CPI Financial

My recommendation last May to buy the Mexican peso at 14.50 for a 12.50 target proved unusually profitable since the Mexican peso was the best performing trade partner currency against the dollar. The macro credentials of Mexico are compelling. President elect Enrique Pena Nieto is committed to foreign investment in the state oil monopoly Pemex, his PRI will control the parliament, judicial/labour market reform could well help manufacturing in a state where 80% of exports are headed to the US. As construction and factory orders in the US rise, so do remittances from the 13 million Mexicans who live and work north of the Rio Grande in El Norte. Porifiio Diaz once lamented “Pobre Mexico”, so far from God, so close to the United States.