Ten Year Performance of the Mexican Stock Market

"Ten Year Performance of the Mexican Stock Market"," Ten years ago, the MX Peso was worth 5 cents; essentially unchanged. One of the most significant reasons for the firm currency in Mexico must be attributed to the policies of the new governing party that has been in control since 2000. The PAN party, led first by President Fox and currently by President Calderon supports balanced fiscal trade, flat taxes, lower taxes, and free trade. With these fiscal policies and close ties to the US and Canada, it's no wonder that the Mexican stock market has performed so well, advancing more than six-fold during the past decade. During the past 10 years, the gain of the S&P 500 has been less than 25% while the Canadian stocks advanced approximately 200% and the Mexican stocks a whooping 600%. Put another way, a $1,000 investment in the US after 10 years is worth $1,250 today, in Canada it's worth $3,000 and in Mexico it's worth $7,000! A gain of $6,000 in Mexico while only $250 in the US, , 24 times as much! Just imagine, a $200,000 investment ten years ago compounded annually at 20% would now be worth about $1,400,000 or if the gain were taken out each year, you would have had a $40,000 per year income and would still have your original $200,000 principal. While the US stock market has dropped by 15. 6% and the Mexican market by a mere 4. During the past decade, the Canadian Dollar has strengthened significantly against the US Dollar and the Canadian stock market has far outperformed the US market, falling off its recent highs by a much lesser extent. We were among the first of the fortunate retirees to move to Puerto Vallarta, Mexico in 1997 and have ridden the entire economic wave of growth and prosperity. During the past decade we have witnessed a construction boom in Vallarta and an ever increasing influx of retired North Americans as the population of Vallarta has exploded to 350,000 residents. Along with the increased infrastructure, all of the ""big box"" stores including Sam's Club, Mega Wal-Mart, Costco, Home Depot, Office Supply, etc. A half a dozen new golf courses have been built, a number of new yachting marinas have been built and existing ones enlarged, and clubs for all other activities have sprung up throughout the town. The cobblestone roads, the sound of mariachis in the air, the colorful tropical flora and fauna, the magnificent sunsets, the beautiful beaches along the Banderas Bay shoreline, and the majestic Sierra Madre Mountains as a backdrop will always provide the feeling of being in Paradise. In summarizing, if you're approaching the end of your career, retiring and investing in Mexico is worth your consideration. At this time, we see very few signs of a slowdown in Puerto Vallarta and living conditions couldn't be much better; however, as they say in the investment community, ""past performance is no guarantee of future results""! . IS THIS EVEN POSSIBLE  

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Mexican Stock Market