Ok, this is getting a bit ridiculous.

Ever since Americans picked the bully over the crook, and the Mexican Peso began acting like a penny stock just after the promoters begin dumping stock, I’ve been literally inundated with questions about Mexico. It seems I’ve got a lot of American readers super keen to look for value where others fear to tread. A good thing!

I did point out back in early December what I thought about the long Mexico trade and in particular the long MXN trade idea.

I showed this chart of the iShares MSCI Mexico Capped ETF (EWW) which is a decent enough proxy for the Mexican stock market. Today it’s pretty much unchanged from when I first showed it to you over a month ago.

Here’s what I said then:

The reason I chose to show you this chart, one going all the way back to the GFC, is because I want you to see the forest and not get caught up in the gnarly branches and roots of the trees, and as such realise that despite all the brouhaha crossing your news feeds. Trump’s election is IRRELEVANT to this market. The trend was in place well before Trump began lashing out at the Mexicans and Chinese for stealing America’s rice bowls KFC.

So that was, and still is, my macro thesis and how Mexico plays into it.

Sure, the Peso is cheap and by many accounts the greenback is not, but this is knee-jerk, first level thinking to simply buy something when it’s cheap. When digging down into the bowels of the market to try figure out what’s driving capital flows and liquidity, I come to a different view.

This is the nexus of the articles I wrote about the eurodollar market. I urge you to drink lots of coffee and read it as well as the subsequent two articles: “The Eurodollar Market: It’s Not Working” and “Collateral Damage”, in which I explained my thesis as to why we’ve been experiencing deflation during ridiculous monetary expansion. A lot of my investment thesis stems from those articles and the knock on effects.

I’d planned to get some thoughts on Mexico when speaking with Mark Yusko today as he’s recently back from a trip there, however the conversation went long on other topics and so that’ll have to wait for another day. Maybe I’ll hit record and publish it as a podcast, which could be fun.

Instead, today I thought to bring you my buddy Kuppy’s (Harris Kupperman) take on Mexico because it’s a topic we’ve discussed quite a bit. And since Kuppy is a great stock picker (and I’m more of a macro guy), I thought I’d share with you his thoughts on how best to play the Mexico on sale story.