Ecuador Perceptions


Ecuador perceptions create opportunity.

What’s in a Word?

What can the perception of a phrase like “communist” or “terrorist” mean for us as investors?

There is opportunity in these words because most people never look beyond
the perception that has been endorsed by the establishment.  They react without  thought about the reality of a situation.

Let me share an example.

Merri and I love nature. We live pretty much in the wild. Our farm in North Carolina  is in an area so remote it is called “The Lost Province”.

Our hacienda in Ecuador is even more remote.

Yet our reclusive lifestyle was not always the case.  After spending my college years in downtown Portland, Oregon, I moved to Hong Kong, one of the most crowded cities in the world.

After moving to San Francisco I finally lived many years in London, one of the largest cities in the world.

London.  What a great city. I loved living there.  This was a really fun place and part of the fun was Ken Livingstone, the mayor at that time. He was so left wing we all called him “Red Ken”.

I mention “Red Ken” because many readers write to me expressing concern about the political stability of Rafael Correa and Ecuador.  The three words most frequently in the writing of these concerns are “populist”, “Chavez” and “left wing.”

Many people fear anything that seems to be left wing.

Ken Livingstone was so far left and such an unconventional and controversial politician that during the Cold War era he sponsored such events such as ‘Babies Against the Bomb’,and declared London a ‘nuclear-free zone’.

He not only was a “communist” but also endorsed terrorists.

Livingstone even extended an official invitation to terrorist leaders of the IRA’s political wing, Sinn Féin.  Britain denied entry to the invitees under the Prevention of Terrorism Act, so Livingstone met them in Northern Ireland instead.  Livingstone said that Britain’s treatment of the Irish over the last 800 years had been worse than Adolf Hitler’s treatment of Jews.

His actions were so left wing that he acquired the nickname ‘Red Ken’ and one British magazine dubbed Livingstone ‘Leninspart’.

Yet during Red Ken, the communist’s reign, London became one of the most affluent cities in the world.

Another example can be seen when I first moved to Hong Kong in 1968.  The Chinese communists were rioting. The first day I arrived in 1968 a British police officer had his leg blown off by a communist bomb.  We were taught at the office how to spot bombs in the street.  The Chinese army was massed at the border. These were the days of the war in Viet Nam and the “communist” threat seemed real to many.  Investors were fleeing Hong Kong left and right. I and a few others stayed.

Those who invested heavily in Hong Kong then, became some of the richest people in the world.

Those who saw the underlying reality and ignored the noise made by political manipulation and the local press made fortunes.

Another example is in Cotacachi.  Merri and I have been investing and living here for years while the mayor there, Auki Tituaña Males is so apparently left wing, there is a huge photo of him and Fidel Castro together on city hall.  That puts some people off!  Fidel Castro a communist!

Yet we have seen this mayor create a social economic system that has transformed the village into one of the nicest areas we know.  Prosperity has grown by leaps and bounds. What has happened over these eight years is remarkable!

Mostly I ignore politicians and the press and look for the deeper fundamentals that drive economics. i know that economics always drives the politics in the long run… not the other way round. Those who rise above and get ahead of political noise are the ones who profit most when the finances shift the politicians.

Places that have brought me the greatest profit are those where the political words and symbols look shaky but the economic fundamentals look good!

Whether Correa, the President of Ecuador is good or bad…I do not know.  A lot of what he says rings true to me…but I have been fooled before.

Will Correa’s actions have an impact on business in Ecuador?  Of course…but my belief is that his influence will not be as bad as many think.   He may even do some  good.

Thus I see bargains that abound in Ecuador because the majority is worrying about the inconsequential words, the noise, the small stuff and most of all the unlikely.  They argue over the scraps and leave the best for the few of us who look deeper.

I have been in Ecuador fourteen years and see little difference in the political noise today than when we arrived. the president then was a mad man (they called him El Loco) changing the constitution. Today we have another President changing the constitution. This President is not so crazy in my opinion.  Is he good? Only time will tell.

I have learned my lesson from London and Hong Kong!  Bring on the words that scare. They create opportunity.

Merri  and I really enjoy living in Ecuador.  When we look through the political noise, we see huge progress in living conditions, sweet non violent people, a wonderful climate…an abundance of sunshine and excellent food.

So we are buying as much real estate there as fast as we can based on our experienced view.

Had we been worry warts for the past 14 years because this or that might have happened we would have missed amazing good fortune…wonderful people…great weather…low cost living…excellent investments…and an amazing lesson that Ecuador’s rich culture has to share.

Of course there are others who are more afraid of George Bush, the US economy, the falling dollar and the American system. There are no guarantees here either.

Our advice on investing and business is to always look first for a place or task you love.  When you find it, go for it!  Take your chances.  Whatever we do, wherever we go, there is risk…so enjoy the process and look for places where fear, due to words and not fundamentals create extra opportunity.  What is within is usually more important than what is without.

We feel as safer or safer in Ecuador as in the US.  Only the future will tell which place will turn out better.  My guess is that both will be great.  I am quite happy with being double lucky but fully accept that no one can predict the future.

However, we expect to invest even more both in Ecuador and the USA. We love both places so we will enjoy the process whatever the outcome.  I look forward to sharing with you what we do and what happens.

That is our perception.

Until next message, may all you perceptions be clear.

Gary

Join us in the cool Blue Ridge while much of the U.S. burns up this summer.  We enjoy cool nights (mid 50s) sleeping under blankets without screens (translation-there are no mosquitoes here). Rarely does it reach 80 during the day and if it does a quick dip in the creek cools us right down. We have farmhouses, cottages, cabins and cottages you can stay in and enjoy. Rockers on the front porch (best for watching fireflies at night and eating sunny breakfasts), quiet pools to chill watermelon, waterfalls in which to soak, horses to chase, chickens and ducks to feed and we would enjoy meeting you.

Everyone who comes wants to come back and right now we can treat you to some fresh blackberry pie!
Cool-mountain-retreat

During breaks in the course join me for a hike in the woods.
We have a space left for you to join us this August 15-17, and learn about intuitive investing at Susan Rotman’s business intuition course.

Or join us October 3-5 for the Blue Ridge leaf change. International Investing and Business Made EZ  North Carolina

autumn-leaf-change

Enjoy the autumn leaf change in October.

Or enjoy one of our courses or tours in Ecuador

Ecuador Coastal-Quito Real Estate Tour

ecuador-beach-restaurant

While others worry about politics our tour groups find opportunity and enjoy wonderful seafood lunches at open air restaurants like this.

Ecuador Super Thinking + Spanish Course

Ecuador each hammocks

The future cannot be predicted but this is here…now.

Ecuador Imbabura Real Estate Tour
Ecuador beach house

Here is a house we inspected on our last coastal real estate tour for sale at $25,000.

Ecuador Import Export Course

International Investing and Business Made
EZ Ecuador

See discounts for attending more than
one course.



Free Newsletter on Ecuador

Free newsletter with updates on Ecuador and global opportunities to improve and enjoy your health, wealth, and life. I value your privacy. Period.



Related Artices

If you enjoyed this article "Ecuador Perceptions" you may find these related articles of interest too:

    None Found