Investing in Mexico

By Jason Lavender, Intercam Financial Services

If you live in Mexico you probably already know the great advantages in Mexico’s economic standing and outlook. The Mexican Government has a budget surplus instead of a deficit. Also, the government has about 200 billion dollars in reserves as opposed to the U.S. which has over 16 trillion in debt. It used to be said that if the U.S. sneezed, Mexico caught a cold. Nowadays the Mexican stock market index (Bolsa) is in record territory while the U.S. is sneezing and coughing with its Fiscal Cliff. Mexican Government Bonds CETES pay close to a 4% interest as opposed to U.S. Treasury Bills which pay less than 0.2%. Not only do you get a better interest rate in Mexican Pesos, but you also can benefit of currency appreciation if you purchase pesos at a good time. Many financial analysts are predicting that the peso will go below 12.50 to the dollar by midsummer. So overall investing in Mexican financial products is known to be a safe and profitable bet at this time.

If you live in Mexico, it is a good idea to exchange your money for six months or one year’s expenses when you find a good exchange rate. Given that you will spend that money in pesos you avoid the exchange risk of not having to exchange when the rate is not good. Added that you can earn good interest while the pesos are sitting in a daily investment account, means that money is generating a better return than if it were sitting in dollars. If you are not comfortable being all in pesos, we have Bank Certificates of Deposit (CDs) that pay 2% in dollars which are guaranteed by the Mexican government and are a much better return than you could get for AAA investments in Dollars in the U.S. At Intercam we have many investment products to fit your needs, with different degrees of liquidity horizons and tailored to different risk/reward tolerance preferences. We have been in the financial services sector for over 27 years and we have the experienced and certified personnel to attend to you in most professional and ethical manner. We handle all financial services, from FX to full brokerage and banking as well as insurance, escrows and restricted zone property bank trusts (Fideicomisos). We have 72 branches nationwide and are in every major city in Mexico. Please review our attached brochure or visit us on our local Puerto Vallarta Web Site and blog, www.intercamfinancialservices.com