The US, UK, Europe, and other countries are fretting about inflation, and investors are concerned.

Those that are concerned about inflation may want to take a look at Mexico, a standout in global markets.

Mexican inflation has gone down three times in the last three months. At 4.21% as of December, inflation is close to the Bank of Mexico’s target range of 2-4%.

The Bank of Mexico meets February 6, 2025 and rate cuts could be on the table.

If Mexico were a student and this was a parent teacher conference, it would be excellent, head of the class.

Investor hesitancy regarding Mexico seems to be centered on two ideas; potential US tariffs and the value of the Mexican peso.

Based on recent murmurs out of Washington, tariffs may not be as bad as expected.

Regarding the peso, after a 20 plus percent fall versus the US dollar in 2024, the peso seems to be stabilizing. On the day of the recent US CPI release, the peso strengthened a little. Year to date it is a little up.

If more US Interest rates cuts are coming, the peso could remain stable.

A combination of a stable currency and 8 plus percent yields on CETES seems like a good proposition.

A proposition that would take any

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit etherfuse.substack.com