Econ Americas

Canadian financial markets offer a wide range of opportunities for global investors. In this podcast episode, investment analyst Ian Madsen explains why mining, oil, and gas stocks often diverge from US equities. In other words, they deliver low betas, which are helpful for diversifying a portfolio. Madsen also explains two strategic moments to buy mining stocks.

He shares lower-risk ways to gain exposure to mining assets and explains differences between the three major capital markets in Canada. Beyond commodities, Madsen highlights Canadian industries and companies that deserve fresh investor attention, including technology and manufacturing.

For more insights in finance and economic intelligence and exclusive updates, subscribe to the Econ Americas Substack.

Recommended Links

* Follow Ian Madsen on LinkedIn.

* Read Ian Madsen’s commentaries.

* Buy the book: Financial Sovereignty for Canadians.

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My emotions struck me during this show, since I care so much about Alberta sovereignty. To appear with Bruce Scholl of Unscrew the News and Nadine Wellwood, both people I admire, was a privilege, and I hope I provided momentum towards Alberta's noble cause.

Let me provide here my own show notes: takeaways and resources. There were many more than eight to share, so I recommend people watch the full show (starting six minutes in).

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* The path to a successful referendum cannot be rushed. There needs to be sufficient education and cultivated support before the vote.

* Albertans are profoundly distinct from Canadians (although Saskatchewanians are similar to Albertans). Insults hurled at Albertans, in an attempt to intimidate them, only demonstrate the fact that we are not the same. Although I was not raised in Alberta, Calgary is my family home on my mother's side, and it is where my grandmother and many other relatives remain.

* Bought-off regime media are not to be trusted. They are enemies of journalism and free thought, and we must continue to promote citizen journalism, such as Unscrew the News, and independent formal outlets such as the Western Standard.

* Alberta independence must be a broad movement and will have to go through one of the major parties. My personal view is the United Conservative Party, with the right membership, can be that vehicle. The People's Party and the Libertarian Party, although upholding great ideas, have demonstrated the nigh impossible task of starting a successful new party without wasting resources and creating more enemies.

* Ottawa loyalists will attempt to impose many roadblocks before the independence movement. These include throwing policy bones to soften sentiments, demonization via regime media and education, and overflowing the province with new arrivals to dilute support.

* The right to bear arms is a litmus test of self-rule. It is a policy that sets Albertans apart, since they have a strong sense that they should be able to defend themselves and not wait for momma government to save them.

* The referendum will succeed on provincial pride: the flag, the history, the shared values, the pioneer way of life. While the economic case for Alberta independence is overwhelming, the distinct identity will move hearts. An important case study is the Brexit campaign, which overcame the unwillingness of the UK political class to leave the European Union. The best book on this, that I know of, is All Out War: The Full Story of How Brexit Sank Britain’s Political Class.

* Albertans face two options: (1) remain straitjacketed in a parasitic Canada on the decline or (2) leave and forge their own path. The latter will stem from a rugged individualism that is alien to contemporary Canada. The Albertan psyche has a combination of classical liberalism, social conservatism, rural get-up-and-go, and entrepreneurial spirit.

There is robust intellectual backing for Alberta independence. In particular, I recommend following:

* the Haultain Research Institute;

* the Alberta Prosperity Project;

* Cory Morgan;

* Michael Wagner.

While I have only just started it, Nadine Wellwood's book, Alberta Rising, is now available on Amazon.ca and Amazon.com.

If you would like to book a consultation with me, please sign up here.

David Skarica, a Canadian financial advisor based in the Bahamas, shares insights from his latest book, Mega Returns: Profit from Maximum Pessimism. According to Skarica, assets surrounded by temporary negative sentiment often present good long-term opportunities. For instance, he purchased his house in 2011, “when no one wanted to buy a house after the housing bubble,” securing it at a low price.

Skarica's book covers many asset classes and also emphasizes the importance of investing in gold as a reliable store of value, especially in these uncertain times. He also explains how to target corporate bonds with put options as effective tools for managing financial risk.

When it comes to crypto, Skarica compares bitcoin to gold in terms of its function as a hedge—particularly in struggling economies. However, he cautions that bitcoin has in recent times mirrored the Nasdaq's performance. That trend could undermine its role as a safe haven. Regarding altcoins, he considers them high risk and largely unproductive as investment vehicles.

Buy the books:

* Mega Returns, David Skarica: https://amzn.to/4hiUIv5

* Financial Sovereignty for Canadians, Fergus Hodgson: https://econamericas.com/financial-sovereignty-canadians/

Buy Fergus Hodgson's "Financial Sovereignty for Canadians" on Amazon!: https://econamericas.com/financial-sovereignty-canadians/

In 2013, Canadian entrepreneur Gabriel Scheare moved to Valdivia, Chile, with an ambitious vision. His goal was to build an innovative real-estate project designed as a startup village for entrepreneurs. This became Fort Galt.In this podcast episode, he discusses how economic downturns, social unrest, and cultural resistance derailed the dream. Scheare argues that Latin America’s future relies on a cultural shift.Listen the full episode on Substack: https://econamericas.substack.com/p/what-became-of-fort-galt-chile

In 2013, Canadian entrepreneur Gabriel Scheare moved to Valdivia, Chile, with an ambitious vision. His goal was to build an innovative real-estate project designed as a startup village for entrepreneurs. This became Fort Galt.

