Wal-Mart De Mexico: A Cheap Value Stock?

Mexico. It’s an economically stable country that benefits from its close proximity to the United States.

Yet Mexican stocks are consistently overlooked, mainly due to the country’s slow economic growth. And that’s a good thing. As Jeremy Siegel explains in The Future for Investors:

The conventional wisdom that investors should buy stocks in the fastest-growing countries is wrong for the same reason that buying the fastest-growing firms is wrong. China was indisputably the world’s fastest-growing country, but investors in China realized horrible returns because of the overvaluation of Chinese shares. On the other hand, stock prices in Brazil were cheap in 1992, and all its economic troubles kept its prices low over the subsequent decade. As a result, the dividend yield on Brazilian stocks stayed high. Patient investors, buying value instead of hype, won out.

Siegel continues, stating:

Countries with reasonably…