Hola from Panama
Summer in Panama is marching closer to an end. Children head back to school here mid-March. By May the dry season is changing over to the wet season and July through October it rains heavily at times. By November the transition back to summer and dry season is underway.
Change is constant everywhere, isn’t it? An elder colleague in the early 90’s once told me; Life is not a GIC. It has its ups and downs just like the market, but you stay the course, learn from the setbacks and how to manage them, it all works out.
In my opinion, it’s important to embrace change as it often opens new exciting chapters. Even if you don’t want to experience them, at least you understand what you are saying no to. I learned years ago from several clients that travel is both rewarding and educational. I would read their “travelogues” with great interest each evening and share them with Audrey and Adam at the time. I was grateful to be “on the mailing list”. Another close friend told me several years ago, “I want to see, do and experience all I can or at least try. I just don’t want to be that person sitting around the campfire at the end of life and when it comes to my turn to speak about my great experiences…I need to say…pass”. This month she is finishing treatment for a brain tumor. Do what you can while you can. Procrastination is the worst form of self-abuse.
With that in mind we took up many activities over the years that others would not. However, the recourse is always there, meaning you can always change course, sell the boat, motorcycle, return home or simply regroup. Our departure from Canada is an extension of that. Creating and preserving some wealth gives you choices, which I have spoken about previously. In the past, Audrey and I have chartered our own sailboats in the BVI (we became licensed captains years ago) and now we charter them with a captain and cook. It’s the cook and full-service experience part that Audrey loves. Most recently this was in the San Blas islands of Panama’s Caribbean side (see photo link). Beautiful postcard beaches, complete with white coral soft sand and beautiful turquoise waters for swimming. The Pearl Islands offered a similar experience on the Pacific coast. Cartegena Columbia is our destination mid-April…more for the history, the old walled city and local dining as opposed to beaches. We are headed to Spain mid-May and then over to Dubrovnik Croatia for a couple days and Montenegro for almost a week. I’m excited to see Montenegro with its gorgeous scenery and historic towns. We plan to land in northern NY around June 8th or thereabouts. We will pop over periodically to see family and close friends in Ottawa through to early October. Maybe we will see you at an event or two.
Speaking of change, the US election has sure brought some and with it, uncertainty. People don’t generally like uncertainty and stock markets despise it. However, this will pass and hopefully Canada’s leadership does what’s right this time around and dismantles all provincial trade barriers pronto. This is the time for action, not more talk. Same with upgrading infrastructure so Canada can sell resources to someone other than the USA. Recall my thoughts on having options? Canada is now scrambling to find them as there has been far too much “opportunity cost” lost in Canada. The sleeping elephant next door has rolled over and Canada should position itself so it is never beholden to the beast again. Complacency is very costly!
Just because Canada and its government(s) did not plan for the worst does not mean you can’t. It’s always better to be two years early than two minutes late. Having a Plan B is a very good idea. You would never build a home with only one exit. You would never charter a boat without life jackets, flares and a dingy – I sure wouldn’t. In January I spoke about Citizenship through descent and my obtaining an Irish passport. March brought us both our new St Lucia passports along with those rights. In 2023 we obtained permanent residency in both Mexico and Panama. COVID taught us some hard lessons on restrictions, and we simply wanted the right to go somewhere if needed and/or when we wanted. We wanted control over our lives as opposed to our lives being controlled. With constant change afoot, it gives us options…choices and exit strategies. Banking, employment and residency options in the EU countries, Mexico the Caribbean community, Panama and of course Canada. I might add here, that many reading this would be surprised to learn how many Canadians have obtained a second passport. The growing trend is surprising. People and capital now easily go where they are treated best.
Think of it as diversification. In my opinion, for many people it’s as important for themselves as it is for their investment portfolio. Consider about where you might be in five, 10 or 30 years? What about your children’s access to other regions of the world. Some option exist that are amazing inexpensive and relatively easy to achieve. Citizenship through descent and second residency for example. It’s just one more arrow in your quiver and if interested, I would suggest you apply while you can as there is zero downside (unless its USA or Eritrea). Doors are closing, birthright grandparents/parents are aging and the qualifications get more stringent each year with these programs.
Lastly, tariffs, trade wars and the thought of geopolitical upheaval will stress markets and for some of you, your nightly sleep patterns. However, it is not something you have not witnessed and experienced previously. Only five years ago, COVID delivered a swift 33% broad market decline, but how quickly people forget that a new stock market high followed, along with nice Mandeville statement balances. Same thing this time – it is not different. The decline, whatever it ends up being, will be followed by a new market high at some point. Money is made over years in stock markets – not weeks and certainly not by timing. Patience and ownership in proven wonderful businesses pays off in spades. How else could you explain Berkshire Hathaway achieving a ~20% average annualized return since 1965 – despite the declines that occurred during COVID, the Global Financial Crisis, Tech Wreck, Black Monday etc. over the last 50 years. The incredible power of total return (dividends and appreciation in price) over time in stocks is truly marvelous. For those who simply give it the time required and keep their emotions from corroding the framework for investment success, the results are life changing.
We will certainly take this opportunity to invest at lower prices. If a popular store had a 25% off sale…most people would be there buying a depreciating item. Why not look at market downturns the same way and buy an appreciating item on sale instead. There are lots of great ones! The investment industry is the only one that witnesses people running when prices are marked down. I will never understand that. Life nor markets are linear like a GIC but both are still rewarding over time.
Wishing you good health, good prosperity and hoping that our paths will cross again!
Written By: Michael
