Health & Fitness
International Investing - Argentina
The world is a big place – there are over 190 countries and 7 billion people in the world, which really boggles the mind if you sit down and think about it. In addition to being an interesting intellectual exercise, this fact can also have broad implications for your investments and your financial future. It is easy to stay focused on U.S. firms, news, and events during the day-to-day grind, but it is always important to be aware of your surroundings – especially when it comes to your investments. With that in mind, this series of articles will focus on countries and investment opportunities outside the United States that you might not usually hear about.
As always, be sure to consult a financial services professional familiar with both the potential investment and your unique financial situation before embarking on any investment program.
Argentina
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Argentina is normally associated with beautiful scenery, fantastic cultural activities, and wonderful food. If your analysis of the country ended with that preliminary analysis, however, it would be woefully incomplete. Argentina has a somewhat checkered history with the international debt community – during the late 1980s and 1990s the nation suffered from bouts of extreme inflation and economic turmoil that eventually resulted in a default on the nations sovereign debt – causing billions in losses for international investors. In spite of this Argentina still garners attention from international investors as a potential place to put their funds to work.
Following the tech bubble (and bust) of 2001 the nation’s government has been very proactive in trying to stimulate economic growth and development. There are several reasons why Argentina, despite its history of economic instability, is drawing international investors once again. A full member of Mercosur, a regional trade agreement, grants the nation preferential treatment regarding tariffs, and access to a market of 275 million people that has a nominal value of $3.5 trillion. A diversified and well-balanced economy, investments by both government and private investors, and a strong export based economy are also reasons why this country is attracting the attention of the international investing community.
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When looking at investing in Argentina, there are two primary ways to go about it – ADRs or direct purchases. An ADR is basically a certificate held by a U.S. banking institution that represents a certain number of shares in the foreign company, and is held by the U.S. institution. This helps to cut down on the administrative fees and other costs that would otherwise be incurred. For more direct exposure, you can also purchase shares directly from Argentinean stock exchanges if your broker offers those services to its retail investor base (you and me).
Some of the largest and most liquid ADR’s that are available for investors to utilize in order to invest in Argentina are TEQ (Telecom Argentina S.A.), TGS (Transportation de Gas del Sur S.A.), TS (Tenaris S.A.), and BMA (Banco Marco S.A.). For investors that are seeking to invest in an ETF that is solely dedicated to tracking the Argentinean economy, ARGT (FTSE Argentina 20 ETF) is the most liquid and well-known option.
As always, I have attached some links with more information
Happy Reading!
http://internationalinvest.about.com/od/globalmarkets101/a/A-Guide-To-Investing-In-Argentina.htm
