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As the presidential race in Argentina heats up, several risk-takers have invested in the country in the hopes that the new government will pull the second-largest economy in South America out of its financial woes.

Argentina has a history of economic instability due to inflation, fiscal deficits, and currency devaluation, due to which many investors found returns on investments challenging.

Now, some investors are daring to invest in the country, as they expect a more market-friendly government to take charge after the Oct. 22 voting. However, several are still waiting on the sidelines for the elections to end.

Christine Reed, who serves as a New York-based portfolio manager at global investment manager Ninety One, said that "two-thirds of the country is voting for pretty substantial fiscal consolidation, which, as a bond investor, we're obviously quite keen on," as per Reuters.

"There has been a lot of pain from being invested in Argentina over the past decade," Reed noted. "The people who are still around have most likely lost money at one point or another."

She explained that the investors' interest in Argentina peaked after presidential candidate Javier Milei from La Libertad Avanza party received a warm welcome in the open primary election held in August.

Milei, an economist and a member of Argentina's lower house of Congress, said he wanted to cut spending, ease stringent capital controls, and dollarize the economy of the country -- a positive move for the investors and the market.

The primary election in August had also seen Vice President Cristina Fernandez de Kirchner, who had clashed with investors, take a back seat. The former two-term president had previously established currency controls and presided over a sovereign debt default.

Founder of U.S.-based hedge fund Discovery Capital Management, Rob Citrone noted Argentina had the best opportunities in emerging markets.

"They're supporting someone who's very radical in his views in terms of a real free market and a smaller government," Citrone said of Milei. "These are very liberal ideas from an economic perspective, so I think it's a generational change."

Argentina's five presidential candidates -- Milei, Sergio Massa, Patricia Bullrich, Juan Schiaretti, and Myriam Bregman -- had faced off last week in a debate to discuss the economy, education and human rights.

During the debate, Milei slammed the economy minister Massa for Argentina's inflation, noting that in the next 50 years, the country will be the biggest slum in the world.

He pointed out that Argentina "started the 20th century as the richest country in the world and today we are in the middle of the table."

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