Mexico's drug cartel war might overwhelm the manufacturing near-shoring thesis

  • Manufacturing near-shoring: proximity, young and cheap workforce, free-trade agreement with US, shift away from China

  • Insecurity: violent conflict among drug cartels after 2016 El Chapo arrest and gains of Jalisco Nuevo Generacion cartel

  • Mexico equities are on PB and PE in line with historic average; little protection against risk of deteriorating security
January 30th, 2023
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