Join Tim Seymour on CNBC at 10:20 a.m. today, as Tim discusses a mixed bag for commodities which are tied to emerging markets fortunes, housing and construction data for the U.S. and China, and how soaring grain prices may result in export quotas to further limit supply.
The IPC index of the Mexican stock exchange, the Bolsa Mexicana de Valores (BMV), is the primary stock index for the country’s only bourse. You might think of it as Mexico’s S&P 500.
As first quarter data starts to come in on corporate profits and economies, investors may want to reevaluate their positions within emerging markets.
In the value school of finance propounded by Benjamin Graham and Warren Buffett, investors seek out companies that are selling for less than the value of their assets.
Mexico’s inflation subsiding to just 3.7% and a more stable banking environment will allow the country’s largest mortgage provider to offer fixed-rate loans for the first time in June. The state-controlled Infonavit will offer 30-year mortgages to homeowners and plans to issue mortgage-backed securities (MBS) in pesos next year.
Recent economic data out of Mexico left me thinking that recent outperformance may be short-lived. I still think that Mexican equities will underperform other LatAm opportunities this year, notably Brazil and the Andean region, but I want to qualify the outlook with a discussion on risk.