Unknowingly, 2023 has passed, and looking back on 2023, the global economy is facing many uncertainties, especially in the context of continuous interest rate hikes in Europe and the United States, the global economic slowdown is more obvious.
However, contrary to the slowdown in global economic growth, after the global interest rate hike has come to an end, most of the world's ** will have varying degrees ** in 2023, and many of them will increase by more than 100%.
Through the statistics of some of the world's major stock indexes, among the world's major **The biggest gainer in the stock index in 2023 was Argentina's MERV, which rose by a whopping 347%, with an average daily increase of nearly 1%!
If you buy this index at the beginning of 2023, the return rate will reach 347% by the end of the year, which is far more than the return rate of most financial assets in the world.
So why is Argentina** rising so much in 2023?
On the one hand, Argentina** is denominated in pesos, and with the sharp depreciation of the peso, the corresponding types of assets** have seen a large **, of course, no exception.
On the other hand, Argentina's current economy is sluggish, and residents have nowhere to spend their money, so they can only invest their money in it, which in turn promotes the development of Argentina.
There is also the most critical, the merval index that will rise by more than 347% in 2023 is the merval index, the merval index constituents are mainly some large state-owned enterprises in Argentina, including Argentina's telecommunications, oil, banks, steel mills and other large companies, in 2023, these large state-owned enterprises have seen a large **, which is mainly a few good news.
On the one hand, before Argentina's new ** Milley came to power, he declared that he would take action against these state-owned enterprises, and the first is to reduce the subsidies of these state-owned enterprises to the people;The second is to allow these large state-owned enterprises to raise their prices, such as Argentina's oil companies, which have raised their retail prices significantlyIn this way, the profits of these state-owned enterprises will naturally be the best, which is good news for them.
There is also an Argentine ** Milley is actively promoting the privatization of Argentine state-owned enterprises, and most of these state-owned enterprises are some energy institutions related to electricity, oil, etc., which are themselves a piece of fat, so a lot of capital wants to get a piece of the pie, so with a sense of smell agile capital has long been deployed in these Argentine state-owned enterprises, which also directly drives the substantial increase of these state-owned enterprises, and some Argentine state-owned enterprises can rise by more than 20% in a single day.
Affected by the above factors, the sharp ** of the Argentine stock index in 2023 is somewhat unexpected, but it is also reasonable.
It stands to reason that the sharp rise should be a happy thing for the majority of investors in Argentina, after all, everyone's property has been greatly increasedHowever, judging from the actual situation in Argentina, many shareholders may not be happy, and may even be in a painful state.
Why?The main thing is that ** is rising, but prices are also soaring.
In recent years, Argentina's monetary policy has been in a state of flux, and the Argentine peso is also one of the fastest depreciating currencies in the world, especially since 2023, the Argentine currency has continued to depreciate, especially in December, after Argentina's new ** took office, he directly announced that the Argentine peso depreciated by 54% against the dollar.
After the rapid depreciation of the Argentine peso, prices in Argentina have also soared rapidly, especially since December 2023, Argentine prices** are more exaggerated, in the past period, Argentina's gasoline *** 80%;Supermarket food**30%-300%;Building materials**30%-80%;Airline fare**130%.
And after the sharp depreciation of the Argentine peso, many people have exchanged their money for dollars, resulting in a shortage of dollars, and many dollar-denominated prices have risen more significantly, such as some luxury hotels in popular attractions only charge dollars, and the average room price has risen from $400 in the previous peak season to more than $1,500, an increase of more than 270% in a month or so.
In the face of such crazy prices, although Argentine investors can make some money from it, it is unknown whether the money earned can offset the prices.
For example, some shareholders have 100% of their assets in the past year, but if the price of goods has increased by 120%, then the purchasing power of his assets in the company has actually shrunk, and the money in the original money can buy things for 100 yuan, but now with the price of things, they can only buy things for 83 yuan.
So for Argentina's soaring, there are mixed joys and sorrows, and for the majority of ordinary people, the soaring price has not brought real benefits, and may even be more painful.