RE: Learn about the Caracas Stock Exchange (BVC)/Tradfi Initiative[Eng-Spn]
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Venezuela has the same problems it had before Maduro's arrest. Trump only partially solved the Maduro problem because his political party remains in power.
Until the political situation normalizes with a change of government that has the prospect of sustaining that change, and until the economy normalizes, I wouldn't invest a single cent in Venezuela.
I wouldn't buy a share of a Venezuelan company for one simple reason: they live in a kind of alternate reality.
In the process of normalizing the economy, the future government (no one has a crystal ball to know who will govern Venezuela when the political situation normalizes) will have to make economic and financial decisions. Anything can happen; a company that is solid today could end up bankrupt with the changes, and a company that is in dire straits today could be a huge success with the future changes.
Today, the Caracas Stock Exchange is a kind of casino; there's no investing, just gambling.
Very true, your words reflect an undeniable certainty, full of objectivity and devoid of sentimentality; it's the opinion of many. We're one big casino. And that's no way to make a real investment.
Thank you for your analysis; undoubtedly painful but real.
This is common in Latin America. Argentina experienced the same situation when it abandoned convertibility in January 2002. The new president, in his inaugural address, promised to respect dollar deposits, but within days he abandoned convertibility, devalued the official exchange rate, and offered government bonds in exchange for dollar deposits.
It's normal for them to take drastic measures to get out of a major crisis.
I understand, we're still uncertain, hoping things will improve. But there's a difference between the donkey and the one driving it. 😵💫
Sharpy comment here. Very accurate observation, and I kinda think the same on this.