Investors should also know that the government says the economy is running with a 10.5% inflation rate. Private economists, though, believe the inflation rate is closer to 25%. Nevertheless, it is still low compared to the country’s historic average of 207%.
“Inflation destroys P/E ratios, because the present value of future earnings is less, and the earnings are of poor quality,” Michael Krause, president of AltaVista, warned in the IBD article.
Global X FTSE Argentina 20 ETF
For more information on Argentina, visit our Argentina category.
Max Chen contributed to this article.