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
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