Friday, December 3

Elections: the Omertá code

Thus, although one of the uncertainty factors that weigh on the market -governance- will fade over time, the republic’s systemic risk will remain high.

But the Omertá code is not restricted to politics alone. Our comment a few days ago questioning the electoral euphoria of the financial establishment, forces us to some concrete examples.

Among the nonsense of September 13, we read a headline in Desinfo: “All in Argy: traders celebrate the rise in Argentine bonds and stocks and do not see a surge in the dollar.”

Since the friend Luis wrote that, the country risk rate has risen 18%, the “blue” rises 11%, the main ADRs in New York have fallen on average 8%, the MSCI Argentina Index falls 2% and the S&P Merval adds less of 1% in dollars.

That morning the “Willy” maintained “We are seeing an explosion of optimism in financial matters”, “The markets have bet that these results should moderate the influence of Cristina. Those from Portfolio maintained that “the result was extremely positive for the market and we expect a positive reaction in the price of Argentine assets”; the 1800s who expected “strong increases for foreign currency debt and equities as a result of the PASO” and who “expected strong gains”; etc.

Although we could go on and on with these examples -and add the “animated” ones from CZ, PW, MT and others-, it is not our intention to “scratch” anyone, but honestly, we are still surprised, once again, by the unprofessionalism that prevails in our market and the brutal code of Omertá that prevails.

After four consecutive decreases, yesterday the S&P Merval added 2.25%, closing at 89,512.44 points, in a round in which shares for $ 1,649 million were traded, divided into 39 increases, 2 without change and 23 losses. In a round in which the country risk rate climbed 1.1% to 1,743 bp, and the blue fell 0.25% to $ 201, Cedear was traded for $ 3,043 M. The ADRs, 0.38% higher.

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