Navigating Your Investments: A Look at Top Performing Assets
With the December 2024 bonus top of mind, savvy investors are seeking opportunities to grow their wealth. Keeping in mind the diverse goals of each saver, here’s a breakdown of top-performing assets that can deliver strong returns in the months ahead:
Short-Term Wins: Lecap S30Y5 and CER T2X5 Bonus
For those with a short-term investment horizon, adding Lecap S30Y5 to your portfolio presents an intriguing opportunity. The Treasury’s issuance of notes due in May 2025 allows us to capitalize on a short-term carry trade. This strategy ideally generates an effective monthly interest rate of 2.9%, likely in line with or exceeding future inflation. Not only does this position reduce portfolio risk and duration, but it also allows us to achieve attractive returns above inflation if the current inflationary trend softens.
Secondly, from a short-term perspective, the CER T2X5 Bonus is also worth considering. Its annual return to date is CER+4%, making it an excellent choice for safeguarding capital from inflation while ensuring returns stay ahead of the curve.
In an environment of declining inflation, this bond allows us to earn returns based on past inflation, acting as a hedge if inflation doesn’t cool down as quickly as markets predict. The expected monthly yield for the CER T2X5 Bonus is 3.0%.
Dollar Diversification and Passive Income: FCI IOL Dollar Savings Plus
For those seeking to dollarize their investments while earning passive income, FCI IOL Dollar Savings Plus (IOLDOLD) emerges as a compelling option. This fund, designed for conservative investors, allows anyone to invest in U.S. dollars through a simple, secure approach. Projected annual returns range between 6% and 7%.
IOLDOLD currently invests in negotiable debt and maintains a diversified portfolio across industries. Although we prioritize energy, public services, and oil and gas, no single sector comprises more than 50% of the fund.
Long-Term Growth with Bono Global 2035
Looking towards the medium term, holding positions in fixed income remains a reliable strategy.
Bono Global 2035 (GD35) stands out as a strong contender.
Our investment strategy team selected this sovereign bond, which currently offers a USD yield of 11.5%. We believe this instrument signals a positive outlook on the possibility of economic normalization.
Boosting Savings Through Strategic Investments: CEDEAR and Argentine Stocks
For investors seeking to enhance their savings through active participation and a willingness to embrace calculated risks, we recommend exploring CEDEARs and two prominent Argentine stocks.
CEDEAR del ETF del S&P500 (SPY): This fund aims to mirror the behavior of the S&P 500 Index, one of the most significant U.S. benchmark stock indexes. Like the index it tracks, the CEDEAR focuses on large-cap companies.
YPF (YPFD): This leading Argentine energy company engages in the exploration, production, refining, and marketing of oil and natural gas. Additionally, YPF plays a crucial role in electricity generation.
YPF delivered solid second quarter results, with net profit reaching $4.935 billion – a 15% increase from the previous quarter. The company also made significant strides in its expansion strategy by securing the location for its massive LNG plant in Punta Colorada.
We believe the Vaca Muerta industry holds immense potential, and YPF is strategically positioned for optimization and expansion. It now also possesses the necessary tools to advance key projects, ultimately unlocking substantial future value.
TRAN: As Argentina’s primary operator of high-voltage electricity, TRAN manages a network of over 14,000 kilometers of transmission lines, connecting key power generation centers to consumption regions throughout the country.
TRAN distinguishes itself with a debt-free financial position. Notably, its EBITDA growth significantly outpaces its revenue growth, suggesting improved margins driven by the different rhythms of costs and revenue.
After reporting strong third-quarter results, TRAN remains in exceptional financial shape. The company is trailing the rest of the industry following a recent rally, making it a compelling alternative for investors seeking a more conservative approach.
What are the key takeaways for investors regarding aligning their strategies with individual goals and risk tolerance?
## Navigating Your Investments: A Look at Top Performing Assets
**INTRO**
Welcome back to the show! Today, we’re diving deep into the world of investments, exploring top performing assets that can help you maximize your gains amidst a volatile market. To guide us through these opportunities,
we have [Guest Name], a seasoned financial advisor with years of experience navigating the investment landscape. Welcome to the show, [Guest Name].
**[Guest Name]:** Thanks for having me!
**HOST:** So, as we enter the final months of 2024, many are looking ahead to their December bonuses and thinking about the best ways to invest that extra income. What are some of the top performing assets you’re recommending to your clients right now?
**[Guest Name]:** Absolutely. It’s essential to understand that the best investment strategy depends on individual
goals and risk tolerance.
But, for those seeking short-term gains, there are some interesting options
worth considering. For example, Lecap S30Y5 Treasury notes due
in May 2025 offer a potentially attractive short-term carry trade.
**HOST:** Can you explain what that means for our viewers who may not be familiar with the term?
**[Guest Name]:** It essentially means borrowing money at a low interest
rate and investing it in a higher yielding asset. In this case, the Lecap
S30Y5 presents a potential monthly interest rate of 2.9%, which
could exceed future inflation.
**HOST:** That sounds promising. What about other short-term options?
**[Guest Name]:** Another interesting choice is the CER T2X5 Bonus, which boasts
an excellent annual return to date of CER+4%. It’s a great option
for protecting capital from inflation while still achieving
handsome returns.
**HOST:** This is all very useful information for those who are
looking for quick returns. But what about long-
term investment strategies?
**[Guest Name]:** Of course! For the long haul,
Bono Global 2035 (GD35) stands out. It’s a sovereign bond
currently offering a USD yield of 11.5%, signaling a
positive outlook for economic normalization.
**HOST:** That sounds like a solid bet
for those with a longer timeline.
Are there any other noteworthy
opportunities out there?
**[Guest Name]:** Absolutely. For those looking to diversify
into U.S. dollars and earn passive income,
FCI IOL Dollar Savings Plus (IOLDOLD)
is a compelling option. It allows for simple, secure investing
in U.S dollars with projected annual returns
between 6% and 7%.
**HOST:** That’s a great point about diversifying.
We’re nearing the end of our
interview, but before we wrap
up, what’s your key takeaway
for viewers today?
**[Guest Name]:** The most important thing is to
align your investment
strategy with your individual
goals and risk tolerance.
Don’t hesitate to consult
with a financial advisor for personalized guidance.
**Outro**
Thank you, [Guest Name], for sharing your valuable insights
on navigating today’s investment
landscape. And remember, viewers, always do your own
research and seek professional advice before
making any investment decisions.
Stay tuned for more insightful financial advice
on our next episode!
