Mexico, A Positive Standout
from The Market Hosted by Etherfuse
The US, UK, Europe, and other countries are fretting about inflation, and investors are concerned. Those that are concerned about inflation may want to take a look at Mexico, a standout in global markets. Mexican inflation has gone down three times in the last three months. At 4.21% as of December, inflation is close to the Bank of Mexico’s target range of 2-4%. The Bank of Mexico meets February 6, 2025 and rate cuts could be on the table. If Mexico were a student and this was a parent teacher conference, it would be excellent, head of the class. Investor hesitancy regarding Mexico seems to be centered on two ideas; potential US tariffs and the value of the Mexican peso. Based on recent murmurs out of Washington, tariffs may not be as bad as expected. Regarding the peso, after a 20 plus percent fall versus the US dollar in 2024, the peso seems to be stabilizing. On the day of the recent US CPI release, the peso strengthened a little. Year to date it is a little up. If more US Interest rates cuts are coming, the peso could remain stable. A combination of a stable currency and 8 plus percent yields on CETES seems like a good proposition. A proposition that would take any This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit etherfuse.substack.com
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