The Trump Effect Precipitating Mexican Peso's Fall

The video discusses the fluctuations in the Mexican peso over the past year, highlighting the impact of Donald Trump's rise as a presidential candidate. Analysts attribute a significant portion of the peso's decline to Trump's anti-Mexico and anti-free trade rhetoric. The video explores investor concerns and strategies to protect assets against a potential Trump victory, with Citigroup suggesting shorting the peso. The discussion also covers the implications of Trump's trade policies on the Mexican economy and the peso's volatility.

What was a major factor contributing to the 9.3% decline in the Mexican peso?

• A decrease in oil prices

• A change in Mexican government policies

• The rise of Donald Trump as a presidential candidate

• An increase in Mexican exports

How does Trump's stance create a 'double whammy' for Mexico?

• By reducing taxes and increasing imports

• By being anti-free trade and anti-Mexico

• By supporting free trade and increasing tariffs

• By promoting Mexican tourism and exports

What strategy is suggested by Citigroup to protect against a Trump victory?

• Increasing investments in the S&P

• Buying Mexican government bonds

• Shorting the peso

• Investing in Mexican real estate

What is the correlation between the Mexican peso and other assets?

• High correlation with emerging market assets and the S&P

• High correlation with European markets

• Low correlation with global commodities

• No correlation with international currencies

What are investors and analysts concerned about regarding a Trump presidency?

• The impact on peso-denominated assets

• The rise of Mexican tourism

• The stability of the Mexican government

• The increase in Mexican exports