It's a great time to be an investor in Argentina.
Stocks are surging in Argentina because investors are optimistic that the upcoming presidential election in October will bring a more market-friendly government.
But don't think the stock success in Buenos Aires is a sign of a healthy economy. While its economy has shown new signs of life recently, Argentina is technically still in default on its debt. It has had years of double-digit inflation and its currency has lost much of its value.
Argentina has been shut out from foreign investment cash because its government, led by Cristina Fernandez de Kirchner, refuses to pay a group of American hedge funds who own their debt.
There are some signs the economy is moving in the right direction. Consumer confidence has been rising, and the government actually sold some new bonds this spring -- a sign of investors' confidence in the future.
Investors hope the new president will resolve the hedge fund problem and reopen Argentina to foreign investment.
