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    Long Mexican Equities Via EWW: Click To Edit Master Subtitle Style

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    The document summarizes the outlook for long positions in Mexican equities via the iShares MSCI Mexico Investable Market Index Fund (EWW). It cites strong technical indicators, Mexico's close ties and sensitivity to the U.S. economy, and potential reforms in Mexico's labor and energy markets as reasons for outperformance in 2012. However, it also notes risks such as a slowdown in the U.S. economy or European crisis that could trigger a flight to safety and dollar rally.

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    Long Mexican Equities Via EWW: Click To Edit Master Subtitle Style

    Uploaded by

    scriiib
    14 views9 pages
    The document summarizes the outlook for long positions in Mexican equities via the iShares MSCI Mexico Investable Market Index Fund (EWW). It cites strong technical indicators, Mexico's close ties and sensitivity to the U.S. economy, and potential reforms in Mexico's labor and energy markets as reasons for outperformance in 2012. However, it also notes risks such as a slowdown in the U.S. economy or European crisis that could trigger a flight to safety and dollar rally.

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    Long EWW

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    The document summarizes the outlook for long positions in Mexican equities via the iShares MSCI Mexico Investable Market Index Fund (EWW). It cites strong technical indicators, Mexico's close ties and sensitivity to the U.S. economy, and potential reforms in Mexico's labor and energy markets as reasons for outperformance in 2012. However, it also notes risks such as a slowdown in the U.S. economy or European crisis that could trigger a flight to safety and dollar rally.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    14 views9 pages

    Long Mexican Equities Via EWW: Click To Edit Master Subtitle Style

    Uploaded by

    scriiib
    The document summarizes the outlook for long positions in Mexican equities via the iShares MSCI Mexico Investable Market Index Fund (EWW). It cites strong technical indicators, Mexico's close ties and sensitivity to the U.S. economy, and potential reforms in Mexico's labor and energy markets as reasons for outperformance in 2012. However, it also notes risks such as a slowdown in the U.S. economy or European crisis that could trigger a flight to safety and dollar rally.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 9

    Long Mexican Equities via EWW

    April to edit Click 8, 2012Master subtitle style

    4/8/12 Source of all charts: Bloomberg

    Key Points

    Strong technicals, relative performance Close ties to US economy, increasingly competitive

    http://blogs.ft.com/beyondbrics/2012/04/04/mexico-peso-riding-on-theuss-coat-tails/#axzz1rUCEHw6R

    Talk of reforms in labor, energy markets

    http:// www.ft.com/intl/cms/s/0/b4db59ca-78d1-11e1-9f0 http://

    Drug reform

    4/8/12

    Risks

    US economic slowdown European or other economic crisis causes flight to safety, dollar rally Uncertainty of upcoming presidential election Market valuation 15.1x est. 2012 earnings higher than peers
    4/8/12

    Outperformance in 2012

    4/8/12

    Global Comparison

    MXN and MexBol both up >5% in 2012

    4/8/12

    Closely tracks MEXBOL priced in USD In other words, long both MEXBOL and MXN Strong tailwinds behind MXN with Mexicos foreign trade fundamentals and long term appreciation of EM currencies as world looks for new stores of value
    4/8/12

    iShares MSCI Mexico Investable Market Index Fund (EWW)

    Technicals

    Recently broke out of two month, 4% wide rectangle Bounced on retest of rectangles upper bound (61.36) Approaching 52 wk high Look for rally early next week off uppermost mini-trend line Risk to 61.25 on trade, inside rectangle 4/8/12

    Technicals

    4/8/12

    Sensitivity to oil prices

    Higher oil prices soften US economy, Mexicos main export market Partially offset by Mexicos large production of oil (2.6m barrels per day)

    4/8/12

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