As a general rule I’m not a big fan of buying banks in South America, but in the case of Banco Macro I’m willing to make an exception since our Rapid Profits Matrix likes it so much. Also, I am a big fan of Mauricio Macri, the current President of Argentina who was elected last year to implement his pro-business agenda that is heavily dependent on increasing foreign trade.

That’s good news for large banks like this one, which can provide the loans, letters of credit and other financial instruments necessary to facilitate those transactions. It’s also good news for the Argentinian economy in general, which in turn should drive up retail demand for the bank’s traditional deposit accounts.

However, we’re keeping this trade on a short leash since there are so many variables outside the bank’s control that could have a big influence on its share price. Our current recommendation expires at the end of next week, at which time we will either close out this position or roll it for another month, depending on how it scores at that time according to our Rapid Profits Matrix. We’ll send out an Alert on November 11^th either way informing you of our decision.