After the exchange rate turmoil, what savers and investors should expect in June

May was not just another month for savers and investors, since last week there was exchange turbulence, which led the blue dollar to accumulate a rise of $175the largest so far in 2024.

The financial advisor, Julian Bernatvisited the studios like every week. Latucumán FM 95.9where he referred to what the month that came to an end was like: “At the beginning of the month I recommended that one possibility was that a large part of the savings should be positioned in dollarized bonds because at any moment a shock could occur”.

“Obviously, the shock occurred and today it is not entirely clear what will happen in June: Last week there was an increase in the exchange rate, there is some noise, the country risk increases, which increases the cost of capital and lowers the prices of financial assets. Then it adjusts and stabilizes, the country risk drops again, the cost of capital drops and the price of assets rises, which is why you always have to wait.”he explained.

In that sense, he pointed out that “unless it is irremediable in the projection, one never has to go down. You have to wait for it to rise again, so, for example, the bonds had fallen significantly with the exchange rate, with the noise that there was, but then it was going to start to recover and then today it is recovering, but now you are left with a higher exchange rate which was the strategy.”

“In June, the entire agricultural liquidation process should be accelerated, which did not happen in May. This stability, plus the political part, which yesterday the opinion of the Bases Law was achieved, will obviously improve financial assets, but not the economy.“, clarified Bernat.

And he reiterated: “If the field liquidates what it should liquidate, that stability, plus the political part, financial assets should not suffer. Even inflation levels should not change, therefore the country risk should not rise either and financial assets should be fine.”