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John Authers

Mexico's AMLO Sets Stocks Up for Tremendous Rally

The president-elect inherits a strong fiscal position and won’t have to do much to win back investors. Also, Brexit’s new hope and the amazing Amazon.com  

President-elect Andres Manuel Lopez Obrador may pleasantly surprise investors. 

President-elect Andres Manuel Lopez Obrador may pleasantly surprise investors. 

Photographer: Pedro Mera/Getty Images South America

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The next president of Mexico, Andrés Manuel López Obrador, doesn’t take office until Saturday, but in a rather masterful fashion he has already set up stocks for a great rally during his tenure. Nothing is more important to stock market returns than the price at which you buy, and as my Bloomberg News colleague Andrew Cinko pointed out, that price has dipped recently in a way that breaks a trend that had stayed intact for virtually the entire term of the current president as measured in pesos.