Friday, February 21, 2020

Barron's: Argentina Needs More Than Loans. Investors Should Stay Away for Now.

By SIMON CONSTABLE

Don’t let the prospect of an international debt bailout tempt you into buying Argentine stocks anytime soon.

The longer-term prospects for the economy are poor because of misguided policies and the systemic weakness of the country’s institutions. Those problems are unlikely to get fixed by the recent meeting with the International Monetary Fund, experts say.

“This is a no-go situation,” says Steve Hanke, professor of applied economics at Johns Hopkins University. He was also a formal and informal economic adviser to the Argentine government from the late 1980s to the mid-1990s. Read more here.

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