2023-05-19 01:04:00
The upward cycle of the interest rate of Banco de México (Banxico) came to an end this Thursday, May 18 and foresees leave it at 11.25 percent for an “extended period”according to its monetary policy announcement released this Thursday.
With a scenario in which the reference rate will remain at restrictive levels and inflation will also remain high for the remainder of the year and converge to the target of 3 percent until the end of 2024, investors They also have different investment options..
The economic analyst, Sergio Negrete Cárdenas, indicated that, in this period of high interest rates, long-term investors such as pension funds can see the fruits of the monetary squeeze.
“These high interest rates are a very welcome element for savers, especially for long-term; there are institutional investors such as pension funds and this period is being extraordinarily positive for obtaining good returns,” Negrete said in his Econokafka podcast.
He said that in recent months there is an additional incentive: the real interest rate. In United States, the Fed rate is at 5.25 percent and if there is an instrument that gives a yield of 6 percent and inflation is below 5 percent, it already “offers a yield above.”
In the case of Mexico, he explained that inflation is at 6.25 percent, but with an interest rate of 11.25 percent and instruments with returns of up to 12 percent per year.
“With inflation of 6.25 percent per year in April and a rate of return of 12 percent, well he is really very attractiveabove inflation and they will be even more so because the interest rate will not drop so soon,” he added.
What to invest your money in to have returns?
For example, in recent months the Treasury Certificates (CETES) have offered returns at rates not seen in more than 20 years. However, in recent weeks and given the expectation that Banxico has concluded its upward cycle, these yields have moderated.
On May 4 they offered a rate of 11.40 percent and on May 18 they dropped to 11.25 percent, according to data from the central bank.
And although consumption is affected by high inflation, companies of this type they usually present green numbers in the stock market.
So far this year, Walmart’s shares show a return of 5.1 percent and La Comer, 4.4 percent, while Chedraui shares offer a return of 24.2 percent on the Mexican Stock Exchange (BMV).
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