Still, J.P. Morgan sees opportunity south of the border.
“We are OW Mexico based on (1) strong forecast economic growth acceleration to 3.4% in 2014E from 1.4% in 2013E; (2) estimated domestic FX appreciation (vs. the USD) through 2014 year-end (MXN12.25 /USD); (3) enhanced cost competiveness and high sustainable growth outlook – the agenda on reforms has advanced; and (4) leverage to an expected US manufacturing rebound,” according to a note from the bank obtained by Barron’s.
If EWW closers lower this year, that will represent the ETF’s third annual loss since 2007. Since its debut in 1996, EWW has only notched consecutive annual losses during one period: 2000-2002.
iShares MSCI Mexico Capped ETF
