments.” One option is mutual investment funds, such as one for infrastructure that, in the case of the Southern Trust, for example, has a room that adjusts for inflationbut also includes badlar, dollar linked and hard dollar assets for broader coverage.