“We have never seen anything like this in Latin America.” — Daniel Di Martino, Economist
Special Alert: Today, I announce the world’s most sought-after speaker at FreedomFest. See below.
For years, I’ve avoided recommending country funds in emerging markets, and for good reason.
The China Fund is down 80% from its high way back in 2007. The Latin America Fund is down 47% from its high (also in 2007). Even the Singapore Fund has not grown in 15 years. Nor have European stock markets.
Sir John Templeton specialized in investing in Japan and other emerging markets from the 1950s through the 1980s. But since then, the emerging market bull has turned into a hibernating bear. He once warned, “The smart investor must know the difference between what is temporarily undervalued and what is permanently undervalued.” (See p. 33 of “Maxims” at http://www.skousenbooks.com).
In my investment newsletter, Forecasts & Strategies, I’ve profited handsomely by staying fully invested in U.S.-based stocks, mutual funds and exchange-traded funds. Wall Street has outperformed all other country funds in the 20th and 21st centuries largely due to U.S. technology stocks such as Amazon, Google, Microsoft, Apple and Facebook.
American Exceptionalism is alive and well!
One Exception: Argentina!
Now, in 2024, I’ve made a rare exception. One emerging market is suddenly in a bull market: Argentina! And we are making double-digit-percentage profits. It’s just the beginning. Read on…
Like other Latin American countries, Argentina suffered from inflation, bureaucracy and stagnation under decades of the Peronistas and big unions. Flight capital was its biggest export.
Now Argentina is on the mend, thanks to the election of the first libertarian president, Javier Milei. The public, especially the rising generation, had had enough of the Peronistas and a declining standard of living. Even the Chileans were better off under the Chile Model of free markets.
Back in the early 20th century, Argentina used to be one of the most prosperous countries in the world, then steadily declined under the dictatorship of socialist authoritarian Juan Peron and his popular wife Evita.
Don’t Cry for Me, Argentina
Will Javier Milei, an “Austrian” free-market economist whose mentors are Ludwig von Mises and Milton Friedman, bring back the glory days of Argentina? He has popular support, having won the national election with a majority.
It could happen. Milei is making progress with his radical agenda of reducing the size and control of government through deregulation, privatization and possible dollarization. He is cutting wasteful government jobs, achieving a balanced budget and overseeing a reduction in price inflation (he hopes to dollarize the Argentina currency and eliminate its central bank).
The Economist recently reported, “After 100 days he can boast of real economic success. His popularity is holding up, even as he lacks support in Congress. If he can keep the public onside until midterm elections late next year, he could dramatically bolster his influence and thereby his ability to remake Argentina’s economy.”
To see how hard-hitting President Milei is, watch his short address to the World Economic Forum in Davos in early 2024: MILEI’S 2024 DAVOS TALK, TRANSLATED TO ENGLISH BY AI (IN HIS OWN ACCENT)
My Argentina Investments are Up By Double Digits!
I’m so convinced that Milei can make a difference in Argentina and the rest of Latin America that I’ve been recommending the Global X Argentina Fund (AGRT). Since he was elected late last year, the Argentina Fund is up 40%!
In my trading service, the Low-Priced Stock Trader, I’ve also been recommending a deeply undervalued Argentina-based oil stock. It’s up over 20% in only two months, and the call options have more than doubled. (For more information, go to www.markskousen.com).
Even More Good News: Milei to Speak at FreedomFest!
I have even more exciting news. Javier Milei is now the world’s most sought-after speaker… and he has just confirmed that he will be speaking at FreedomFest this July 10-13, 2024, at the Caesars Forum Convention Center.
We surveyed who should speak at FreedomFest, and Milei came in #1, ahead of Elon Musk and Trump. He could be a historic figure if he succeeds.
I expect this year’s FreedomFest to sell out because of his appearance. Everybody wants to see and meet him in person.
Use the EAGLE50 code to get $50 off the registration price for this year’s big show.
Here below is our latest announcement including our other big-name speakers. To sign up, I urge you to go to http://www.freedomfest.com, or call Hayley at 1-855-850-3733, ext 202. Use discount code EAGLE50 to get $50 off the registration price. (This discount ends on April 30, so act now.) See you in Vegas in July for this historic conference.
We are delighted to announce the following new speakers joining our lineup:
We are also excited to have the following speakers appearing in-person on our stage:
Other keynote and featured speakers include Ice-T, Emily Compagno, Steve Forbes, John Mackey, Alex Green, Michael Shermer, Shawn Nelson, Grover Norquist, John Fund, Robert Kiyosaki, and many more. Plus our Eagle editors Jim Woods, Bryan Perry, and George Gilder. To see the full list of our growing number of speakers, panels, and breakout sessions — including the Global Financial Summit and Anthem Film Festival — and to find out how to attend, visit our website.
Good investing, AEIOU,
Mark Skousen
You Blew It!
Monopoly (Union) Power Is Alive and Well in Washington
By Mark Skousen
“Excessive market concentration threatens basic economic liberties, democratic accountability, and the welfare of workers, farmers, small businesses, startups, and consumers.” — President Joe Biden
Earlier this week, I gave a paper on monopoly power in a session on Marxism at the APEE meetings (Association of Private Enterprise Education) in Las Vegas.
Karl Marx failed miserably in most of his predictions. He predicted that workers would see their standard of living decline under capitalism, that profit margins would fall over time and that capitalism would suffer one crisis after another and would eventually collapse, to be replaced by socialism.
“The Twilight of Capitalism” has been the title of Marxists over the years, yet capitalism seems to recover after every crisis, stronger than ever. Poverty has fallen sharply over the past 200 years, and profit margins are about the same decade after decade.
But many economists think that one of his prophecies has been vindicated: monopoly power and market concentration have increased especially in the 21st century, where big business has dominated — witness the examples of Google, Facebook, Amazon, Microsoft and Apple.
In response, I suggested that monopoly power does seem to exist if you take a snapshot of the economy. But over time, market concentration dissipates as new companies and institutions come along to replace the old ones. Wabash economist Ben Rogge called it the “leapfrogging” effect. Harvard business professor Clay Christensen called it “creative disruption” in the marketplace.
In history, there are many examples: Microsoft has surpassed IBM… Toyota is now bigger than General Motors… JP Morgan Chase has more customers than Citibank…
Already Facebook, Google, Amazon, Apple and other big corporations are facing increased competition. Sadly the Biden administration and the European Union don’t take a long-term approach, and instead, are suing these big companies for being “monopolies,” even though they have in most cases increased output and reduced prices. The Justice Department recently sued Apple for “monopolizing the smartphone market,” even though it only has 23% of the global market share! It’s a fool’s errand, but will cost Apple a ton of money to defend itself.
The only time monopoly power survives is when the government mandates it, or forces small competitors out of the marketplace (healthcare being a recent example).
Las Vegas is an example. It’s a union town, where the taxi union controls the transportation system… and Encore is the only audio-visual company servicing the hotels, charging outrageous prices. But we at FreedomFest are doing our best to pass along cost savings to you. We have the lowest prices of any major convention in Vegas.
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