Category

Argentina

Global markets

This "Contrarian Dream" Market Is All Upside Right Now

For decades, Argentina was radioactive for investors – a black hole for capital.

But a complete political shift has happened, and a brand-new president has instituted investor-friendly market reforms in a bid to return his country to its former economic glory.

This contrarian dream market is about to go on a bull run for the history books.

Global Economy

Part 2: Is the United States the Next Argentina?

As I wrote yesterday, government interventions in the marketplace and out of control cronyism have decimated Argentina, one of the most prolific economies of the early 20th century.

But after my week spent there, I can tell you the people of Argentina face an even more troubling problem. It's out of control inflation and it continues to grow worse.

And while it seems far removed, it provides a stern warning to anyone who thinks the U.S. is somehow immune to it all.

In fact, it's critical to understand what's behind it and how it is driving a massive gap between the rich and the poor there.

To tell you the truth what I found there was somewhat startling.

To continue reading, please click here…

Global Economy

Is the United States the Next Argentina?

Drive the streets of Buenos Aires, and you will see regal architecture that rivals wealthy European enclaves in Monaco or London.

And along tree-lined walkways, you will witness monuments that speak of the legacy of Argentina's finest moments.

But all of it is just a façade-a reminder of what used to be.

Despite having one of the most educated and entrepreneurial populations in the world, an abundance of natural resources, and a dynamic agricultural sector, Argentina has been in steep decline now for eighty years.

And things are only getting worse.

Without a doubt there's a lesson here– even though I recognize U.S. businesses have it comparatively easy when it comes to government mismanagement.

Even still, after spending the week immersed in Argentina's business culture, it's hard to argue the U.S. isn't on the same unsustainable path.

With the U.S. debt and obligations reaching new heights, new arbitrary regulations making it increasingly harder to conduct business, and examples of ruthless big government gone array in the AP and IRS targeting scandals, the parallels are too great to ignore.

This is far different from the recent comparisons to Greece–and actually much worse.

The truth is the United States is in danger of becoming the next Argentina.

Here's why: It's about business, always business.