CONGRATULATIONS TO THE PEOPLE OF ARGENTINA! A NEW DAWN - A NEW DAY!
The article below was published long before yesterday's election: Congratulation Mr. Milei on your stunning victory!
Don't Cry For Me Argentina - Milei vs Massa - The Runoff is on Nov.19th.
Argentina is the land of 130% Interest and 200% Inflation.
The Big Question:
Does investing in Companies like Argentina Lithium, LIT, PNXLF and other companies like Argentina Lithium make sense?
Analysis and Outlook - It take more than two to tango!
Milei & Massa simply can't dance around the Hyper Inflation + Hyper Interest Rates.
The opposition candidate, known as Chainsaw Milei, threatened to burn down the Central Bank to Stop Inflation. Milei is a professor of economics, new to politics and has a zero governing experience but his theatrics and threats made him very popular.
Argentinians are tired of gargantuan inflation (200%) and super high interest rates (130%). Argentinians are looking for a change any change but, unfortunately, burning down the central bank is not gonna solve their problem.
Massa, on the other hand, ironically is the current Minister of Economy, who is slightly ahead in the polls, his party has ruled Argentina for decades and the party is popular among the poor. Massa in a dramatic move has eliminated income tax and increased cash hand-out to the poor. As you know, even the filthy rich like free money!
Regardless who wins, investing in Argentina is very risky, Mining Stocks pose a huge risk.
The bottom line question for American investors: Should they invest in Companies like Argentina Lithium?
The problem is the math: No sane banker will lend money to a junior mining company operating in Argentina. Junior mining companies do not generate cash, They Burn an Awful Amount of Cash. Mining companies, unfortunately, have a hard-time accessing capital in the current hyper inflation, hyper interest rate environment, because the banks simply can't make the math work for Argentina.
The Key Takeaway: $45 Billion Dollar loan from the IMF failed to make any dent, and we don't think American bankers are too anxious to lend either. It will take a long time to tamp-down the inflation and bring the interest rate down to under 10%.
The Bottom Line: There are plenty of safer investment opportunities out there.
Why sink your hard earned money in a blackhole?
The Editor
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