CEPU

Global Market Overview: November 2025 saw a significant relief rally in global markets following the resolution of a historic U.S. government shutdown, with strong performances from various international stocks, particularly in Argentina and Hong Kong.

U.S. Economic Conditions: The prolonged government shutdown negatively impacted the U.S. economy, leading to increased job dismissals and deteriorating consumer sentiment, although the market rebounded as political resolution emerged.

Regional Market Performance: European markets showed cautious optimism with gains across major indices, while Asian markets, particularly in China and Hong Kong, displayed signs of stabilization and recovery, especially in the property sector.

Investment Strategy and Outlook: The Perfect Stock portfolio, adhering to value investing principles, focuses on companies trading at significant discounts to intrinsic value, with a diversified global approach that positions it well for future opportunities amid ongoing economic uncertainties.

Milei's Election Impact: Javier Milei's victory in Argentina's midterm elections has led to a significant surge in the country's stocks and bonds, reflecting increased investor confidence and a potential reduction in political risk.

Legislative Power and Reforms: With his coalition securing 41% of the vote, Milei is positioned to implement extensive libertarian reforms, including government spending cuts and tax system overhauls, bolstered by a substantial increase in congressional representation.

U.S. Support and Economic Outlook: The U.S. Treasury Secretary praised Milei's mandate as a success of U.S. policy in Latin America, highlighting the potential for increased private sector investment and economic freedom in Argentina.

Stock Market Reactions: Following the election results, several Argentine stocks listed in the U.S. experienced dramatic gains, with some rising over 34%, indicating strong market enthusiasm for Milei's economic agenda.