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Mexico vs EM Overall

By: Emerging Money
Posted: 1/16/2014 7:39:00 PM
Referenced Stocks:

On Tuesday I will do a piece on CNBC Street Signs (2pm) on investing in Mexico as we cover overall investing in the "MINTs" (Mexico, Indonesia Nigeria, Turkey).  Mexico is your safest bet. Image Courtesy Flickr User Schlaeger: http://www.flickr.com/people/schlaeger/

Here is a quick graph that gives an illustration of the outperformance of Mexico versus the entire EM asset class on a 5yr. basis.  Correlation with SPY ( SPY , quote ) vs. EEM ( EEM , quote ) are high but not as extreme.

In other words, an investment in the Mexican ETF ( EWW , quote ) vs. the emerging markets MSCI Index (EEM) has significantly outperformed, despite Mexico's (like many other EMs) fx weakness as a big part of the underperformance story.

Nonetheless, Mexico remains a standout within EMs because of its US linkage (as I refer to it). Tune in on Tuesday to learn more and stocks to play. sg2014011643352