Yesterday, the market made its opinion clear about President Javier Milei's management and the controversy surrounding the cryptocurrency $LIBRA. Investors focused on the economic situation rather than the political issues driven by opposition sectors.
The same day the New York Stock Exchange (NYSE) resumed activities after a long holiday, and when investors' reactions to the $LIBRA case were anticipated, Goldman Sachs highlighted the solidity of the fiscal adjustment of Milei's Government, while Bank of America (BofA) reaffirmed its positive outlook regarding Argentine assets.
In the Buenos Aires financial district, operators were surprised by the enormous surge of the S&P Merval (+6.1%) and told the media Ámbito that "the market perceives that the $LIBRA issue doesn't affect ordinary people, those on the street. They are the ones reaping the benefits of an improving economy."
Javier Milei en el Congreso nacional.
"As Clinton rightly said: 'It's the economy, stupid!' Ultimately, what really matters is the wallet, especially when the matter is such a sophisticated issue, with implications beyond Argentina and in a world as complex as cryptocurrencies," commented a renowned operator.
On his X account, the Minister of Economy, Luis "Toto" Caputo, shared a chart from the Goldman Sachs report, highlighting: "When solid economic essentials don't change, the occasional noise of the situation is often seen by the more experienced as an opportunity. Spoiler: this government will never change course."
That's what the investment bank highlighted: "A rapid fiscal adjustment, leading to a balanced budget, is the cornerstone of the macroeconomic rebalancing program being implemented in Argentina," the report states.
Javier Milei saludando a sus seguidores.
The document adds: "In 2024, the Government achieved a fiscal surplus of 0.3% of GDP, and for 2025, we expect President Milei's firm commitment to fiscal discipline to continue," the financial entity notes.
Meanwhile, Bank of America (BofA) released the results of a survey conducted among fund managers. The survey showed a positive outlook on Argentina: "69% expect further improvements in asset prices," the report states.
"In our opinion, Argentina has the most catalysts in the region: elections, disinflation, and reduction of regulatory risks," the financial institution asserts.
