Currecny devaluation is a blessing to a nation's economy and stock market

In 2001 Argentina's econmy was down the toilet and unemploment was about 25%. Moreover, the nation's deepening recession was rapidly morphing into a Depressionary Spiral.

Consequently in the nick of time, Argentina's Central Bank saw the wisdom of a sharp devaluation of its peso vs the US$ in mid-2001.

From that point the spectacular rest is heroic financial history for Argentina.

Since 2001 Argentina's stock index (MERVAL) soared NO LESS THAN 1,145% during the next 10 years.

PUTTING ARGENTINA'S PHENOMENAL RESULTS INTO PERSPECTIVE

The chart of shows relative performances of MERVAL vs the US Dow Stock Index and value of the US dollar Index (from 2001 to Present):

MERVAL de Argentina…………………………+1,144%
US Dow Stocks Index………………………………+30%
US Dollar………………………………………………....-33%

http://stockcharts.com/h-sc/ui?s=$MERV&p=M&yr=10&mn=0&dy=0&id=p09929623421&lis tNum=-2&a=246766600

VIVA Argentina...Viva la Devaluaciσn de 2001.

Ohhhh BTW, QE3 in the USA will have the beneficial side effect of devaluating the US$, which will inevitably fuel US stocks to new all-time record highs.

BANK ON IT.