ETF Trends
06-20-2008, 06:20 PM
ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)
http://www.etftrends.com/images/2008/06/20/fighting.jpg Mexico is ready to throw down with inflation, which might turn its exchange traded fund (ETF) back around after negative one-month performance.
The country took two big steps to get control of the situation: first, they raised the benchmark short-term interest rate to 7.75%, from 7.5%. It's the first increase since October, says Tom Petruno for the L.A. Times (http://latimesblogs.latimes.com/money_co/2008/06/the-federal-r-2.html). Then, the country announced a deal with major food companies to freeze prices on more than 150 pantry staples through the end of the year.
The food-price freeze was supposed to forestall an interest rate hike, but Mexico apparently is extra-serious about fighting inflation. So far, the markets in Mexico like the moves, too: the peso is at five year highs against the dollar.
Will Mexico's commitment to fighting inflation give the Federal Reserve a dash of inspiration? Right now, it's between a rock and a hard place, because tighter credit could be a death sentence for the already-precarious situation of the financial companies.
The iShares MSCI Mexico (EWW (http://finance.yahoo.com/q?s=eww)) is up 3% year-to-date, but down 6.3% in the last month.
http://www.etftrends.com/images/2008/06/20/z_8.png (http://etftrends.typepad.com/photos/uncategorized/2008/06/20/z_7.png)
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/316471060/gloves-are-off.html)
http://www.etftrends.com/images/2008/06/20/fighting.jpg Mexico is ready to throw down with inflation, which might turn its exchange traded fund (ETF) back around after negative one-month performance.
The country took two big steps to get control of the situation: first, they raised the benchmark short-term interest rate to 7.75%, from 7.5%. It's the first increase since October, says Tom Petruno for the L.A. Times (http://latimesblogs.latimes.com/money_co/2008/06/the-federal-r-2.html). Then, the country announced a deal with major food companies to freeze prices on more than 150 pantry staples through the end of the year.
The food-price freeze was supposed to forestall an interest rate hike, but Mexico apparently is extra-serious about fighting inflation. So far, the markets in Mexico like the moves, too: the peso is at five year highs against the dollar.
Will Mexico's commitment to fighting inflation give the Federal Reserve a dash of inspiration? Right now, it's between a rock and a hard place, because tighter credit could be a death sentence for the already-precarious situation of the financial companies.
The iShares MSCI Mexico (EWW (http://finance.yahoo.com/q?s=eww)) is up 3% year-to-date, but down 6.3% in the last month.
http://www.etftrends.com/images/2008/06/20/z_8.png (http://etftrends.typepad.com/photos/uncategorized/2008/06/20/z_7.png)
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/316471060/gloves-are-off.html)