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Countries In-Depth

Mexico: The Stars Remain Bright

by Juan Egana, Latin America Strategist  

Continue overweighting Mexican stocks, sovereign credit, and local bonds relative to their respective EM benchmarks. That said, the peso is overbought and will correct versus the US dollar. Therefore, we recommend that investors hedge the currency risk for their outright long positions in Mexican equity and local bond markets for the next few months.

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