Crystal Shore Alpha’s Post

Big if's remain; nevertheless, the potential is broader than in the last decades. Biggest challenges are implementing rule-of-law and crafting a set of laws that foster economic development and innovation. #GoMexico. That being said, if the next Government achieves even mediocre success, the potential for good returns on investments seems high.

Week 30, 2024 in Latin America. Take a glimpse at what is happening in the region. This week's topics include: - 10 trends in the Latin American Economy - Venezuelans are set to vote in a presidential election on July 28 - Credit Saison committed $100 million to Brazil 🔍: https://buff.ly/3YfJMYr #markets #business #technology #currentaffairs #investments #latam #latinamerica

Strategic election in Mexico tomorrow… The reason that Mexico’s capitalists are not investing productively, despite a high profit share and low taxes, is that the profitability of Mexican capital has been in secular decline and so productive investment has been rejected in favour of real estate and financial speculation. And much of the profitability has ended up in American companies.

Mexico's economic landscape is characterized by a delicate balance of opportunities and challenges. The benefits of nearshoring and robust trade relationships provide a strong foundation for growth. However, addressing economic deceleration, fiscal challenges, and political uncertainties is essential for sustainable development.

Given the economic and political backdrop, what are Mexican firms identifying as their key opportunities and concerns for 2025? Today’s MND has the details of a recent study. https://lnkd.in/eJXU9bDC

Ruchir Sharma with a sobering verdict on Europe. "A widening transatlantic gap is inspiring glee in the US and angst in Europe. Though their per capita income levels were similar a couple of decades ago, growth (in constant dollars) has been twice as fast since 2010 in the US than in the UK and the EU’s Big 4 economies — Germany, France, Italy and Spain." This is what happens when the economic direction of a continent is in the hands of regulators. It's like handing over the management of corporations to controllers and compliance officers.  What's more, the political players at EU level are second- to third-rate politicians who have generally had mixed careers in their home countries (such as the recently reappointed EU President, who attracted attention in her last national job as Minister of Defense primarily due to her excessive use of external consultants).

Argentina vs the World or The Power of Will... The graph depicts a five year trend of 3 national stock indices (Argentina,Germany, Greece). Greece since late 2023 seems stationary but thats not the purpose of this post. This post showcases that the will to implement sound but unpopular (depending the audience) reforms can have drastic and immediate result in capital growth and economic climate shift. Argentina currently implements a rapid liberal agenta that focuses on private investment, privatization and control public spending among others. This rapid change is depicted through massive growth in capital markets that currently hoovers above the German index. Long term this policy could significantly change the economic environment of Argentina and the wellfare of its citizens. Once you realize the state should be run just as an ordinary family firm (control expenses, rationalize operations and be competitive and adjustable to the reality) everyone thrives.

The U.S. Counterweight in Mexico #Mexico would become the fifth Latin American country with a legislative supermajority, but it’s a grouping that does not augur well for Mexican democracy—Cuba, El Salvador, Nicaragua and Venezuela. While the Mexican government has touted FDI reaching a historic high in Q1 2024, last year *only 13%* of FDI represented greenfield flows, or new investment. In other words, most FDI was made by companies already invested in the Mexican market, not those considering it as a new option.  https://lnkd.in/gUyEeCf4 #nearshoring #mexico #challenge #democracy

https://lnkd.in/df8fdGZU << Unfortunately, Trump is only a symptom of much deeper problems.  Though the EU is focused on Trump and what he might do next, when it comes to Europe’s economy, he’s not the real issue. Ultimately, all he is doing with his persistent tariff threats and bombast is pulling back the curtain on Europe’s rickety economic model. If Europe had a more solid economic foundation and were more competitive with the U.S., Trump would have little leverage over the continent.>> #Europe #Trump #economy #model #US #continent #crisis #competition