South America, for the most attentive investors, is much more than Brazil: for example, the Mexico, which benefits from some positive trends, including the start of a credit cycle and a slow penetration of financial services, rising wages, energy-related reforms and a renaissance of the manufacturing sector. Furthermore, Mexico is one of the few realities in the region that is implementing sufficiently orthodox policies to balance the GDP growth model, leaving aside the devaluation of the currency and the raising of the price of raw materials. Despite several disappointing results due to the political transition, weaker exports to the United States and some problems in the real estate sector, a significant turnaround is expected in the second half of the year. Value perspectives on banks, airports and consumer goods at discounted prices, but pay attention to the rest of the market, especially in the energy and infrastructure sectors.
The Argentina, on the other hand, represents one of the most interesting long-term buying opportunities. Contrary to other emerging countries, the government is implementing the right mix of rates, currency and fiscal policies that will allow the country to obtain international loans. However, the current situation is characterized by several critical factors, but it is expected that the elections to be held in October 2015 will bring everything back to normal. Argentina, therefore, is a country that cannot be ignored by an investor with a long-term view.
From the Kairos Partners website
