International Investments in Eastern Europe – Up 1,062% in Six years
International Investments in Galapagos
International investments in Ecuador may shortly get a huge boost. International investments in Ecuador real estate may become an even greater opportunity. International Investments in Eastern Europe are 1,060% in six years. See why they were missed. International investments in Galapagos. Are they safe from Tsunamis? Read below
Yet sometimes we see change and opportunity but call it ruin. A Bird’s Eye View sees that chaos is the universal way. Life is three forces, birth, stability and death…and nature makes sure they are always in balance. When things appear imbalanced, it’s our misunderstanding, not an error in the universal way. Most investors look for stability…but the profits never lay there. All the positive change in life comes from endings. They are the birth place of new beginnings.
Smart investors adapt and get in tune with reality, not the other way round.
Yet the masses hate change so they miss the greatest opportunities because they run from the places where profits are best.
I am sure many Romans thought the world would end when the Roman Empire fell. Yet look at what a glorious place Italy remains to this day.
Think about the old Soviet Union . During the Cold War Era, I conducted a seminar in London . One of my speakers was the member of Parliament responsible for looking after Mikhail Gorbachev (who had just become Premier of the Soviet Union at that time) while he was visiting England . The speaker spoke in horror about the intelligence of Gorbachev. Our spirits sank. We correctly assumed the Soviet system was bad but incorrectly believed that a smart new leader would make it even worse.
Had we been in touch with reality we would have correctly thought “the Soviet system is bad, so a really smart man will change the system.” Gorbachev did and we should have been getting ready to invest. Those who got into Eastern Europe from the beginning of the 1990s have made huge fortunes!
Take this decade alone as an example. Since the first of January 2000, the Jyske Invest Eastern Europe Fund which is currently invested mainly in Russia, Poland, Hungary, and has risen from 100 euros per share to 500 euros per share.
At the beginning of 2000 the euro was one to one with the dollar. With the euro appreciation, the fund price has risen from US$100 per unit to $635, by October 2006, an astounding 100% per annum appreciation.
You can see the Jyske Invest Eastern European Fund performance chart for January 2000 till October 2006 below.
You can learn more about Jyske Invest’s Eastern European Equity Fund from Thomas Fischer at email@example.com
Join Merri, Jyske Bank and me at our upcoming November International Business and Investing Course in Ecuador. Learn about investing in Eastern Europe and much more. DETAILS TO ATTEND
Why did most investors miss this profit?
Hold this thought. Many readers are expressing concern over the leftist leanings of the leading Ecuadorian Presidential candidate Rafael Correa and I wish to share an opinion as to why this could be good….if this man is elected and…if he does as his political stumping claims.
First, let me add that some readers mistakenly assume Merri and I are selling something in Ecuador. We are not. Our messages share what we are thinking, what we are doing and what we love. We love Ecuador and have been living there part time for over a decade. We like it…so we write all about what we learn and experience. We find Ecuador a fun, beautiful and friendly place. You may not.
Before you read my opinions about change in Ecuador please understand that if you never come to Ecuador it doesn’t make any difference to us financially.
Sure we’d love to visit with you. Yes, we hope you will come to some of our courses and seminars. Absolutely we would love you to stay at the Inn El Meson de las Flores .
But the hotel is for our charitable foundation. We do not make a penny from your stay. Plus we have plenty of seminars and courses back in the US.
However, from a monetary point of view it does not matter to us if you come south or not. I say this so you understand that there is no hidden agenda here. With this in mind please let me share my thoughts on what change in Ecuador could mean…if there is change.
Okay. Here is the concern. One populist presidential candidate, Rafael Correa appears to lean left and be close to Venezuelan President Chavez. He is in the lead. This worries some.
One reader forwarded a September 25, 2006 easybourse.com article, “Ecuador President Candidate Correa Favors Regional Currency” This article says: Left-leaning presidential candidate Rafael Correa said Monday that he would be in favor of Ecuador using an Andean or South American currency in the medium to long term, as opposed to the U.S. dollar, which has been Ecuador ‘s currency since 2000.
Correa, according to the most recent polls, is in first place ahead of Oct. 15 elections. He is 2-7 points ahead of center-left candidate, Leon Roldos, according to the three leading polls.
“It was foolish to begin the dollarization, and it would be foolish to leave it in the current conditions,” Correa said in a meeting with foreign media. “The dollarization is bankrupting us. It is part of the problem and not the solution.” According to Correa, the nation’s constitution maintains the sucre as the national currency.
The presidential candidate reiterated that if elected, he plans to convene a Constituent Assembly with absolute powers to draft a new constitution, and that body would decide the national currency.
He said he would be totally opposed to establishing the dollar as the currency in the constitution.
You can read the entire article Ecuador President Candidate Correa Favors Regional Currency
There is no doubt that Correa is gaining a lead in the campaigning at this time. Jyske Bank noted last week that his lead has edged to 10%.
Other articles in the popular press have also flinched at Correa’s rhetoric and apparent closeness to Venezuela’s Chavez. An October 6, 2006 article in the Wall Street Journal (page A15) was entitled “Will Ecuador Join the Axis of Outcasts?
There are many IFS.
IF he is elected.
IF he does as he says. We have watched many presidents, in more than just Ecuador, this past decade make a few campaign promises that they did not or could not keep.
IF he is elected and actually stays in office. We have seen more of Ecuador’s Presidents this last decade leave early than not.
