In the midst of the political and economic crisis that is shaking the government, a well-known stock market financial analyst has launched a dramatic warning about the future of the country over the next few months claiming they will be “the worst” in 20 years.
“We live the worst four months of the next 20 years“, he threw Augustus Darget in an interview with Radio Mitre, after stressing that the “credibility” of the government and its economic policies “is totally shattered”.
Additionally, the president of Silver Cloud Advisors focused on the PASO election in August, speaking it out “the optimism” of the markets “is in the next government”.
“April and May are months in which when there is disorder, the dispossession of the peso accelerates. Listening to four very traditional economists such as Santangelo, Cavallo, Artana and De Pablo, the four agree on the fact that perhaps we have before us an inflation of the 8% and that optimism is in the next government and now there is nothing to wait for,” he insisted.
Focusing on the importance of PASO, Darget argued that “everything will be defined there” for the future. Furthermore, he said that a minister like Sergio Massa, who takes office in the midst of the crisis, they take “hot irons” and “they are firefighters”.
“In 3 months we will have STEP and everything will be defined there. I do not judge ministers who take hot irons. It happened to Jesús Rodríguez, to Hernán Lacunza and now to Sergio Massa, ”said the analyst recounting the harsh prognosis of him.
He went further, Darget, and underlined: “Ministers are firefighters at the moment. Maybe they put out a fire for two days and then they get a loan, the foreign exchange market calms down and it goes on.”
However, and despite the warning about the difficulty of the scenario he raised, Darget stressed that this Monday on the New York Stock Exchange, Argentine shares rose “strongly and in dollars”.
“That means that beyond what we’re all seeing in the near term, there’s another horizon that the market is seeing and it’s more optimistic,” he said.
“The Shot Was Saw Coming”
Three economists who have been consulted by Clarín in the last few hours agreed that the new hit of the “blue” dollar and the impact on inflation was something they saw coming.
“It’s part of the volatility and uncertainty we’re seeing in the market, the result of a totally unbalanced economy”said Dante Sica, former Minister of Production of Cambiemos and current collaborator of Patricia Bullrich, pre-candidate of the PRO for the Presidency.
For his part, Ricardo Delgado, who was an official of the Ministry of the Interior, but in the past was also close to the Minister of the Economy -Sergio Massa-, specified: “I would not define it as a currency race in the classical sense, an outflow of peso funds and dollarization of portfolios. Mutual funds and banks are not demonstrating that they are easing certain needs.”
Meanwhile, the former director of Banco Nación and member of the Frente de Todos, Claudio Lozano, said that “there is a combination of fragility in government policy, drought and irresponsible statements by the opposition”.
Source: Clarin
