Many times, in Argentina talking about money turns out to be a taboo. Surely you who are reading this column, have ever heard the phrase "it is bad to talk about money". This innocent saying generates more damage than the apparent. An illiterate society in financial matters is immersed in a vicious circle in which there is no investment and therefore companies are unable to obtain credit. This harms the productive structure of a country. That is why from these lines we want to give you an initial kick so that you are aware of your money and show you the essential reasons why it is convenient for you to invest and also, how accessible it is today.
1 - Investing generates positive effects in the country. A developed capital market and an educated society are necessary conditions for the development of a country. In Argentina, less than 5% of the population goes to the market, while in the bulk of European countries and the United States it comfortably exceeds 40%. This is a strong warning signal. Surely, many of our readers resort to the famous "mattress" to protect their savings. Others do it through the safe deposit box. These mechanisms, in addition to not generating returns on capital, do not generate positive effects on the economy either. The main engine of production is always credit and investment, and the genesis of these two things is savings. As long as it is in mattresses or boxes, it cannot generate value for the economy and it tends to stagnate.
2 - Better returns. Now we are going to talk with those who did go one step further and ventured to invest in fixed terms. This instrument allows you to obtain a guaranteed rate in pesos by placing your money in the bank for 30 days. Today I want to invite you to take another step so that you can learn about other instruments such as stock market bonds, inflation-adjusted bonds or letters where not only the return or interest rate will be considerably higher than in the fixed term, but also, you will be able to dispose of your money every day, not being subject to a 30-day freeze.
v 3 - There are no minimums. We tend to be used to investments being for those with wealth. Typically, the exchange was attended by people who had the desire to commit large sums of money. That, fortunately, changed. Today all Argentines can invest ridiculously low amounts like $100, $500 or 1000 pesos from their cell phones. Of course, the gains will not be large, but they will have achieved something much more important, losing their fear.
4 - Associate with your favorite companies. The Stock Market allows many of us to fulfill a dream. We can, with little money, become partners of the most successful companies in our country and in the world. The company that makes your cell phone, your desktop computer, and your favorite beverage goes public and uses it to finance its activities so it can grow . Through the purchase of shares, we can associate and obtain dividends from the quarterly results of these companies. As a final detail of this point, but not less important, I would like to emphasize that if we compare investment in companies against other types of investments such as gold, real estate or bank interest rates, shares take the biggest prize.
5 - Tax benefits. Returning to the initial argument, investment in the capital market framework produces positive results and externalities not only for people but also for our country. And that, the state rewards, exempting us from paying financial income, VAT and other taxes. When investing, for example, in real estate developments, one must pay VAT, profits and all kinds of charges both at the time of purchase and sale of any kind of product, good or service that has been involved. This, in bonds or other alternatives that the market throws, does not happen, providing us with an additional benefit.
We have navigated the most important reasons and reasons why you should invest in the stock market. I want to add a final thought. In this historical circumstance, the companies and titles of our country are profoundly undervalued in terms of their balance sheets and also of the general position of our country taking into account reserves and foreign trade positions. It is an opportunity that arises every many years and although, being something "new" for many, they must be very prudent and cautious, they must also afford to experience an investment in the stock market.
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