Latin currencies

[Caribbean Cool]

As people make their life's decisions...especially in regard to financial decisions, it might be constructive to know that the following Latin American currencies are really hurting:

The Real....new all time low
Chilean Peso....new all time low
Colombia Peso....inches from an all time low
Venezuela....there is no currency

and then there is the Argentine Peso....the most fragile of all. It's hard to be optimistic about any of these currencies.

 

[Ries]

I dont know anybody who is investing in any of these currencies. Certainly Argentines dont invest in pesos- they convert to dollars ASAP.
Argentines, (and me) invest in Argentine real estate, but thats not a currency, and, historically, its not been a bad investment.

The other thing Argentines do, which I kind of assume also happens in other South American countries, is invest in inventory. Businesses here stock up when they have cash, because, given the constant inflation and vagaries of imports, you know that it will be worth more in the future than if you left your assets in pesos.

 

[Caribbean Cool]

It is not about investing in other currencies. Sometime we are so centered on where we are standing that we miss the bigger picture. The whole region is deteriorating at a historic pace. I don't have an answer or a solution but what investment CAN be deemed safe these days? Maybe the gold in your teeth!!

 

[jblaze5779]

I dont know anybody who is investing in any of these currencies. Certainly Argentines dont invest in pesos- they convert to dollars ASAP.
Argentines, (and me) invest in Argentine real estate, but thats not a currency, and, historically, its not been a bad investment.

The other thing Argentines do, which I kind of assume also happens in other South American countries, is invest in inventory. Businesses here stock up when they have cash, because, given the constant inflation and vagaries of imports, you know that it will be worth more in the future than if you left your assets in pesos.

Is that how these stores in town stay in business even though I never see anyone in them? All the clothing stores are empty but somehow they're always open.

 

[Ries]

I think the stores that are empty but still in business is a different phenom.
Unlike in the USA, where there was a big article in the NYT this week about a neighborhood hardware store whose rent is now $10,800 a month, most small businesses in BA own their locales, and their monthly overhead is tiny, relatively speaking. And, often, these stores are family run, and they serve a psychological purpose to keep the owner alive, because, if he or she retired, they would be dead in a month.

There was a recent article in the WSJ, about a big BA motorcycle company- which talks about the stockpiling inventory in advance of inflation. It says he currently has 1200 motorcycles in stock, as a form of inflation protection, as well as having goods on the ground in Argentina, in advance of unknown tariff or import laws to come.

Why Argentina Faces an Economic Crisis. Again.

Why Argentina Faces an Economic Crisis. Again.

ih.advfn.com

The whole globe is "deteriorating", if you look at currencies.
But anybody who travels, or works in different countries, has been juggling this sort of thing- I know, I sometimes have to buy things priced in Euros, and I live right near Canada in the USA, as well as in BA- so I keep track of exchange rates, inflation, and where my money should be.
But my investment in BA real estate has been a good experience, and, when the time comes for my kids to sell it, it will be a better long term gain than parking dollars in an index fund.

 

[Weyland]

It is not about investing in other currencies. Sometime we are so centered on where we are standing that we miss the bigger picture. The whole region is deteriorating at a historic pace. I don't have an answer or a solution but what investment CAN be deemed safe these days? Maybe the gold in your teeth!!

Gold is a crap investment.

The closest thing to risk free are t bills. As Ries said most South Americans, especially those in inflationary environments, don't stock pile cash in their currency. They invest in real estate home and abroad, keep cash in usd or stocks in the US. That's why eliminating capital controls in Arg proved to be so disastrous. Anyone with extra money moved it out of Argentina as quickly as possible.

 

[Ries]

I know many argentines who own real estate up and down the eastern seaboard of the USA. NYC, DC, Miami- bought anywhere from 30 years ago til last month. In 2008, I know a couple who bought condos in north Miami for under 40KUSD each. Now worth well over 100kUSD each. Argentines have actually gotten very saavy about parking money safely, in ladrillos, for sure, both in Argentina and abroad. At the very least, when your adult kids cant find a job, they have somewhere to live- a situation I also know several people taking advantage of right now.

 

[Ceviche]

I know many argentines who own real estate up and down the eastern seaboard of the USA. NYC, DC, Miami- bought anywhere from 30 years ago til last month. In 2008, I know a couple who bought condos in north Miami for under 40KUSD each. Now worth well over 100kUSD each. Argentines have actually gotten very saavy about parking money safely, in ladrillos, for sure, both in Argentina and abroad. At the very least, when your adult kids cant find a job, they have somewhere to live- a situation I also know several people taking advantage of right now.

As of today, where "exactly" will you advice to park money to an Argentina who has a spare 50k or 100k..

 

[Caribbean Cool]

I personally, if giving advice, would never advise anyone to buy gold. Except if anyone ever tells you NOT to buy gold....get the hell away from them.

 

[Weyland]

I personally, if giving advice, would never advise anyone to buy gold. Except if anyone ever tells you NOT to buy gold....get the hell away from them.

Haha

I didn't say don't buy it. Do what you want. Just that it's a crap investment. I don't think it's a bad idea to have a small percentage as a hedge.