Rock: Why Mexico is a bright spot for EM investors

ON BRICS

Emerging markets have long been a source of attractive returns, but recently key regions such as Brazil have hit the skids. Here Architas' Caspar Rock explains why Mexico can provide investors with more of the good times.

Probably at the forefront of emerging market investors’ minds is the recent downturn in Brazil – one of the BRIC countries and the largest single component of the MSCI Latin America index. Brazil is very much a commodity-related economy – the two largest companies in the MSCI Brazil index are an oil ‘major’ and a commodity producer. As the Chinese investment-driven boom tails off, global demand for commodities has declined substantially, to the extent that some contend that the commodity ‘super cycle’ has come to an end. Brazil’s growth has consequently been hard hit and company ea...