Ecuador real estate values are affected by politics and food! The table talk here at El Meson yesterday centered on the politics and inaugural celebration of Ecuador’s new President, Rafael Correra. As mentioned in an earlier message Correra stayed here at El Meson recently so we could have a Correra room with a sign, “The President Slept Here”.
The question that affects Ecuador real estate value is how long could the sign stay up?
History suggests that predicting Ecuador real estate value and keeping the presidential slot are both tough jobs. A majority of the population has been kept down for a long time. They are frustrated and like in the US , the people spoke. They want the old corrupt system cleaned up (as I suspect Americans do). This is good for Ecuador real estate. Correra has some good credentials to do the job. He is young and has energy. He has a US education in economics and his sister lives in California . His wife is Belgian so Rafael is a cosmopolitan guy. These facts are all good for Ecuador real estate as well.
But does his youth mean he lacks experience?
History suggests that the poorly educated populace here votes again and again for anyone who makes wild promises to help. Every time the political support erodes when the new El Presidente does not untangle this 200 year old can of worms in just a few months. Politcal disturbances can keep Ecuador real estate values down.
Correra definitely stared down the six US Senators that recently came. Good for him. The US foreign policy has treated Ecuador pretty badly and some dramatic change is probably good. Correra on the surface got what he wanted. This coiuld be good for Ecuador real estate values also.
During the inauguration he had the leftist presidents of Venezuela and Bolivia with him for the ceremony. This is a bad decision to align with those who support a system that has proven it will lose. He is following a bad lead that could plague current Ecuador real estate values. The last President, Gutierrez, invited Fidel and look at what good that did for him. The same people who elected him went to the streets in peaceful demonstrations in hardly two years and demanded he leave. He did!
Oil income may help Venezuela and Ecuador run on an unreasonable global basis for awhile. In the end if people want the goodies from the sweat off other people’s backs in other countries they have to produce something to trade in an efficient, productive way. Real estate in Ecuador will be affected by the productivity of the people.
The way to make the nation richer and to help Ecuador real estate value to grow is to help the people become more productive and to open more trade. If he can do this with leftist threats, good for him.
However if one believes the papers, his first task is to convince Ecuador’s Congress to approve a referendum to eliminate the Congress. I doubt this will happen.
There is some fear about this new President. I am told that borrowing money in Ecuador has become more costly (because bond rates have risen). So let’s assume for now that the new guy increases risks.
I am buying more Ecuador real estate if I can while others are running away. I just keep remembering my landing in Hong Kong in 1968. There were bombs in the street, the Chinese army massing on the border. Many people fled. Those who stayed and bought land are the billionaires of today!
Ecuador hardly has that potential but there is plenty here. Look again at the numbers at garyascott.com/international_investments/international_investments_156.html
A reader just wrote this:
“Hi Gary , The question is…. what happens when Americans wake up to the truth? They lose all faith in government, especially the current one…. maybe then lose faith in other structures… like the currency, the stock market, etc… maybe even US ability to meet bond obligations. How do markets react? How do other countries react? Does this open the door for more, or less, totalitarianism? I don't know the answers to any of these questions, but if we don't keep asking them and looking for signals, we'll sure as shootin' get blind-sided.”
My experience is from listening to others is that many Americans have lost faith so Ecuador may have some potential problems but when one looks at the risk in America from inflation, higher tax, litigation risks, high cost of insurance and increasing infringement of human rights, the risk here get put in perspective. This suggest that many will move and some of those who immigrate will come to Ecuador. This is good for Ecuador real estate values.
I was also impressed with a quote from a newsletter a reader did not name which told the success principles of one of China ’s richest men by the name of Lee. Here are Lee’s rules for success:
Rule #1: Choose the right country. This is one of Lee's cardinal rules, and his top pick is—you guessed it— China ! No argument here. Like us, Lee believes that China's economic emergence is a great wealth-building opportunity for investors. As the nation modernizes and continues to grow at a blistering pace, the profit opportunities will grow, too.
Rule #2: Choose the right industries. Again, no argument from me. Just as we do here in China Strategy, Lee only invests in companies that are industry leaders. In particular, he is bullish on highly regulated industries dominated by well-run state-owned enterprises (SOEs).
Rule #3: Invest for the long haul. Lee is staggeringly wealthy, but he didn't get that way by overtrading. If you invest in top-performing companies in the right economy, it makes sense to let these investments play out over time to maximize their potential.
Rule #4: Keep your emotions in check. This was the last (and one of the most important) points that Lee made in the article: It's important to stay calm when investing. He said many investors get too emotional about their stocks’ short-term fluctuations. To balance the stress of investing and life in general, Lee meditates for more than an hour each day and maintains a relaxed, cheerful attitude towards life.
This is good advice that encourages me about Ecuador real estate values here.
Now let’s get away from politics and talk about something important…food!
So many people are put down in this country that have incredible skills. When given a chance they explode with creativity. We learned to our surprise and delight when our chef and kitchen staff have erupted in artistic creativity. The meals they bring each day are such delights. Today’s lunch was a cabbage roll stuffed with Quinoa and baby shrimp accompanied by vegetable and potato pancakes. One of the guests said it’s the best meal they have every had in Ecuador.
You can see the artwork in this meal. Wait till you see tomorrow’s breakfast!
We are completing our business plan for this internet service now on the Ecuador Expedition and the annual fee with be somewhere between $99 and $149 a year. We will do extensive advertising on the internet to build this business. Merri and I are sold on Ecuador , have more than a decade's experience here and are now pulling out all stops. To help you get started I am making a really special offer. Order the Ecuador Report now and I'll sign you up for a free year's subscription to our Ecuador Expedition internet service. You'll save somewhere between $499 and $100! You can order the report at https://www.garyascott.com/catalog/ecrep/
So if events and change in your locality or country are getting you down, forget it and think about wonderful food! Remember, the sun always shines somewhere. Remember what’s important. Live and enjoy the moment especially at each and every meal.
P.S. Join us in the Ecuador sun this winter. Here is a schedule of the courses Merri and I will sponsor and or conduct.
Jan. 22 – 26, Mon.- Fri. Self-Fulfilled: How to Be a Writer & Publisher.
Feb. 20 – 25, Tues.-Sun. Import-Export Course.
Mar. 9 – 15, Fri.-Thurs. Expanded Super Thinking + Spanish.
Mar. 16 -18, Fri.-Sun. International Business and Investing Made EZ.
Mar. 19 – 21, Mon.-Wed. Andes Extension & Real Estate Tour.