After 9 years in the frontier markets doghouse, MSCI may likely upgrade Argentina back to emerging markets in June.
In addition to a potential upgrade bump, an improving macroeconomic backdrop makes Argentina particularly attractive for investors.
Playing the upgrade with the Global X MSCI Argentina ETF is a flawed strategy.
Instead, we suggest to invest in Argentina with stocks for 3 different levels of engagement.
Argentina will be in the spotlight for two exciting reasons in June this year. Millions of fans will be donning their Albiceleste jerseys to rally for Argentina’s national team in the 2018 FIFA World Cup to be held in Russia, the premier event for the world’s most popular sport, football .
Also in June, millions of dollars will be poised to enter the country and rally the Buenos Aires stock exchange should MSCI finally elevate the nation’s classification from frontier market back to emerging market status. Investors can position themselves now to prepare for an “upgrade bump”.
Early in the 20th century, Argentina was a wealthy, prosperous, first-class nation.
Considered the most European of all Latin American countries, the capital, Buenos Aires, was once called the Paris of South America. A strong, active stock and commodity exchange allowed capital to move freely into the country and build a strong nation.
Post World War II, however, troubled times befell the land of the gaucho and a series of recessions, military coups and protectionism left the country behind as Europe and Japan rebuilt and the United States set the terms for the new international order.