Watch on YouTube | Listen on Spotify

By producing dark chocolate up with the highest quality in the world, Paccari Chocolate has brought stability and opportunity to more than 15,000 people in rural Ecuador. Cofounder Santiago Peralta shares how Paccari has built on direct, long-term partnerships with farmers. He pays them twice the market rate—AKA and efficiency wage—to ensure sustainability throughout the process.

Over the past 20 years, Paccari has released 70 flavors of dark chocolate, won more than 450 international awards, and expanded into products like healthy cereals and dairy-free ice cream. Although dark-chocolate production has increased around the world, Peralta says the biggest competitor remains ignorance: most people still choose chocolate from popular brands tied to harmful practices, such as the use of unhealthy ingredients or child labor.

Paccari, therefore, has not escalated only because of their quality. They have tied the farmers and their own story to the brand. The “Paccari Way” has earned global recognition from institutions like Harvard Business School and Technological Institute of Monterrey, and Forbes has praised the company for setting new ethical standards in business. As Peralta puts it, “You can be part of the problem or part of the solution. We have chosen to be part of the solution.”

Recommended Links

* Follow Santiago Peralta on X.

* Follow Paccari Chocolate on X.

* “Yusuf Amdani on Third-World Business: Build a Nation within a Nation” by Fergus Hodgson.

* World of Opportunity, by Yusuf Amdani.

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Buy the books:

- "Mega Returns", David Skarica: https://amzn.to/4hiUIv5- "Financial Sovereignty for Canadians" Fergus Hodgson: https://econamericas.com/financial-sovereignty-canadians/
David Skarica, a Canadian financial advisor based in the Bahamas, shares insights from his latest book, Mega Returns: Profit from Maximum Pessimism (available from today). According to Skarica, assets surrounded by temporary negative sentiment often present good long-term opportunities. For instance, he purchased his house in 2011, “when no one wanted to buy a house after the housing bubble,” securing it at a low price. Skarica's book covers many asset classes and also emphasizes the importance of investing in gold as a reliable store of value, especially in these uncertain times. He also explains how to target corporate bonds with put options as effective tools for managing financial risk.
When it comes to crypto, Skarica compares bitcoin to gold in terms of its function as a hedge—particularly in struggling economies. However, he cautions that bitcoin has in recent times mirrored the Nasdaq's performance. That trend could undermine its role as a safe haven. Regarding altcoins, he considers them high risk and largely unproductive as investment vehicles.

Zachary Yost—cohost of Radio Rothbard and a freelance writer—joins me to discuss the real state of the US economy. While some contend the United States is enjoying full employment, many data points tell a different story: employment and labour-market participation below pre-COVID-19 levels.

To compound the problem, easily half of all new jobs in the US economy, under the Joe Biden tenure, came from the public sector. Such jobs might deliver a paycheck, but they do not add much value. Further, they compound the problem of rising national debt and cement the new normal of elevated inflation. My preference would be to remove government spending from GDP calculations, as advocated recently by Peter St Onge.

Although I have followed Yost's work for a few years, a recent article by him caught my attention and compelled me to examine it in more detail. Although I do not agree with its entirety, it has many insights and is worth a read: “You're Gonna Have to Serve Somebody.”

Sponsor: Adrian Day's Global Analyst, one of my go-to sources for stock recommendations. Use the FERG coupon code for a 10 percent discount. You can also subscribe over the phone (410-224-8885) with the code.

In this episode, Yost delves into the challenges he has experienced personally, grappling with unsatisfying work and manual labor to survive: “All work has dignity in it, but the situation in which you’re working may not be a very dignified situation.” He addresses how to get out of major corporations and approach freelancing with an eye towards financial stability. We also touch upon open discrimination against straight white men—under the branding of diversity, equity, and inclusion—and how to respond to it: “Acknowledging that young men are facing rough waters right now is the first step … to gaining their trust.”

Links:

* Yost on X;

* Yost's Mises Institute archive;

* “The Tragedy of Great Power Dating”;

* the Yost Post.

Note: we recorded this in late January.

Michael Wagner, author of Time to Leave: Canada Cannot Be Fixed (2024), advocates independence for Alberta.

The province with both the Rockies and the Prairies contributes the lion’s share of Canada’s oil and natural-gas production, serving as a cornerstone of the national economy. A massive portion of the Alberta economy, however, is confiscated by the federal government in Ottawa to fund redistribution programs.

The chief reason behind the case for a sovereign Alberta is the structural impossibility of reform within Canada. This means that, no matter how distinct Alberta might be from the rest of Canada, there is no hope of an end to the pillaging and alien governance from Ottawa.

This is personal to me, because my mother grew up in Calgary, and her side of the family remain primarily in Alberta. Further, my personal belief is that a sovereign Alberta would a world leader for both next-generation governance and individual liberty.

That is why I devoted the last chapter of my book to Wexit. For this episode, of what I plan to be a monthly release, my sharp video editor helped me prepare a promotional clip for Financial Sovereignty for Canadians. If you have not already done so, please consider ordering a copy on Amazon.ca. If you are in the United States, you can order directly from me or get a copy from Amazon.com.

In addition to the above, I recommend The Sovereigntist's Handbook (2023) by Cory Morgan and Wagner's earlier book, No Other Option (2021).

Organizations mentioned:

* Alberta Prosperity Project;

* Frontier Centre for Public Policy;

* Haultain Research Institute;

* Western Standard.

Fergus Hodgson, CAIA, is director of Econ Americas and author of Financial Sovereignty for Canadians and The Latin America Red Pill. Book a personal consulting session with him and follow him on X, LinkedIn, and Telegram.