Argentina's stock market is way overdue for a correction, it has skyrocketed almost 100% this year. This is the largest growth of any market in the world. The correction will come when Argentina's bitter battle with the so-called holdout bondholders, from its 2001 default, is settled by the courts. They payments due will reduce the country's GDP.
The stock market varies to much for any one stock market to stay hot for any length of time. Stock markets have proven in the past that stock goes up and down at any given time and cause governments to plunder in to a depression and recession that can hurt the economy.
Based on news reports, Argentina's stock market investors are placing their faith in the economy improving -- not on the present state of the economy. Wishful thinking at best. The state of affairs in Argentina shows evidence of an economy on the decline. Investors choosing to bet against the tide will be drowned at sea. However, investors are a smart bunch. When they see their investments in Argentina's stock market as what it is -- a bad bet -- they will jump ship! The once hot market will turn cold as ice.
Argentina's stock market is up 100% this year, which is the highest of any country in the world. Much of the money is coming from Latin American investors who feel comfortable spending money at home. Unfortunately, the government is still suffering from its 2001 default. Inflation is also out of control there. Put simply, Argentina's stock market is only up due to the optimism of native businessmen. The larger troubles will come home to roost.