America Supplies Its Drug Dealers

Implications: As it turns out, gun dealers in Phoenix are supplying some/a bunch of the weapons which are being used in the drug wars below the Mexican border.  The Mexican Cartels send $ 15 Billion drugs to the U.S. and transports $ 10 Billion cash back to Mexico over the border.  As the article also tells us, the U.S. consumes more than half of the world’s drugs.  “Much of the Heroin, most of the Marijuana and methamphetamine, and 90 % of the Cocaine comes from or through Mexico” is written.  The ATF tells us that “they will fight to the death to protect their source and supply of drugs and their trafficking routes” when discussing the Mexicans and their trade partners, the Colombians.  

Analysis:  The battles are being waged in the vicinity of the U.S./Mexico border.  Nogales sits south of Tucson which itself is south 100 miles or so of Phoenix.  Juarez sits right across the Rio Grande from El Paso. The crossings extend east from El Paso to Laredo and Brownsville.   This all takes place while border commerce between the two countries is at an all-time high, which means that the border is increasingly important to both countries   How do you invest in this atmosphere?  Carefully.  Carefully can also be defined as asset buys which are seriously below reproduction cost in the case of commercial or industrial real estate in the border towns, This analysis can also be extended to the areas of Phoenix which are obviously impacted by the Border issues.  The best way to define these areas in the Phoenix Metro area might be to track the comings and goings of Maricopa County’s Sheriff as he moves to intercept illegal traffic.  You can see the Department is obviously active in Mesa, Guadalupe and West Phoenix. A cautious attitude is required in those areas in my opinion.