Mexico

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

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January 30th, 2023
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This report is independent investment research as contemplated by COBS 12.2 of the FCA Handbook and is a research recommendation under COBS 12.4 of the FCA Handbook. Where it is not technically a research recommendation because the subject of the research is not listed on any European exchange, it has nevertheless been treated as a research recommendation to ensure consistent treatment of all Tellimer's research. This report has been produced by the analyst(s) named above (the "Analyst").

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