Mexico: Obama’s Grand Bargain Realized South of Border

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Mexico ( EWW , quote ) is getting done what the US cannot. Crony capitalism, partisan lobby groups, and entitlements gum up the US economy, yet Mexico can overcome seemingly deeper corruption. How?

[caption id="attachment_71888" align="alignright" width="300" caption="Mexico City is getting more accomplished than Washington, DC on the policy front"] Image courtesy Carolina López: http://flickr.com/photos/98553744@N00 [/caption]

Recently-elected President Enrique Peña Nieto has taken a populist approach to getting done what's best for the country, not what's best for groups in power or for those who control allocation strings.

Mexico remains a place that emerging market investors have wanted to own, even
defensively, and this will continue. The move in American Movil ( AMX , quote )
symbolizes the legacy model under attack.  However, AMX stock presents a buying opportunity at these levels. Depsite falling margins in Mexico, AMX has priced in the pain of market liberalization .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

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