For example, one reader just wrote: “Dear Gary: My stepfather in law speaks Spanish and takes several Spanish newspapers. He brought me an article last night that states that Correa has asked for the suspension of private property rights. Are you familiar with this?”
I have not heard anything like this and asked our feeling and attorney Dr. Andres Cordova in Ecuador who replied:
“Even though Ecuador’s new President, Rafael Correa, leans to the left, it is exceedingly unlikely under any scenario that Correa will in any way disturb private property rights. Our constitution and our legal system are very clear about private property being one of the pillars of our Economy. It’s a fundamental right that’s been with us since we became a Republic almost 200 years ago. Furthermore, the Ecuadorian Constitution expressly provides that there shall be no form of confiscation in Ecuador. With this to consider I see it as a very, very far stretch that the President may try to limit private property rights. I don’t think society would permit this nor that he’d want to do this.”
This is a view I hold as well and herein is the opportunity in Ecuador. During the time of change ahead, (which will last at least a year), there will be turmoil, rumors and concern probably engorged by the daily press. The will tend to undervalue investments (especially real estate) in Ecuador. Yes there is a risk that my (and Dr. Cordova’s view will be wrong).
The opportunity comes because due to the rumors we are paid an extra high premium for speculating in Ecuador. The rumors enhance our odds and this, my friends, is all we get….odds. Every investment has some risk. All we can be sure of is change. There are always unseen and unknown forces at work. We use our experience. We apply our intellect. We feel our intuition. We check with our astrologer. We listen to experts. We read reports. In the end we still have to plunge into the unknown as Merri and I have been doing for 39 years.
Avoid paying a premium (reduced odds for success) to invest in something that is assumed to be safe (like US Treasury bonds) but is not.
Get paid a premium instead (increased odds for success) by investing in things that the masses assume are dangerous, but you know from experience and study may actually be quite safe.
Power in Leverage
Then if you really want to increase your returns, leverage the investment.
Learn how leverage pushed up our model portfolio 135% in six months. See International Investments Course with Multi Currency Investments and Portfolios
At our upcoming IBEZ in N.C., we will look at how to use leverage in the upcoming economic scenario. Join us May 25 – 27, 2007 at the International Business and Investing Course in North Carolina . Thomas Fischer joins me to update global economics there. See International Investments and International Business Course, West Jefferson, North Carolina, May 25-26-27, 2007
Leverage can be used to enhance health as well as wealth. You can see in the passport photo above how I was gravity challenged on the scales! At 21 my weight was 220 pounds (I have to stretch to do 5”8”), three packs of camels a day and way too much beer. See in tomorrow’s message how I used leverage to make 60. Here is Merri and me, about to take a hike on my 60th birthday.
We’ll look at how leverage can help wealth and health in tomorrow’s message!
Join Steve, our man in Ecuador, June 6 – 10, 2007 Weds. – Sun. for a Condensed Super Thinking + Spanish Course. Ecuador Spanish Course through Super Thinking + Super Memory
June 13 –15, 2007 Weds. – Fri. Andes Extension & Real Estate Tour in Ecuador. Ecuador Real Estate
June 19 – 21, 2007 Tues. Thurs. Shamanic Mingo. See Ecuador Shaman Mingo Tour
Attend all three courses and tours. Save up to $398! See Ecuador Tours – June 2007
Or join Steve for our next Ecuador Export Course July 17 – July 22, 2007 Tues. – Sun. See Ecuador Exports Tour