What is nearshoring and why is it important for investors?

Nearshoring is when companies move their operations closer to home markets instead of using distant suppliers. This trend has accelerated recently due to supply chain disruptions and geopolitical tensions. For investors, this creates opportunities in countries like Mexico that are close to major markets like the US. Companies in these markets often see increased business, investment, and growth as global corporations establish new manufacturing and service operations in their regions.

Why are Mexico and India highlighted in this investment theme?

Mexico and India represent two distinct advantages in the changing global trade landscape. Mexico benefits from its proximity to the US (nearshoring), strong manufacturing base, and trade agreements like USMCA. India offers a large, young workforce, expanding digital infrastructure, and growing tech sector. Both countries are receiving increased foreign investment as companies diversify their supply chains away from traditional manufacturing hubs, creating potential growth opportunities for local companies.

How can emerging markets enhance my investment portfolio?

Emerging markets like Mexico and India can provide several benefits to your portfolio. They often experience faster economic growth than developed markets, potentially leading to higher investment returns. They also offer diversification, as their market performance doesn't always move in the same direction as developed markets like the US or Europe. Additionally, these markets frequently have favorable demographic trends with young, growing populations driving increased consumer spending and economic development.

What should I know about the companies in this group?

This group includes stocks from key sectors in Mexico (CX, AMX) and India (INFY, HDB). CX (CEMEX) is a global building materials company. AMX (América Móvil) is a leading telecommunications provider. INFY (Infosys) is an Indian multinational IT company. HDB (HDFC Bank) is one of India's largest private sector banks. These companies represent industries that are positioned to benefit from shifting global trade dynamics, infrastructure development, and digital transformation in emerging markets.

4 handpicked stocks

Globalization Rewired

Global trade is changing, creating fresh investment opportunities in emerging markets. Our analysts have carefully selected stocks from Mexico and India that are positioned to benefit from supply chain shifts and economic growth.

Han Tan | Market Analyst

Updated 2 days ago | Published at mai 4