This week Argentina allowed its peso to free float, leading to a steep plummet in the currency's value against the U.S. dollar. For Rich Ross of Evercore ISI, the recent currency tumble is another symptom of weakening global currencies, as well as a warning for domestic markets.
"I wouldn't really buy anything against the dollar," Ross said Thursday on CNBC's "Trading Nation." "Currencies around the world are eroding rapidly, they're being devalued. We saw the yuan devalue earlier this summer, which caused all sorts of repercussions."
Many emerging market currencies have taken a tumble this year, including the Chinese yuan, which declined against the U.S. dollar for the 10th straight day on Thursday. Other troubled currencies include the Brazilian real, Malaysian ringgit and the Turkish lira.
Meanwhile, the U.S. dollar has continued to strengthen, with the U.S. dollar index up almost 10 percent year to date.
"That's a reinforcing cycle, those weaker emerging and commodity currencies continue to put upward pressure on the dollar, downward pressure on commodities, and round and round we go," Ross said Thursday. "That weighs upon emerging markets, and ultimately filters back here as a headwind for the U.S."
Boris Schlossberg of BK Asset Management said markets may be overreacting to the Argentine government's decision to remove currency controls. Ultimately, this will be a positive for both Argentina's economy and investors looking to bet on the country's recovery.
"It is definitely a policy course that needed to be taken," Schlossberg said Thursday on "Trading Nation." "By allowing the peso to float, he is allowing the the country to re-balance itself. Yes, the peso is going to be devalued tremendously, but that's going to actually help their exporters and begin to heal their economy which has been ruptured over the past five, 10 years because they've really been shut out of the capital markets."
While the currency plunge may look like an attractive entry point for investors, Schlossberg said there could be more weakness ahead. However, he expects the Argentine peso's plight to improve dramatically in the next six months.
"Do not spend all your capital at this price point. It could come down a little bit more," he said. "But I do think it's much closer to the bottom at these levels, and probably represents an interesting emerging market bet six to 12 months forward on the regeneration of the Argentine economy."