In this sense, the latest Market Expectations Survey (REM) published by the Central Bank during the first days of December reflected a monthly inflation expectation for the next six months at an average of 3.7%, with a peak of 4 , 0% for March 2022.
Taking into account that inflation will be one of the main threats to our pockets, It is essential to position itself in instruments that offer coverage against it, such as CER bonds. To this end, from IOL invertironline, an investor can position himself in the Common Investment Fund “Balanced AdCap II”, which invests in instruments adjusts its capital based on the variation of inflation plus profitability.
As a reference, at the end of November the fund yielded 49% in the year, exceeding the inflation rate for the period by 3 percentage points and widely exceeding fixed-term loans. Additionally, you can also opt for variable rate instruments that are convenient today. In this sense, the case of the The PBY22 bond, which, although it does not offer hedging against inflation, has a 50% annual yield that exceeds inflation expectations for the coming months.
For those who can opt for a longer investment term, an interesting alternative may be to target a portfolio made up of both local assets and CEDEARs.. These last assets represent foreign stocks that can be traded from our Investment Account in Argentina. With these instruments, in addition to allowing investment in securities of the most valuable companies in the United States, they also provide the advantage of being linked to the CCL dollar, providing coverage against increases in the financial exchange rate.
In this sense, CEDEARs of the “holding” type are attractive that invest in different companies, giving exposure to different sectors with the simplicity of investing in a single asset. A good alternative is Berkshire Hathaway (BRKB), the partnership of iconic investor Warren Buffet that invests in companies in sectors such as insurance, utilities, energy, transportation, manufacturing, retail and services.
In turn, another interesting sector to strategically position themselves are companies that invest in new technologies and that have recently seen their prices fall, presenting an interesting entry point. In this segment, Microsoft (MSFT) stands out, which is not only characterized by investing in innovative sectors (cloud computing, artificial intelligence, etc.) but also by its good financial results.
Investments for aggressive profiles
To conclude, those investors with a more aggressive risk profile can opt for the Common Investment Fund “Premier Variable Income” which aims to invest mainly in shares listed on BYMA that make up the S&P Merval index, so it may be a good alternative after the adjustment that the local market showed after the general elections.
This fund seeks long-term benefits by investing in companies with good economic and financial fundamentals, always using this index as a reference. It has 35% invested in shares in the energy sector, 26.5% in banks, 14.3% in metallurgical companies and only 2% in CEDEARS.
It is important to take into account the high volatility of the Argentine market, so it is suggested to assign a small position within the portfolio. As data, during the course of 2021 the investment fund returned 55.5% above the performance of the S&P Merval.