2024-02-10 02:22:01 ET
Summary
- The article evaluates the attractiveness of Mexican equities in the current market climate.
- Escalating US-China tensions are a tailwind for more US-Mexican trade and will benefit many holdings in Mexican-theme ETFs, such as EWW and FLMX.
- The Mexican pesos has been appreciating against the dollar, which is a trade headwind. But it has helped support domestic consumer spending.
Main Thesis & Background
The purpose of this article is to evaluate the current opportunity in Mexican equities. This is a broad, macro-review, but I will highlight a couple of ways to play this space if one ends up being interested. This is my first direct review of Mexican equities as a whole, but I did highlight this idea as an investment theme that I like in 2024 in a macro- review earlier this month. However, the "Mexico play" was part of a wider article and I wanted to take time to dig into this particular theme more closely.
To understand why, consider Mexican equities have been a strong performers over the past year and that momentum has not gone unnoticed. Funds that track Mexican shares, such as the iShares MSCI Mexico ETF ( EWW ) are up handsomely during this bull market:
...
Read the full article on Seeking Alpha
For further details see:
Mexican Equities Benefit From US Tensions With China