Admiring the Weekly Moves South of The Border

As 2014 begins to take shape, we thought it would be wise to look at opportunities around the globe. It is no secret that the major US benchmarks recorded a robust year in 2013. However, many other countries around the world did not participate. Could there be a reversion to the mean trade where certain regions will attempt to play catch up? We are not suggesting that domestic indexes will falter, but it is certainly plausible that world markets will perform much better than they did in the last year. For example, let’s take a look at our neighbor south of the border: Mexico. Measuring its current one year return of -7% by way of EWW, one can see it would not be difficult for EWW to achieve better results in the next twelve months. The EWW gained 2.5% on firm volume Friday, making it one of the better performing country ETFs around the globe. There may be optimism for Mexico’s prospects, as last month its president relaxed its 75-year-old statute of disallowing foreign investment in its decrepit oil fields. Freer markets have a greater chance at success. Let’s take a look at the EWW and some other individual names that may stand to benefit.