THE POLITICAL AND ECONOMIC situations in Mexico have changed materially since The Mexican Stock Market appeared in the May-June, 1962, issue of the Financial Analysts Journal. These changes are being reflected in the stock market. Things unclear two years ago have now been clarified, and fears and doubts that existed then have been removed. In Mexico's mixed economy, centrally directed government political events are extremely important. Barring death or major disability, Lic. Gustavo Diaz Ordaiz will be elected president, July 5, 1964, by 75 to 90% of the total vote, and he will be inaugurated December 1, 1964. He will have the unswerving support of the Congress which will give him all the legislation he seeks. While he will give lip service to those shibboleths, No intervencion and Autodeterminacion, which no Mexican president dare ignore, he will be more inclined than incumbent President Lopez Mateos to speak out against Castrocommunism, and will be firm in dealing with Mexican Communists. Rated a conservative, almost his entire experience has been in public and political life since college days. He is a firm believer in a mixed economy in which the state is prepared to intervene in economic affairs when in its judgment private enterprise is not moving fast enough, far enough, and in the direction it wants. He will impose his dictates on events and do things his way with subordinates of his choice. However, he is not expected to veer greatly from the course that has been followed in the past eighteen years by his three predecessors, though he is expected to stress agricultural problems and to endeavor to improve the internal terms of trade between the towns and the farms. President Alemain was a doer. His successor, Ruiz Cortines, was a consolidator. Lopez Mateos, after a vacillating start, became aggressive, taking over the electric utilities and distributing vast amounts of land to the peones, while tightening up taxation and driving for import substitution, industrialization, and sound money. Diaz Ordaiz, formerly Lopez Mateos' Minister of the Interior, will likely consolidate what has been done and do all in his power to maintain a sound internal and external currency, while advancing agriculture and encouraging industry. Politically, stability can be expected to continue under the prevailing one-party system.