Mexico Starts 2023 as the Top US Trading Partner : Infographic

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Mexico is benefitting from US firms’ near-shoring manufacturing operations since Covid-19 and the recent supply chain crisis. One way to validate this is by reviewing trade data between the two countries. According to recent data, Mexico’s trade with the US has increased year-over-year for the second consecutive month in January of this year. The following infographic shows some of the related facts:

Click to enlarge

Source: Freight Waves

It is interesting that some of the top export products to Mexico are motor vehicle parts and computer chips. These items are used in the assembly of automobiles and computers making them as the top import products into the US.

Bull and Bear Markets from 1945 to 2021 for UK Markets: Chart

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The bull and bear market for the UK equity market from 1945 to 2021 is shown in the chart below. The returns shown are based on total return of the FTSE All Share Index in local currency. The average bull market during the period had a duration of 5.9 years and the average bear market lasted 1.1 years.

Click to enlarge

Source: Vanguard, UK

Related ETF:

  • iShares MSCI UK ETF (EWU)

Disclosure: No Positions

Mexican Airport Operator Stocks Have Performed Well This Year

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The travel industry is one of the big beneficiaries of the revenge spending since consumers started traveling again from last year. Within the industry, many airlines have earned record revenues and profit for the first time since the pandemic. For instance, US-based carriers reported record Q4 earnings recently. Soaring travel to tourist destinations and also rise in business travel particularly between US and Mexico have helped the growth of Mexican airport operators.

The three US-listed Mexican airport operators have performed very well so far this year. The tickers are:

Grupo Aeroportuario del Pacifico SAB de CV (PAC)

Grupo Aeroportuario del Sureste SAB de CV (ASR)

Grupo Aeroportuario del Centro Norte SAB de CV(OMAB)

The chart below shows the year-to-date return of these stocks:

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The following chart shows the 5-year returns:

Source: Google Finance

Disclosure: No positions

The Vanguard 2023 Index Chart: UK Edition

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British equities have performed poorly in recent years since the Brexit saga began. When compared to US peers, British stocks have earned poor returns for 1993 to 2023 as shown in The Vanguard 2023 Index Chart below. Since 1993, US stocks would have earned an annual return of 10.49% relative to British stocks which had an annual return of just 7.39%. Even European higher returns than their British counterparts.

Click to enlarge

Source: Vanguard UK

Related ETF:

  • iShares MSCI UK ETF (EWU)

Disclosure: No Positions

Historical Annual Returns of the Australian Stock Market From 1980 Thru 2022

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The Australian economy is a resource-based economy similar to Canada. Exports of commodities such as coal, iron ore, etc. are critical for the economy. In fact, natural resources account for 68% of exports with China being the top export market. With that said, the Australian equity market has performed relatively well in recent years. The market declined by 40% during the Global Financial Crisis (GFC) of 2008. But since then it has had a down year in only 3 years. In 2022, the market as represented by the All Ordinaries Accumulation Index fell by 3% which is not bad.

Overall from 1980 to last year, the number of positive return years is higher than the number of negative years as shown in the chart below:

Click to enlarge

Note: The returns shown above are based on local currency and not US dollars. The index used is the All Ordinaries Accumulation Index which includes dividends reinvested.

Source: Market Index

Related ETF:

  •  iShares MSCI Australia Index Fund (EWA)

Disclosure: No Positions