Country Primers: Mexico
The framework for trading in Mexican Markets
Intro To Country Primers:
I laid out the framework for WHY I am writing a series of country primers in the Japan Primer. There has already been a ton of positive feedback so we won’t slow down. Developing this TYPE of knowledge about a country is comparable to building a factory. Once you set the foundations for operations, you simply need to run the factory to make money. Knowledge of countries throughout the world functions in the exact same way.
Country Primers: Japan
Intro To Country Primers: Global macro trading is made up of generalists who morph across all countries in the world to find asymmetrical returns. To identify asymmetrical returns, you need an exceptional knowledge of every country, sector, and asset in the world.
All of the educational articles on global macro are here:
Research Synthesis / Direction Of Capital Flows Substack
Hello everyone, There has never been a time in history when understanding the world from a global perspective and interpreting it accurately paid such a high premium. Since the very beginning of this Substack, I have talked about the nature of the time we live in and how to act intentionally in it.
And all the details about where we are going with the Substack are in the “About” section.
Today, we are going to cover a country that presents one of the most significant investment opportunities for the next decade. The country as a whole has a lot of upside but there are specific asymmetrical points in the economy that are essential to know from a global perspective.
Remember how everyone was talking about deglobalization and supply chain issues last year? While that was happening, the Mexican stock market was outperforming the S&P500. This year, the Mexican stock market has made ATH while the S&P500 remains below ATHs.
On top of that, the Peso has been one of the best-performing currencies against the dollar over the past 2 years, even amidst the FED’s tightening cycle:
Main idea: Significant asymmetrical opportunities exist in Mexican financial markets over the next year and the coming decade. The goal of this primer is to set an exceptional foundation of knowledge for identifying these opportunities.
Overview: Here is the structure for this primer
Country Overview
Geography and Demographics
Economic Data: GDP, GNI, BoP, and Balance Sheets
Financial Markets: Stocks, Bonds, and the Peso.
History of growth, inflation, and liquidity on a structural and cyclical basis
Current growth, inflation, and liquidity regime and its connection to each financial asset
Additional resources for research and trading in Mexican markets
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