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On 6/18 I wrote a note titled "Shorting Mexico", and the Mexican Bolsa has dropped -4.3% since. This is the beginning of the decline in Mexican Equities. Do not mistake it for the end.

The Mexican Bolsa Index has outperformed plenty of country indices globally since the "its global this time" Wall Street peak. Since October 18th, 2007, Mexico has only lost -14% of its value. Given their GDP's extremely high historical correlation to US GDP, and my GDP outlook for the US altogether, this remains one of the more precarious looking country's on my dashboard.

KM

(chart courtesy of stockcharts.com)