The key to investing in Latin America is always keeping proportion of risk/reward.
I can not emphasize enough the "Devaluation" factor.
Many times the Mexican Stock Index and specific stocks as well, go up very impressively.... only to have the gains disappear because of a devaluation.
In my eyes, the best is as I said earlier, arrive after the tornado has passed, wait a while, then select those companies whose finances have not been strapped due to the new valuation of their debt, (which many times is in dollars). Indeed, find out if their debt, (or part of it), is in US Dollars, and where their income primarily comes from... Pesos or USD.
Yes the infrastructure projects are very impressive... on surface. However, many times, they are done based on purely political reasons, favors, or prizes, NOT because there is a logical and/or economical reason.... I know, such happens everywhere... but in Mexico/Latin America, this is sometimes exaggerated to no end....
FYI:
Message 9830080
You will enjoy this one:
Message 9778982 |
