Morgan Stanley Flip-Flop Shows Speed of Crisis Facing Milei (1)

It took less than a week — and a landslide defeat for free-market reformer Javier Milei — to make Morgan Stanley abandon its bullish call on Argentina.

The Wall Street bank, alongside rivals including Bank of America Corp. and JPMorgan Chase & Co., advised clients to buy the government’s bonds ahead of a key local election in Buenos Aires this weekend, betting that the president’s recent political stumbles had already been priced in during selloffs that swept through the nation’s financial markets the past few months.

Javier Milei, Argentina’s president, left, speaks during an election night rally for the Libertad Avanza party in La Plata, Buenos Aires province, on Sept. 7, 2025.

Photographer: Anita Pouchard Serra/Bloomberg

On Sunday evening, word came that Milei’s party had been handed a ...