Within the investment portfolio, the CEDEARs (Argentine Deposit Certificates) were gaining ground, as well as the bonuses, that had juicy returns in recent months.
CEDEARs are papers that follow quotes of foreign companies in global markets and that are subscribed in pesos – also in dollars – but follow the fluctuations of the Cash with Settlement dollar (CCL). The costs are the same as trading shares in the local market and an account abroad is not needed.
Which CEDEARs does the market recommend?
Within the CEDEARs, a report by Grupo IEB recommends the SPY fund, the DIA ETF, Berkshire Hathaway (by Warren Buffett), Coca-Cola, Mercado Libre, UnitedHealt Group, Mc Donald’s, ETF QQQ, Vista Energy, Nvidia, Amazon, Meta, Alphabet, Microsoft, Walt Disney, and the EEM ETF.
For its part, PPI coincides with some such as the Spy ETF, Coca-Cola, QQQ, and EEM. And add ExxonMobile, Chevron, Bank of America, Johnson & Johnson, Procter & Gambel, Verizon, and JP Morgan.
The case of Nvidia is particular. Its shares have already skyrocketed 85% so far this year, but they still have a 22% upside potential until reaching US$1,100, according to Goldman Sachs.
According to the analyst Toshiya Harithe company still has a relatively attractive valuation compared to its technological peers, mainly due to the speed of its growth.
“We see positive earnings per share revisions driving another rally in the stock, especially with Nvidia trading at 35 times earnings, or just a 36% premium for our coverage universe to its average premium over the last three years of the year.” 160%,” indicated the expert.
“We believe Nvidia will remain the de facto industry standard for the foreseeable future given its competitive advantage spanning its hardware and software capabilities, as well as the installed base and ecosystem it has built over several decades, and the pace at which it is and we will be innovating for years to come,” summarized Hari.
What bonds to invest in?
The reduction in returns on virtual wallets and FCI discourages individuals from seeking returns in these instruments, encouraging alternatives such as CER bonds and longer duration fixed rate treasury bills.
The report from the Grupo IEB brokerage company simulated scenarios to calculate the yield of the bonds based on the sharp reduction in inflation and an upward shift in the curve with levels that could anticipate an exchange rate unification.
“Using these assumptions, we observe that the middle and long part of the CER curve is yielding above what a fixed term will yield after the rate cut, which will be around 3.4% TEM. Therefore, we believe that the The middle and long stretch of the curve is close to the floor at these levels,” the report states.
savings investments finance fixed term interest rates bonds
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But he adds: “However, there is a risk that inflation will decline more sharply than what the bonds have incorporated into their prices, so if this inflation path materializes, the CER bonds could correct a little more, since they are left with yields below 3.4% TEM. We particularly like the TX26 which even in the most adverse scenario continues to offer very competitive yields.”
Likewise, he warns that “despite the approval of the Base Law and the fiscal package in the lower house, the hard dollar debt continues to lateralize, with the GD30 and AL30 finding resistance at the levels of USD 60 and USD 63 respectively.” It is worth noting that the bonds closed last month with average increases in the case of the 2030 bonds of 8.6%. Since the beginning of the year they have accumulated an average yield of 53 %, while since the runoff the performance has already added up to 106.7%.
Among the bonds that different analysts recommend are the BOPREAL Series 1B – BPOB7, Global 2035, Treasury Bond adjustable by CER maturity 2026 – TX26, and Global Bond of the Argentine Republic 2035 – GD35.
