Argentina, among the riskiest countries to invest in, according to JP Morgan

The fall of Argentine stocks in recent days has set it back focus in country risk, the indicator that measures the JP Morgan bank on the basis of the difference between the debt securities of each nation compared to the United States, considered the safest country. From April, when it was around 1,700 basis points, it jumped to 2,200 on Thursday, an increase of 30%.

Hence, Argentina is located in third place in the standings of the riskiest countries (with greater chances of insolvency), below Venezuela, whose risk is directly incomparable, at 33,400 basis points, and El Salvador, which is at 2,500 points.

Venezuela defaulted in 2017 and hasn’t come out yet, according to Bloomberg Line. And El Salvador’s debt has been falling since the beginning of the year. The collapse of bitcoin also weighs on this fall, legal tender in that country and on which the country led by Nayib Bukele has bet heavily.

Behind these three countries, and not far behind, is Ecuador, with a risk of 900 as of June 13, and Honduras, with 830. Top five Bolivia closes with 566 basis points. On the other hand, Chile and Uruguay have the best indices, respectively with 182 and 147 points.

devastating relationship

“Ray Dalio, an important hedge fund manager which analyzes the situation of different countries by evaluating Investment opportunity, has just released its annual guide, which includes Argentina. puts it in the worst place of the investment ranking, e your description of the country is fatalPolitical scientist Lucas Romero wrote this Friday on Twitter.

The report by the leader of Bridgewater Associates, the world’s largest hedge fund, whose market analysis helped him predict the 2008 financial crisis, ranks Argentina in last place among the 24 economies analyzed.

“According to the latest readings of key indicators, Argentina is not a significant global power and is in gradual decline,” says the work.

weaknesses of the country, according to Dalio, are “its unfavorable economic and financial position, its relative low importance as a global financial center, its weak relative position in educationhis bad reading in innovation and technology, its relatively weak army, its relatively small economy, its relative irrelevance to world trade, its corruption and inconsistent rule of lawhis poor infrastructure and low investmentand its relatively low allocation of labor and capital. “

“The top eight power measures are somewhat weak today and, overall, are slowly decreasing,” he adds.

“Argentina is in a unfavorable position in their economic and financial cycles, with a high debt burden and relatively low projected real growth over the next 10 years (1.2% annually), “he says.

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