By Rodrigo Campos

NEW YORK (Reuters) -Argentina’s looming elections are the main risk to bullish market bets as a wave of U.S. financial support for President Javier Milei’s libertarian economic policies does not guarantee that voters will back his minority party, investors say.

Milei’s right-wing politics have endeared him to President Donald Trump’s administration, while his spending cuts and focus on inflation have given investors some of the best returns among emerging markets since he took power in December 2023.

But recent electoral setbacks for Milei’s party, fueled by corruption allegations reaching his inner circle, have hurt the leader’s popularity, a key indicator for investors, hammering the peso and government bonds.

His La Libertad Avanza party wants to increase its seats

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