I asked our friend and attorney Andres Cordova (his firm represents Ecuador’s Treasury).
He replied: “Dear Gary: Rafael Correa has recently taken the lead in the polls. His chances of becoming president depend on who’s the other candidate for the second round. Correa has been a staunch detractor of this dollarized regime. Nonetheless, he believes that getting out of it is not an option in the near to mid term. Currently Ecuador’s macro-economy is faring well due to the high price of oil and the money from migrants. If these sources of funds become affected then we’ll start to feel the heat. Best regards, Andres”
So MAYBE Ecuador will have a left leaning president. There are lots of ifs but here are some important points.
Some shift away from the US may be good for Ecuador. There are other great markets growing now, China, India, Europe, and Japan. Ecuador has always had a great Asian connection so why not.
Leaving the dollar may also be good for Ecuador. Irresponsible governments can ruin currencies and Ecuador’s government did a great job at doing this (ruining the sucre). We watched it fall from 3,000 sucre to 24,000 sucre per dollar in just a few years. However dollarizing has hurt Ecuador’s competitiveness against its neighbors who have continued to devalue. Perhaps it’s better to play the inflation game than no game at all.
Plus the greenback may not be so stable itself.
Here is the real catch. Removing the dollar from Ecuador will most likely be great for dollar investors. If Ecuador returns to the sucre or a regional currency, chances are that this currency will devalue from the US dollar and that prices in US dollar terms will fall. Land, life, and happiness will become less expensive for those from overseas who invest.
If Chavez is as bad as some believe (he may well be), then his influence in Venezuela, Bolivia and maybe Ecuador will wreak havoc in those economies. If their influence is bad, it will fail and investors who come to the rescue may make even more.
Other readers have even graver concerns. Numerous readers have asked about volcanoes, earthquakes, rising sea levels and tsunamis.
One reader shared: Galapagos!?….tempting… but what about prudence of the big bird’s eye view of our times and assessments of impacts on islands and coastlines?… two concerns come to mind: 1. rising ocean levels due to the ice caps continuing to melt… will this not affect the Galapagos?… and 2. Tsunami Tidal Wave action?… all my life on the West coast of USA … and knowing we are really due to have a BIG one in my lifetime right here off the NW California and Oregon coast is the biggest sub induction zone for sure… deemed to be the generator getting ready and ripe for action according to all geological studies which have become very intense over the past 15 years or so as the NW CA, OR, and WA started experiencing earthquakes where no one had ever known much or any earthquakes to occur… so Oregon has been acutely aware now that they never had earthquake building codes for safety and the emergency services for such crises were in old brick buildings that would surely fall apart under such strong earthquakes as the geologists are seeing evidence that this area has had BIG 9 or 10 point earthquakes that cause super huge tsunami tidal waves and the cycles of occurrence and the current action point to another one soon scheduled. Just rocking and rolling… but huge tsunamis can travel far and wide… the geologists say a huge one generated here will certainly reach Japan… I don’t know about Ecuador …. maybe AFTER the BIG one… we will look at land in the Galapagos…Please advise. … just another Big Bird’s High Eye View… there are prophecies of course that islands will disappear with coming Earth changes… how far and wide do you suppose the BIG one on the west coast of USA can push HUGE tsunamis? Maybe Father Nature is the High Eye Bird’s Eye View!”
I asked Dr. Andres Cordova about this one as well. He replied: This is a good question. Our Galapagos project Santa Fe lies some 7 to 8 minutes from the coast and is elevated by several hundred feet. In this regard I see it very unlikely unless we have a meltdown of cataclysmic proportions that it may be submerged at any time in the future.
What can I say? Ecuador does have strict building codes when it comes to earthquake protection. All the volcanoes around Cotacachi have been dormant for three thousand years so we do not seem to have any volcano problem there.
Plus our other place is here in the Blue Ridge Mountains, one of the geologically oldest, most settled safe places on earth. So we gain this protection. This is what diversification is all about. We love Ecuador and the Blue Ridge. Each offers very different, very wonderful lifestyles. Each is a different type of protection.
For example, what about the kids? I recently visited the local high school here in North Carolina and noticed that every entrance has a metal detector. From the last several weeks of news it appears that this type of security is not enough to safeguard US school kids.
Even without metal detectors there have been no shootings in Ecuador schools.
I’ll end this message with another quote from the reader above who voiced concern about tsunamis. She wrote: Mother Nature is feeling Feisty and I want to mention Father Nature too…It’s about time the children and the adults get a story that deals with this lack of a Father Nature story line in our culture… It always haunted me even as a little kid… well I am very in love with Mother Nature…. but Father Nature?…Clearly some stories need to be told and I think the kids deserve a whole understanding of a definition of the universe we live in that includes Father Nature too… Any ideas? Maybe Father Nature is the High Eye Bird’s Eye View!
P.S. No one knows what Ecuador ’s politics will bring, nor those of the USA. No one can tell when the next earthquake or volcano will hit this mountainous land. Nor does anyone have a date when the next big quake will shake California or the Northwest. What we do know is that you can invest, live and or own land and enjoy places like these below (taken and sent by Dr. Andres Cordova) at unbelievably low prices. You can learn more about Dr. Cordova’s Galapagos project at www.santafe-galapagos.com
Join Merri, Jyske Bank and me at our upcoming November International Business and Investing Course in Ecuador. Meet Dr. Andres Cordova. Visit the Galapagos after the course. DETAILS TO ATTEND