GGAL
📈 Allocate 30% to Argentine stocks, excluding energy, to diversify from Petrobras.
🏦 Focus on banks like Grupo Galicia and BBVA, anticipating economic growth.
🇦🇷 Argentina’s economy presents a mix of value and growth opportunities.
💼 Banks are expected to benefit from increased lending as the economy recovers.
@Academiadeinversion:
“I would put the other 30% of the portfolio in Argentine stocks. I would remove the energy ones because otherwise, you would be very heavily weighted in oil and gas because we have a lot of weight with Petrobras. And I would put the other ADRs of 30%. I would put, I don’t know, Cepu, I would put Loma, I would put, what’s it called, the one, the one, the agriculture one, uh, it doesn’t come to me now. Let’s see if it comes to Adri, Cresud, Cresud, that’s it. I would buy Loma, I would buy Cresud, I would buy, and I, and I, and I would stay, and I would stay there. Oh, and the banks, Grupo Galicia, mainly Grupo Galicia and BBVA, with that other 30%. Argentina right now is a mix between value and growth. You have to look at both. You have to look at both the growth and how cheap they are. And, and depending on how, if you are able to see this, you will be able to invest in Argentina or not. I personally see a lot, a lot of capacity for growth within Argentina, especially looking at the banks. Because normally, a bank has, has a reserve ratio of 5 to 1. And in, and in, and in Argentina, you currently have a reserve ratio of 0.3. So only 33% of the, of the deposits they have, they have lent. So, the 3% they have in reserve, not that they have lent, I don’t understand. No, no, no, the 70% they have in reserve, they have it in cash. So, but, uh, it’s not, that is, you said the reserve ratio, maybe I’m missing something, uh, reserve ratio, but the reserve ratio is what you have in cash. Sure, so they have 0.3, they have, of 100%, they have 70% in cash. So that would be a reserve ratio of 0.7, not 0.3. I ask, well, they have lent 0.3, sorry, yes, you’re right. That is, they have lent 0.7, and they have 0.3 left, which is still nothing because here the banks have usually lent the other way around. They have lent only 30% of the money they have in cash, uh, and what is the reserve ratio of banks in Europe, in the United States? Well, normally, normally for every dollar they have in cash, they have 6 lent. So, as the banks are able to give more credit to the economy, the economy will grow. So I think the banks are going to be the first beneficiaries, or they are the thermometer of what is happening in the Argentine economy. As a result of the banks starting to lend more and more money, there will be more and more economic activity. If there is more and more economic activity, there will be more, more money within the, within society itself. There will be more consumption, there will be more, more creation of wealth, and, and that, that, well, that, that’s my idea. That’s why, that’s why I was saying that the banks should be included in the other part of the 30%.”
Watch the exact part of the video where Mr. Timbits talks about Argentine Stocks here:
View the video on YouTube.
Read more articles featuring the most recent analysis of Grupo Financiero Galicia (GGAL) at this link: GGAL stock.
