2024-06-06 12:24:21 ET
Summary
- The iShares MSCI Mexico ETF is in a tizzy amid the Mexican election results.
- Many believe Mexico's new administration will restrict the private markets. However, policy implementation and rhetoric are often different phenomena.
- Mexico's salient economic data is robust and scope exists for higher debt levels to stimulate GDP growth. This could benefit EWW ETF.
- EWW ETF's sector composition is well-diversified. However, we are concerned by its risk-return measures.
- We think EWW ETF's valuation multiples and dividend prospects are intact. Nevertheless, we maintain our hold rating on the basis of uncertain real economic factors.
Today's article focuses on the iShares MSCI Mexico ETF ( EWW ) , an asset of interest to many market participants, given the heightened systematic influencing variables.
Which variables am I referring to? Firstly, Mexico recently held a national election, in which left-wing candidate Claudia Sheinbaum decisively won. As discussed within the article, anecdotal evidence suggests that investors believe a significant policy shift is en route, therefore providing us with the opportunity to cover EWW ETF. ...
Read the full article on Seeking Alpha
For further details see:
EWW: A Potential Trajectory After Mexican Elections (Technical Analysis)