Local Stock Market

[nikad]

I was wondering if there are any expats operating in the local stock/bonds market?

 

[dennisr]

Do not know exactly what you are looking for, the Buenos Aires Merval has limited participation: members only type thing. However, most of the components ( http://sg.finance.yahoo.com/q/cp?s=^MERV ) are available on NYSE as ADRs and can be purchased with online brokers: http://seekingalpha.com/article/169636-the-complete-list-of-argentina-adr-stocks

http://www.bolsar.com/net/principal/contenido.aspx

And to answer you question, do not know anyone on the exchange. But I did get a VIP tour once. Showed up at their doorstep and asked for a tour. They were so accommodating and gracious. Very impressed.
Good Luck

 

[nikad]

No, that is not what I meant I have bought some bonds in the local stock market and since I had read that there were some stock traders that had joined this forum, I was wondering if they have invested into any local papers, or if they were just operating foreign markets.

 

[studiodio]

buying bonds down here has intrigued me...the interest rates are very good...how was your experience Nikad? did you have any trouble cashing them out? did the tax man take out 30% at cash out?

 

[nikad]

buying bonds down here has intrigued me...the interest rates are very good...how was your experience Nikad? did you have any trouble cashing them out? did the tax man take out 30% at cash out?

I have bought them but am not going to sell them for now. You do not pay any taxes if you operate local bonds. The ones I bought have gone +118% this year ( in pesos ) and the same ones in usd have gone up by +82%. I do not think there is any stock out there that can beat them atm

 

[dennisr]

The Buenos Aires Merval index has not done too bad in the past 2 years: up about 250%. Do not forget about inflation and peso devaluation when you crunch your bond numbers.

 

[nikad]

The Buenos Aires Merval index has not done too bad in the past 2 years: up about 250%. Do not forget about inflation and peso devaluation when you crunch your bond numbers.

I know, but it is in my opinion the best option by far against inflation. With the dollar stuck in around 4 pesos ( and this is not likely to change much until at least the end of 2011 ) and 30% yearly inflation, some bonds get you covered and still make a nice profit ( there are also local bonds under NY law in US dollars and they still go very well against inflation ).

I figured I would ask on this forum, since typically Americans are used to investing in stocks, etc, whilst the average Argentine this is some sort of mystery: culturally Argentine invest in real estate, dollars, cdi deposits and that is pretty much it.

 

[dennisr]

For sure, keeping up with inflation is a home run. It truly is a tragedy the markets are not open to more Argentines. So many good companies and financial investments become private. A classic example is the Petrobras Argentine deal. It goes from a publicly traded company to a private enterprise. The list goes on and on. Watch for YPF to go private.
Have heard a lot about Argentine Bonds monetized to AR GDP growth. They seem to be the latest and greatest. Good Luck and make some bucks kid.

 

[A&A]

Nikad:

Did you have to use or broker or can you buy them direct inline through say an ETrade or Charles Schwab type account?

I must admit I am not as familiar with the bond market (price v. yield gets me dizzy), but I am looking or something that perhaps a steady rise and ok dividend (like utility stocks) Of course i guess thats what everyone looks for. But I am not adverse to some volatility which I am sure the Argentine market offers...

 

[davonz]

The ones I bought have gone +118% this year ( in pesos ) and the same ones in usd have gone up by +82%.

Whats is the coupon value and interest rate on these - and when are they due ?

I understand that they had dropped alot due to worries of argentinas economy, so you must have bought at the right time..