mexico is the new china
"mexico is the new china"
in the news mexico is the new china? What this all about..... See below.
There are some analysts that say they are bullish on emerging markets, because they see alot of flows coming back to the market in those areas. Meaning some of the smart money is placing their chips there. However one of our analysts are saying is that the investors in 2017 are underestimating inflation.
We think there is a bigger divergence in the market right now between official inflation as opposed to what is actually happening out there in the real world especially in the emerging markets. overall inflation seems to be drifting higher, and it can have enormous consequences for all emerging markets, the way we see it.
I can see that the Mexican stock market is under-loved, but still have relative strength and when you look at their stock market is actually broken out of a longer downtrend.
Laugh if you will, but let us explain. Its 30% cheaper, but its quality control is in the American Standard. There have been other countries rely on Vietnam and Cambodia, and in the last 24 months we have seen manufacture leave china very rapidly and move to these countries in droves.
Over the recent 12 months, we believe the mexico-Texas Midwest quarter, right now is the number one destination for capital flows for global markets right now.
Even with the Donald Trump planning to build an almighty mexico wall, and even with other problems surrounding mexico with trump as president, why would we tell people about this?
The answer is pretty simple. With wages so cheap, and quality control so high, and their willingness to allow foreign investment, is much increased compared to the past. It makes for a very nice recipe we think in the coming 24 to 36 months, as we see it. This is one place to keep your eye on.
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