Goodbye fixed term: what are the most recommended assets to invest in September?

September starts and the challenge in Argentina today for any investor is find profitability in their weights. It is a difficult objective in the current context because inflation is still above the rate offered by most banks for traditional fixed-term deposits and The slowdown in economic prices also makes UVA less attractive. With a monetary policy rate below the inflation index and a lot of volatility in equities due to the global context and local uncertainty, There are few attractive investment alternatives for the ninth month of this year.

“For conservative investors, or those with a short-term horizon, who seek to protect themselves against inflation, the best alternative is the Capitalization Letters (LECAP) or bonds in pesos, although with regard to the latter, especially the adjustable ones, it must be taken into account that they have risen a lot in this last month and the prices may be expensive,” he points out in dialogue with Scope the stock market expert Marcelo Bastante. And he anticipates that we must be attentive to the upcoming Treasury tenders with LECAPs.

LECAP, the star in September

Meanwhile, for retail investors less familiar with these instruments, he mentions that “There are several fixed-income funds that invest in LECAPs and investors have the advantage of being able to enter and exit at any time.” With a yield of around 4.3%, these instruments could beat inflation in the new month.

Mauro Cognetta, investment advisor at Global Focus Investmentsagrees that the most logical thing for September is “to make a positioning decision in which it must be considered that the dollar is not going to be the most attractive option.” And, in that sense, he sees the instruments in pesos as the most attractive, whether it be the LECAP, or some fund that invests in these letters. “In the first case, We like fixed-income instruments in pesos“, he notes.

In the same sense, Juan Ignacio Alra, Tpcg Group Portfolio Managerpoints out that “today, attractive short-term instruments in pesos and with the possible stabilization of the dollar are the LECAPthat there is a great variety.” He points out that they are a better option than any money market fund in Argentina today and they are very easy to invest in. On the other hand, if you are looking for more profitable investments over a longer period of time, you would have to look for other types of instruments.

Investments for September: riskier instruments in fixed income

And, in that sense, Bastante mentions for riskier investors or those with longer-term horizons, “Dollar bonds”such as the Bonares or the Globales in that currency (AL and GD), which “continue to look attractive and are at very low parities, despite having recovered ground in the last month.” He explains that the risk, in this case, is that no one can specify when they will “make the leap,” which is why it is only recommended for those who have the financial capacity to hold these bonds for a long period.

“The same is true for the local stock market, although Company stocks recovered ground after days of very significant declines at the beginning of the month, prices in historical terms remain low with potential for growth. But it is an even riskier investment than sovereign bonds,” Bastante points out. Therefore, those who invest in these instruments must not only have the financial capacity to hold them for a long time, but also the appetite to do so, since they can experience strong volatilities.

Cognetta points out the same thing when he points out that “in terms of fixed or variable income, if the investor can tolerate risks, fixed income is more interesting because it is cheaper than variable income in relative terms measured in dollars.” And in this sense, “hard dollar” sovereign bonds, global bondssuch as the GD35 or the GD38, that is, the medium or long range ones.

And, as regards equities, he believes that “we must look at them with a more selective eye”, with a focus on energy. “If we think about company shares, the energy sector has great potential and I would think about it.” Vista Oil & Gas and Pampa Energy“These are companies that have good prospects and I would not move them from the portfolio despite some episodes of volatility that may appear,” he points out.

He also does not rule out the negotiable obligations of some top-level companies with good credit analysis, such as Vista or John Deere, but admits that it is difficult to enter these ONs. For this reason, he points out that it is necessary to see which companies have liquidity and volume in the secondary market. “We like the negotiable obligations of companies that have volume and liquidity, such as YPF, Gemsa, Telecom, Genneia or Loma Negra,” he points out.

Cedears: a star company for September

Meanwhile, for those who want to dollarize Eric Paniagua, analyst at the consulting firm Epyca, considers that a good option is the Nvidia CedearThe chip and semiconductor manufacturer’s earnings release this week will be a key event that could influence the technology sector and the market in general, especially after Jerome Powell’s comments on rate cuts.

The semiconductor company, a benchmark for the rise of artificial intelligence (AI)will report the results of the second fiscal quarter this Wednesday, August 28, and one fact that cannot be overlooked is that The company has exceeded earnings and sales expectations for the past six quarters. Therefore, it may be an investment opportunity for many looking to dollarize pesos.

Thus, everything indicates that, for September, the star is fixed income, with the LECAPs in the leadalthough analysts do not rule out some portfolio diversification with some riskier assets like bonds or ONs and they look very selectively at fixed income and Cedears.