Mirage... Argentina

Tha chart we show below is the MERVAL, the Argentinian index. Surprising?

But we all thought Argentina was doing terrible... Why did it happen? Easy. Because we pay the stocks in our portfolio in local currency. If the currency sinks, the stocks go up in price (denominator going down, ratio going up). It is not the first time it has happened. During the corralito, people felt safer owning a piece of a good company than cash.

Here we show ARS/USD, pesos against dollars:

Most of the stock market movement is explained by the currency..., and this is not even the real exchange, but that is another story.