Buenos Aires, Argentina – The influential investment bank Morgan Stanley has taken a long-term position on Argentine bonds and stocks, anticipating a favorable outcome for the Javier Milei government in the upcoming legislative elections. According to the bank’s analysis, a victory for the current administration would be a positive signal for the markets, solidifying confidence and propelling the advancement of key economic reforms.

Morgan Stanley’s strategic bet is directly tied to the government’s performance in the upcoming elections. The bank views these polls—the provincial elections on September 7th in the Province of Buenos Aires and the national elections on October 26th—as crucial milestones that, if they result in a victory for La Libertad Avanza, will trigger a significant rally in financial markets.

In its report, the investment bank projects a scenario where Argentine dollar bonds could trade with a yield below 10% by year-end. This would represent a considerable increase in their value and could potentially restore Argentina’s access to capital markets. Furthermore, Morgan Stanley sees “attractive potential” in specific Argentine company stocks, recommending investors hold positions in companies such as Vista, Banco Galicia, and Loma Negra.

Despite its optimistic outlook, the bank advises investors to maintain “moderate long positions,” citing the risk that an electoral setback could lead to a reversal of the reforms. Nevertheless, Morgan Stanley’s bet demonstrates a growing confidence among international financial players in Argentina’s economic direction and the Milei government’s capacity to successfully implement its market-oriented agenda.