Back to “Old School” Emerging Markets: Mexico (Wellington Management)
When Jamie Rice, Equity Portfolio Manager in Wellington’s Boston office thinks of “old school” emerging markets (EMs), he thinks of Mexico:
What started out as an exercise to determine if Mexico could be a “Biden trade” soon turned into his belief that some Mexican equities could perform well going forward regardless of the election outcome.
Mexico is not a “COVID reopening” trade, in my view, because President Andrés Manuel López Obrador (AMLO) neither locked the country down aggressively amid the pandemic, nor took any bold steps to stimulate the market. In fact, by not pursuing deficit spending in response to COVID, Mexico’s balance sheet may hold up better than most EMs’ heading into 2021.
More to the point for investors, some Mexican companies appear to be pivoting toward several quarters of better-than-expected earnings growth, with their stocks available at potentially compelling discounts. READ MORE
- Mexico and Colombia Join ‘Fragile Five’ Emerging Markets (FT)
- The Mexican Peso as a US Election Barometer (Bloomberg)
- As Ties With China Unravel, US Companies Head to Mexico (NYT)
- Rich Mexicans are Fleeing to Miami and Funneling Money Overseas (Financial Post)
- Mexico Falls Six More Places in the Global Competitiveness Report
- Mexico Could Still be a Winner if NAFTA is Retooled (CNBC)
- BMW’s $1 Billion Bet on Mexico (Reuters)
- Mexico’s Trumpian Populist Pushes “Mexican People First” (Politico)
- Surviving the Pharma Drug Price Wars in Emerging Markets (PharmExec.com)
- Mexico Analysis: Tequila Surprise? (LGIM)