Tuesday, April 27, 2010

Economic Positives

The peso is at presently at its strongest position vis-a-vis the dollar of the year, at just over 12 per. This represents an appreciation of the peso of about 20 percent since it reached its low during the crisis. This rebound was actually predicted by Pacific Investment Management last November, so kudos to those guys with their soothsaying prowess. The peso's strengthening is good for Mexico, but it is bad news for those of us who receive periodic payments in dollars. Then again I also get paid in pesos, so I'm screwed/blessed either way, so maybe I should quit complaining.

Unemployment is down below 5 percent according to official numbers.

Also, Grupo Modelo, which makes Corona and is one of the nation's most important businesses, announced a 17 percent spike in earnings in the first quarter of 2010. It's be nice if they paid all of us loyal customers a dividend denominated in their product, though I won't hold my breath. Anyway, such news was impossible a year ago.

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