Mexican Stock Market Struggles

Includes: EWW, SMK, UMX
by: Bespoke Investment Group

While it may seem like stocks are going up everywhere, one country where they have not been recently is Mexico. Due to weak growth concerns, Mexico's benchmark IPC stock index has been falling hard this week, and it closed at a new six-month low today. After rallying along with the US at the end of 2012, the index turned on a dime in mid-January and is now down 12% from its high.

As shown below, the recent pullback in Mexico has allowed the US to catch up in terms of performance since the bull market began in March 2009. The S&P 500 is now up 147% since 3/9/09, while the Mexican IPC is up 139%.