Catastrophic Drop In Argentina Merval Calls To Mind John Templeton
Burbuja is Spanish for bubble. And for a number of years 1999-2002 Argentina suffered a depression they refer to as the Burbuja.
In January of 2001, the Merval (MERV) stood at 532, by November of that same year the index was down to 202. The country was in crisis. They blew through a number of presidents, and went off dollar parity (1 peso = 1 dollar).
By May of 2008, the Merval hit a recovery high of 2205, followed by another crash that ended in November of 2008 at 993.
But from there it has been clear sailing. It hit a high of 42057 just this past July.
The stock market correction is clearly connected to political events in Argentina. On Sunday, the primary election was held, and the current center right President Macri secured 32%, a huge disappointment, and ...