The pesos are devalued day by day within the framework of a high level of inflation that, according to the latest official data from the National Institute of Statistics and Censuses (INDEC), registered a 25.5% in December. Added to that is the uncertainty generated by the first steps of the government of Javier Milei and the failure of omnibus law.
In that framework, the Investors reevaluate what investments to make in this new scenario. In this framework, the main question is whether it is advisable to bet on inflation-tied instruments or to those who contribute in relation to the dollar.
In this regard, the business and markets expert, Salvador Di Stefanoindicated the importance of adopt a change of mindset when investing money to adapt to the great change of scenery that the new Government implemented.
The new economic panorama generated by the Milei government
Among the key phenomena to take into account regarding the changes promoted by the new government, Di Stefano assured that “Milei is not generating monetary emission backless”, unlike the previous management. And, as he explained, that means that there is no longer any pressure on the inflation.
However, prices could continue to advance driven by the delay of the issuance of previous months Next to the price release of the entire economy and the effects of the devaluation of more than 50% carried out in December by the Minister of Economy, Luis “Toto” Caputo.
Consequently, there was a strong reduction in circulating weights In the economy. That, as the specialist explained, drives a recessive process that generates a drop in activity and that can end up causing people to resort to liquidate your savings, which in many cases, are Dollars.
“If people start selling dollars, obviously the dollar magicwhich I recommended for years and I was right, now it’s starting to make mistakes“said Di Stefano.
Dollar or inflation: what is best according to the guru
Due to this phenomenon related to the dollar, the market expert expects inflation to rise more than the dollar in the next months. Therefore, he recommends investors lean towards instruments tied to the CPI.
“If you take the dollar since Milei took office, you will not have a very important increase, on the other hand, yes you have a very significant rise in inflation“he described.
Di Stefano maintains that the inflation is going to beat the rise of the dollar. “It is clear that Milei’s plan is not Massa’s: Milei is going to adjust all rateswhich will lead to an increase in prices in the economy,” he noted.
In this framework, to bet on inflation he recommended the CER bondsespecially to those who have a good rate of return thanks to longer maturitiesAs the PARP 2038 or the DICP 2033.
For the small investorsthe analyst continues indicating the convenience of the UVA fixed terms despite the fact that his stay was extended to six months.
Source: Ambito
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