Posted 1/27/2024, 8:17:00 AM
Major Companies Appear to Split Stocks, But It's Just an Argentina Quirk Due to Extreme Inflation
- Several major companies like Netflix, IBM, Apple, etc. appeared to split their stocks simultaneously this week, but it was actually just their listings on the Argentinian stock exchange
- This was done because of Argentina's extreme hyperinflation, which causes prices and exchange rates to fluctuate wildly
- The Argentinian peso has lost tremendous value recently, making other assets like stocks, gold, Bitcoin, etc. attractive to locals as stores of value
- Even the high US inflation seems small compared to Argentina's over 200% price increase year-over-year
- The situation in Argentina underscores the importance of diversifying investments across assets and geographies as a hedge against economic crises