Welcome to Colombia!

“Would you invest in Brazil 15 years ago if you had the chance?” our Colombian host asked me one night, in an effort to frame the opportunity here.

“Of course, that would’ve been a home run,” I said.

“Welcome to Colombia.”

We were sitting in a comfortable restaurant in Medellin’s downtown area. Medellin is a pretty city that spills out across a river valley and creeps up the walls of the surrounding mountains. Medellin’s nickname is the City of Eternal Spring, thanks to its temperate weather. If you have an image of Medellin (and Colombia) as a violent place, a visit here would change your opinion. We could have been in any number of cities around the world. I never felt unsafe. (As with any city, there are good and bad areas.) The bars and restaurants were full at night. The skyline was lit with tall buildings. The sidewalks busy with people. It was not always so, as Medellin was once a notoriously dangerous city.

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CUBA: Preparing for Perestroika

Dividing Old Havana from Chinatown is Cuba’s Capitolio Nacional, a monumental edifice with a fateful past. El Capitolio was conceived during the Roaring ’20s, when the island led the world in sugar exports and the future seemed sky blue.

President Gerardo Machado dreamed of turning Cuba into the Switzerland of the Americas. He decided that his 4 million countrymen needed a domed capitol building even taller and more ornate than the one he toured in Washington. So Cuba’s Congress dutifully poured 3% of the country’s GDP into their new home. (This would be akin to the US Congress spending $420 billion for a new office today, but let’s not give them any ideas…)

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Shaking Off the Fears of Emerging Market Investing

Throughout our working years, most of us try to ensure that we receive adequate compensation for our labors. We try to receive an “honest day's pay for an honest day's work.? And if there is to be any dishonesty in this calculation, we prefer that we be dishonestly overpaid.

But when it comes to investing, most of us are much less exacting. We simply expect to do okay “over the long run.? And because we expect to do okay over the long run, we are very tolerant of disappointing returns over the short run. In other words, we expect to get underpaid from time to time.

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Sweet Profits in Sugar?

August, the eighth month of the year, is the last month before the traditional harvest time in the Northern Hemisphere. Thus, the old saying was “If the 24th of August be fair and clear, then hope for a prosperous Autumn that year.?

So far, the month of August has been very fair and clear for the stock market…and for the commodities markets. These buoyant trading days of early August continue last month's bullish action in both the stock and commodities markets.

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Emerging Market Update: Buy Brazil

I’ve been thinking about Brazil more and more as I study what’s going on in the world. More and more, I come the conclusion that Brazil will have a big hand to play. For investors, there will a variety of opportunities.

For instance, the cerrado: a vast savannah that is one of the most productive farming regions in Brazil. It produces 54% of Brazil’s soybeans, 28% of its corn and 59% of its coffee. It also supports 55% of Brazil’s beef industry.

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Emerging Market Investing: Why Your Portfolio Should Not Speak English

When Gen. Cornwallis surrendered to Gen. Washington after the Battle of Yorktown, the British band supposedly struck up the tune “The World Turned Upside Down.? After all, such an outcome would have been unthinkable at the start of the American Revolution.

That is in the nature of things, however. No one stays on top forever. Only recently, the mighty US consumer – long the dominant force in world trade – has lost its top seed. There is a brave new world emerging, and it has a brave new consumer. This time, it's Americans that might want to strike up that old ballad.

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Emerging Market Investing: Where the World’s Headed

I’d like to share one anecdote with you that says a lot about how the world is changing.

Last week, Caterpillar, the world’s biggest maker of earthmoving equipment, said it was boosting its production in Brazil and China. It’s building a new facility in Brazil to build things like backhoes. And it is quadrupling its output in China over the next four years. It also plans to base an executive in Asia for the first time.

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As the World Turns: A Few Notes on Emerging Market Investing

In a recent edition of The Daily Reckoning, Bill Bonner observed, The world turned against them at the beginning of the Industrial Revolution. But if the world turns long enough, it comes back to where it began. He was writing about India. But he could have been writing about China…or Nicaragua…or any one of a number of emerging markets.

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Daily Reckoning Group Research Project: Trade of the Decade, Part II

We asked. You answered.

We asked you, the Daily Reckoning readers, to submit your ideas for the Trade of the Decade. You responded with a flood of excellent responses. We regret that we cannot publish them all.

Yesterday, we presented some of your submissions. Today, we present a few more. So without further ado, heres goes:

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