Mexico vs EM Overall
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.
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.