Deep Dive: Mexican Stocks Recovering from Trump

The video discusses the performance of the Mexican Bolsa, highlighting its recovery to pre-election levels in peso terms and its current valuation. It explores the impact of currency devaluation on equities, comparing the situation to the UK. The discussion shifts to European political risks, focusing on the rise of populism and its potential impact on markets, particularly in France and Germany.

What is the main reason for the Mexican Bolsa's recovery to pre-election levels?

• Government intervention

• Weaker currency and revised earnings expectations

• Stronger peso

• Increased foreign investment

How does currency devaluation affect equities in local and dollar terms?

• Equities go up in both local and dollar terms

• Equities go down in both local and dollar terms

• Equities go up in local terms and down in dollar terms

• Equities go down in local terms and up in dollar terms

Why might a dollar-based investor be cautious about investing in Mexican or British stocks?

• Lack of market liquidity

• High local interest rates

• Currency devaluation inflating local prices

• Political instability

What is causing anxiety among US allies according to the discussion?

• Economic sanctions

• Breit Bart Isation of news

• Military conflicts

• Trade deficits

What is a major concern regarding the French economy as discussed in the video?

• Decreasing exports

• Le Pen's potential policies on a new currency

• High unemployment rates

• Rising inflation