Market Opportunities 2013
By Mauricio Gonzalez Carpizo, Actinver
Mexico is currently in the best economic shape it has been in its independent history. Historically low inflation and interest rates, constant and sustained economic growth, low Debt to GDP ratio and the highest international currency reserves in history are propelling Mexico to the global economic center stage.
This economic development the country is going through creates investment opportunities in domestic market that can be exploited through Actinver’s services.
- The weakening US dollar. Since the end of the “Great recession” in 2009, the Federal Reserve Bank (FED) has done continuous round of Quantitative easing. This policy is designed to inject money into the economic system to avoid creating a credit crunch such like the one that lead to the Great Depression in the 1930s. This unprecedented printing of money is putting downward pressure on the US dollar against other currencies creating an opportunity to invest in emerging currencies pegged to the dollar i.e. Mexican pesos.
Through our money market and capital market funds, investors can benefit from higher interest rates the MXN offers and from the potential weakening of the dollar creating a compounded return from interest and exchange profit.
- The newly elected president of Mexico Enrique Peña Nieto continues to press for much needed legal reforms in the country. The labor and education reform have already been passed, and most political analysts agree that energy and fiscal reforms will be passed during the next two years. The mentioned reforms will have a beneficial economic impact on the country which will continue to send the Mexican stock market (IPC) to higher levels. The IPC has already risen 2% this year.
Now is an excellent time to invest in the Mexican market through Actinver’s stock market funds which are managed according to specific investment strategies always seeking the perfect mix of risk and return.
- Mexican companies are expected to perform several IPOs during 2013. The REIT Fibra Uno is doing a second public offering for 1,500 million dollars to expand their real-estate portfolio. The company has had an excellent performance with a 12 month return of 60.59%. We strongly recommend buying shares of this company if you are willing to participate in the Mexican real estate market without having liquidity issues and all the legal inconveniences of purchasing real estate. Fibra Uno currently has presence in 29 estates and holds in its portfolio more than 310 properties equivalent to almost 3 million square meters. http://en.fibra-uno.com/ Actinver is proudly a co-bookrunner at this offering. We recommend including this stock in your portfolio considering the high dividend and potential for growth.
Don’t let these opportunities pass, contact us today and let our experts advise you on the best way to maximize your risk-return potential.
