SAN FRANCISCO (MarketWatch) - investors looking for direction from the US stock market might want to view from North and South - Canada and Mexico - for cheaper and better opportunities.
But Canada's resource heavy market and corruption and violence in Mexico are great risks.
Paul Vigna and Stephen Wisnefski speak faces over bribery claims in Mexico with Miguel Bustillo of the legal risks of Wal-Mart, and Charles trout describes the collapse of the Dutch Government as budget talks fail. Photo: Reuters.
"Canada and Mexico are opportunity and risk," said Scott Barclay, financial writer and editor of the e-newsletter investment opinion."An investor must be sure that oil prices rise, Canada look at a good investment," he said. "Mexico is actually getting more diverse." "However, corruption is headline risk."
Nevertheless, some analysts tout the benefits of these two countries for patient investors."Economic growth will few years, probably a little more here in the United States as in Canada in the next," said Nicholas Kaiser, Manager of the sextant international fund / quotes/zigman/211138 SSIFX + 0.40%. But "with 70% of Canadian exports hit U.S. markets, it well for Canadian industry."
/ Quotes/zigman/3870025 SPX 1,403.73, + 3.75, + 0.27%/ Quotes/zigman/20942 $ISPTX 12,211.02, + 65.17, + 0.54%
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Mexico's economy, "looks closely to the growth prospects of the United States and Mexico, with industry, Commerce and consumers benefit to improve growth in the United States of the recent improvement," said Allan Conway, head of the new shares in Schroders PLC. U.S. GDP grew 1.7% in 2011 on 2010, saw growth of 3% compared to the previous year in turn.
Last year the economy of Mexico and Canada, both grew faster than in the United States
Mexico GDP growth was 3.9% in 2011, but the country's Central Bank expects growth of 3% this year. At an annualized rate, 1.8% in the fourth quarter of last year, and the Bank of Canada extended real GDP growth in Canada forecasts growth of 2.4% for this year.In Mexico, trading partner, against risks associated must investors opportunity involved in the United States, the country up with ongoing corruption and violence to weigh - before recent bribery allegations Wal-Mart de Mexico, MX: WALMEXV + 1.25%, the largest foreign unit of Wal-Mart Stores Inc. / quotes/zigman/245476/quotes/nls/Messtechnik WMT + 0.21% read more at Wal-Mart de Mexico.
"Political, corruption and violence associated with drugs is a major concern for the Mexican economy and stock market," said MoE Ansari Compak asset management in Newport Beach, CaliforniaAt the same time, he added, "these risks are priced in stock prices in the form of lower GDP and [earnings per share] growth, which could be reached in Mexico."
The presidential elections planned for July added to Mexico's Outlook uncertainty.The nation has "Strong potential for head would necessary structural reforms, improving the competitiveness of the economy, depending on the ability and willingness of the next Government," said Clinton Carter, Associate Vice President for Latin America and Antonio Martinez, Latin America analyst at frontier strategy group.
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