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
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