Argentina support fuels peso rally and emerging markets buzz

Market Dynamics & Geopolitics - The Argentinian peso surged on the possibility of a US government backstop for Argentinian assets, which is significant for emerging market specialists [1] - A similar headline in emerging markets 25 years ago would have resulted in a 40% increase in Argentina [1] - The US government's support for Argentina may be related to Brazil's strategic importance in Latin America [3] - Argentina's strategic importance to the US in Latin America is less than Brazil's [3] - There are political tensions between Argentina and Brazil's former leader, Bolsonaro [4] Currency & Lending - Buying back currency in the open market cost Argentina $1 billion last week, which is not necessarily a great move [2] - Lending should be against a dollar dynamic that would repay that dollar dynamic, not against the Argentinian currency [2] Investment Opportunities & Risks - Gold's performance may be linked to the headline regarding Argentina [5] - Mercado Libre (MELI) is suggested as a way to be long, noting it's approximately 25-26% and came off from 90 in May [5] - ARGT is mentioned as a way to play the situation [5] Trade & Economic Impact - The US exports approximately $9-10 billion worth of goods to Argentina and imports around $7-8 billion worth [6] - Problems in Argentina are unlikely to have a significant impact on the US economy [6]