Bobby, that URL doesn't work (no space after), but I'll bet it was the one on Friday regarding Alfa (alf.a-mx), which is a conglomerate quite heavy to petrochemicals and steel (which steel finds much use in the MX oil patch). I think you'll find that the fortunes of Alfa and M‚xico in general rise and fall with the price of oil. Oil, tourism, and drug import/export - that's the big 3 engines of foreign currency earnings, and statistics on the latter two are not widely available nor accurate.
Here's a real mexicano firm, Maseca - the name comes from masa, the corn flour used to make tortillas, we buy it in Canada in 50-lb sacks; biz.yahoo.com
.... NOT a plug for the stock, there is a history of scandal here ...
Good point about "musical currencies" - it was Asia rallying last night that raised North and Latin America today, they're all inter-related. Watch the reaction in the real of Brasil to the Asian currencies, it's almost lockstep, though lower beta. M‚xico now has a currency board (foreign currency reserves), and it is very close to trade-weighted. Seems like the next best thing to a gold/silver standard.
Question - if all the currencies (including the US$) fall in the end by the same percentage, do they really fall? If so, against what? - right, against goods and services and commodities, and against gold.
........... cheers .................... marcos |
