February 8: Sell Mexican Developers

By Derek On February 8, 2013 Under Uncategorized

We have a Latin theme in this week’s Emerging Markets Illustrated and begin with Cervantes – the original man of action. We then look at a few ETFs and examine just how much longer the Federal Reserve will be pushing up asset prices (Answer: as long as it takes to read “Don Quixote”). Despite Bill Gross’ concerns over the economy not responding to a “Credit Supernova,” we politely disagree and take a look at the “Cha-Cha” and why it is the favorite dance of central bankers everywhere. The penny drops in Canada as that country is the next to remove it from circulation. Is this a subtle sign of currency debasement and will the US Mint do the same? They are about to completely debase the nickel and hedge fund manager Kyle Bass is sitting on 100 metric tons of those at his dusty Texas ranch. What’s up with that? Mexican developers are cheap and could, like China, be ready for a rebound. If their business is improving then why is one of them investing in prisons? Lastly, times are booming as we see from an on the ground report penned by “Broken Arrow.”

Cheers.

Derek Hillen, CAIA

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