Today we Argentines live in moments of uncertainty in our economies, whether we have “a lot or a little”, the devaluation of the currency erodes capital and we Argentines know it well. The years of hyperinflation distress us and we are afraid of repeating those moments, that is why we want to prepare ourselves and perhaps we are unaware of tools that can help us.
Commerce and companies usually resort to advance purchases and stock increases, which, although it can be a good measure, its excess has a financial cost that is not always well evaluated (capital stopped for a longer time than necessary has a cost that should be avoided. ), this excess inventory removes the flexibility of variants and alternatives that could arise along the way, they occupy a place that should be used for another purpose and a series of additional complications in addition to those inherent to the expiration if the merchandise has them. But what to do then? The first thing is to know their existence, be encouraged to try them and incorporate them as another financial link in money management.
The Financial Market brings a great contribution to the coverage that is at your fingertips, with free applications, the financial management of a business can change from one day to the next. Liquid money placed in a Money Market fund remains liquid while generating interest close to a fixed term or, other funds with redemption delays of 24 or 48 hours. They may be surpassing this comparison and with only minor planning such as planning a current payment 2 days in advance.
Well, we talked above about diversity of tools, but which ones? The liquidity funds already mentioned: Money Market funds They allow money to be entered and left in 1 or 2 days, although the average retention period is normally 7 to 30 days. They are funds that have great liquidity supported by remunerated accounts and fixed terms that approximate the bank’s fixed term. The “sureties” which are special fixed terms that are negotiated in the market between offeror and demander for very short terms (including a weekend, for example, or a few days or weeks.
When what is sought is to avoid being trapped in a more abrupt devaluation of the exchange rate such as what happened after the PASO elections, we refer to instruments that maintain a link to the dollar such as for example Common Investment Funds, These contain CER letters or bonds in their constitution that follow the evolution of this currency or inflation. A variant widely used in recent years is CEDEARs (Argentine Certificates of Deposits) these CEDEARs represent the evolution of foreign shares but are traded in pesos in the Argentine market and their value depends on: the price in the market of origin and the value of the CCL dollar (dollar counted with settlement) here in Argentina. Thinking about these certificates requires understanding that they are share investments in foreign companies, with which the investor is assuming a “risk” inherent to the ACTION, (thinking about solid companies, that risk will only be for the moment – it may have a momentary drop – not permanent loss)
Other exchange protection alternatives are ACTIONS in itself, which, in the event of increases in the dollar, will reflect it in a greater or lesser term in the price. It is clear that shares are company assets and consequently risky investments such as CEDEARs that must be evaluated together with a specialist and with adequate diversification to minimize these risks.
Uncertainty can be minimized and it is important to be open-minded to new tools that are there to help as floating complements that, without knowing what will happen, will respond when the time comes, mitigating the adverse effects of a changing economy like ours.
Contact: IG and FB: Investments – HJD; WhatsApp: 2474-513620
by CEDOC
