Shares of Argentinian financial stocks continued to charge higher on Monday. After initially surging last week on the news that libertarian candidate Javier Milei had on Nov. 19 been elected president of Argentina, shares of Argentine banks Grupo Financiero Galicia (GGAL 4.10%), Grupo Supervielle (SUPV 4.87%), and Banco Macro (BMA 4.69%) all gave back some ground before the Thanksgiving holiday in the U.S.

No sooner was the leftover turkey put in the fridge, however, than these banks all resumed their movement higher on Friday. And so far on Monday, all three are rising again. As of 2:22 p.m. ET, they were up 13.5%, 7.8%, and 8.5%, respectively.

Why bank investors love President-elect Milei

So what's up with that? I mean, since Milei's election was announced, shares of Grupo Financiero Galicia and Banco Macro are both up by close to 40%, and Grupo Supervielle -- the smallest of the bunch, with a market capitalization well below $800 million -- is up by around 60%.

Does the election of one politician really justify such massive run-ups?

Maybe, maybe not. Milei has promised to, among other things, "dollarize" the Argentine economy (i.e., make the U.S. dollar the official currency of Argentina, too), privatize companies owned by the government, and close down Argentina's central bank entirely. His stated aim in all of these planned moves is to tame his country's crippling national inflation rate, which hit 143% last month, and help to revive its economy, which is expected to contract through the end of this year.

In a weekend column discussing President-elect Milei's plans, though, the BBC pointed out that some of the policies he campaigned on may be unrealistic. Dollarizing Argentina's economy, for example, wouldn't simply require a vote in favor by its congress. It would actually require that Argentina amend its constitution.

Milei's plans would also essentially outsource Argentine fiscal policy to the U.S. Federal Reserve, which may raise or lower dollar-debt interest rates in ways Argentina wouldn't necessarily find beneficial. Should the Fed decide it's necessary to weaken the exchange rate of the dollar, for example (by lowering interest rates), this might make imports more expensive in the U.S., and in Argentina as well.

Bold plans, expensive stocks

That being said, just because Milei's ideas might not be good ideas doesn't mean he won't try to implement them. But investors should take note that even Milei admits he will probably need a couple of years to bring Argentina's inflation rates down, so any changes -- good or bad -- may be some time in coming. Whether you believe that high inflation is actually good news for banks (for example, because it allows them to charge higher interest rates and expand their net interest margins), or believe it would be better to bring inflation down (because inflation erodes the value of deposits, for example, and increases economic uncertainty in general), there's no guarantee either of these things will happen. Or happen soon.

In the meantime, if the choice is whether to buy Grupo Supervielle stock at 15 times earnings, Grupo Financiero Galicia at more than 16, or Banco Macro stock at 33 times, my advice would be to ... do none of these things. Not when you have the opportunity to own bigger, better, better-known bank stocks like Bank of America (NYSE: BAC) at a much cheaper 8 times earnings, or JPMorgan Chase (NYSE: JPM) at 9 times earnings.

Sometimes, it's best to play thing safe. And sometimes, the right choice is the obvious choice.