Argentina

The government's failure to advance fiscal and structural reforms left the economy unprepared to withstand a series of external shocks, which triggered the beginning of a prolonged recession from the end of 1998. Social indicators - poverty, unemployment, crime - all remain at dangerous levels, and there is, as yet, little indication that the politicians are getting to grips with the key issues. Two years ago, a series of misguided decisions by its political leadership plunged …

…field for foreign investors. Government is anticipating some of the same investors who drained capital out of the country to invest their funds back into the economy under more favorable terms. Our group believes that despite the more consistent and generally positive economic outlook, Argentina's long-standing social problems will persist. As a consequence, political tension, protests and social anxiety will remain high. Therefore our decision would be to not invest in Argentina at this time.