According to Schroders, there are several reasons to be optimistic about Mexico’s macroeconomic landscape, explaining why emerging market (EM) fund managers are bullish on Mexico. The country benefits from a strong export relationship with the United States, which remains robust, and the prospect of nearshoring as a significant driver of future economic growth. Additionally, Mexico’s demographic profile, with over half of its population under 30 years old, supports long-term economic potential. These factors align with what Schroders identifies as the “3D Reset” trends: deglobalisation, demographics, and decarbonisation.
The future, however, holds uncertainties. Policy concerns have persisted under President Andrés Manuel López Obrador’s administration. Upcoming presidential, congressional, and gubernatorial elections in June add to the potential for volatility. Furthermore, the future of the US-Mexico-Canada (USMCA) trade agreement, due for review in 2026, will be crucial for Mexico, especially in light of the forthcoming US elections.
“The long-term outlook remains positive for Mexico, but the coming months may see some disruption. In addition, stock opportunities at this juncture are more constrained, even if aggregate equity market valuations are reasonable,” says Robert Davy, Emerging Market Equities Fund Manager at Schroders.
Read the complete insight here.
Read more
T. Rowe Price
Why US Treasuries may no longer be a safe haven
US Treasuries recent performance has fallen short of expectations.
Candriam
The euro bond market is back in focus
Rising yields and shifting fiscal dynamics are bringing the euro bond market back into focus.
Lombard Odier
EM equities – potential opportunities amid challenges
EM equities face renewed pressure amid US trade policy shifts, slowing growth, and investor outflows.
US Markets
100 days of Donald Trump
The first 100 days of Donald Trump’s second term have shaken markets. Asset managers weigh in on US equities, bonds, and the dollar.
