ARGT ETF

I recommend buying the Global X MSCI Argentina ETF (NYSEARCA: ARGT) due to Argentina's strong economic reforms and projected GDP growth of 8.5% in 3Q24. Despite a 60% price increase this year, ARGT's P/E ratio remains lower than the global average, indicating a large margin of safety. Valuation analysis shows ARGT trading at 13.5x earnings, below its 5-year average, suggesting an upside of 14.8% to 18%.

The Global X MSCI Argentina ETF has surged nearly 35% in 2024, driven by President Milei's austerity measures and economic reforms. Key holdings like MercadoLibre, YPF Sociedad Anónima, and Argentine banks have significantly contributed to ARGT's performance, reflecting Argentina's economic recovery. Despite the ETF's price appreciation, valuations remain attractive compared to other emerging market peers, and ARGT still offers upside potential.

US equities have outperformed the rest of the world for a long time now. While the US is up 58% on a total return basis during the current bull market, the rest of the world is up 13.5 percentage points less at +44.5%. Looking at the international dividend ETF over a longer time frame, over the last five years, it's up 20.6% in price and more than double that on a total return basis.

Over the last couple of years, ARGT has delivered outstanding alpha of 3.5x relative to global markets. Argentina's growth prospects have taken another hit. ARGT's top holding is more exposed to the Brazilian region with over half its revenues coming from there.

Argentine equities have rallied post-election. But valuations remain quite reasonable relative to the improving fundamentals. Low-cost ARGT remains a great play on the structural reform story.

This quarter's 13Fs and insider buys offer vital clues about what the smart money is betting on. Argentina, small caps, Bitcoin, and China are essential market areas to track.

Wall Street delivered an upbeat performance last week due to dovish Fed cues.

The Fed wants to cut interest rates and add liquidity before the US election, but the market is not cooperating.

ARGT offers access to the Argentine economy through the MSCI All Argentina 25/50 Index. Despite economic challenges, Argentina's government has implemented measures to combat hyperinflation, which could positively impact ARGT in the long term. ARGT has significant exposure to sectors like internet and technology, regional banks, integrated oil, and utilities, reflecting Argentina's economic reliance on these areas.