After a rough 2009, Mexico’s economic fundamentals look set for a breather over the next couple of months, as exports, manufacturing and unemployment levels continue to benefit from unprecedented fiscal stimulus north of the border. If the US Federal Reserve opts to keep the monetary floodgates open for a while longer, this could translate into [Read more...]

Fiscal deficit management and debt sustainability are two vital economic themes right now, given that governments across the world have been boosting public spending to reinvigorate their economies. In this respect, two charts immediately grab my attention. These charts appeared in Business Monitor Online earlier today, and in BMI’s weekly Emerging Markets Monitor magazine.

The [Read more...]

Risk Watchdog and his colleagues at Business Monitor International (BMI) have grown very bullish Latin American currencies. Three views in particular stand out and form part of the BMI Global Key Market Views portfolio:

Last Friday, my colleagues at BMI initiated a long Chilean peso/short US dollar view, which hit the initial CLP510.00/US$ target within days, [Read more...]

During a week when the Dow Jones pushed above 10,000 and oil set up a new high this year, there certainly is plenty to look at across emerging markets (EM), and in particular in Latin America. Most Latin equities have been posting further impressive gains this week, and most currencies look strong against the US [Read more...]

The rally in Latin stocks since the lows of October 2008 has been nothing short of incredible. Some of the markets have risen by over 100%, and viewing the moves in dollar terms, the gains have been even more impressive/absurd. With such huge gains, it begs the question to Risk Watchdog of whether this is [Read more...]