Meeting Minutes

We had a great time at our meeting!  Although we initially started on the discussion of some global financial and political issues, we certainly ended up on very different tangents!  In total, we had 6 members attend:

(From left to right) Andrew Whatley, Eric Chen, myself (VJ Arjan), Rolando Mestanza, Tommy Schultze, and Jeff Harrington. (Click on the picture to get a larger image)

Our meeting lasted nearly 3 hours and 45 minutes, I think that's the longest it's been yet.  We spent a good deal of time listening to Rolando talk about the financial and political situation in his home country, Peru as well as the rest of the Latin American countries.  We then discussed a little about what would occur if Obama is elected President.  And then we started talking about some really intriguing things and for a good deal of the time, Tommy Schultz, who has spent extensive amounts of time making a study of handwriting, analyzed each of our signatures as well as numerous those for other important figures.  It was lots of fun and I think we spent over an hour doing just that as it was so fascinating how much a signature can reveal about one’s inner character/personality.  As a result of the way this meeting went, I've decided not to limit the topics of conversation to economic, social, and geopolitical issues, but rather to just let it flow as it may.  I feel there is a time for all things, and so it may be for the discussions at these meetings also.

Latin America

Peru

Rolando spoke to us about the Peruvian economy, which is mostly mining gold, silver, and copper.  According to him, Peru is one of the largest miners and exporters of these metals.  Grupo Mexico, the largest mining corporation in Mexico and the third largest copper producer in the world, has been buying up copper ores in Peru.  The Free-Trade Agreements between Latin American counties and America is leading to the outsourcing of American jobs and the outflow of money to poor laborours in Latin American countries.  This is a godsend for most people in these countries who are being kept poor by a ruling elite that is hoarding the wealth. 

Chile

Rolando considers Chile the most advanced of the Latin American counties.  They have privatized retirement funds there, to the point where it comprises 50% of the stock markets.  He noted that President Bush wanted to implement something similar here in the US, but his plan was struck down by both houses.

Venezuela

Since Chavez has taken control, oil production has declined 20%.  The nationalized oil company is now an enormous conglomerate that produces everything from furniture to foodstuffs.  Chavez has implemented a cunning policy there; although he states that he wants to free the Venezuelan worker from the clasp of the ruling elite, he is not providing direct aid to them to help them rise financially.  Instead, he has opened a series of comedars (eating places), where he literally gives away food to the masses.  However, it may be wise to remember the old proverb: feed a man a fish and he is fed for the day; teach him how to fish and he is fed for life.  Chavez wants the keep the people dependent upon him, so that when he decides to abolish the current constitution, which has already tried to once, he will have the willing support of the people.

America

Subprime Continued…

We joked today that Bank of America has become the corporate motto for all companies.  (Merrill) LYNCH (Bank of) AMERICA COUNTRYWIDE!  But seriously, there is outright favouritism going on here.  Essentially the Fed has given the largest banks funds to start buying up the smaller/weaker ones.  Chase, Bank of America and Citigroup are simply too big to fail.  Interestingly, however, the $50 billion provided by the Fed to these banks to start initiating money into the system via loans is going strangely enough to paying out executive bonuses.  In fact, Jeff Harrington noted that $20 billion of the original $50 billion has already gone out in this way.  So much for helping the American people…

Social Security

“Welfare is the Hugo Chavez of the Democrats!” – Jeff Harrington

There seems no way out of the Social Security debacle if the Democrats control all three seats of office (President, House, Senate).  Obviously, if Obama is elected, he will not be able to deliver on all he is promising – no candidate, historically, has every done so.  But if he diligently executes what he has proposed then we will become like Germany, Italy, and Britain, where the government takes on a more dominant role and oftentimes a not-so-efficient one.  Taxes will increase to European levels.

United States v. Tobacco Companies

In 1999, the United States government sued the major tobacco companies for promoting their product while deliberately knowing that nicotine was an addictive substance.  I explained how I saw on C-SPAN History that none of the corporate executives and CEOs of these tobacco firms would admit that nicotine was addictive.  Tommy Schultz then brought up the power of underground marketing.  I admit that I had not known such a method existed.  In essence, it can be a waitress at a restaurant that suggests a certain product, or a pile of boxes in front of a store with a logo that is paid for by companies to promote their product.  This is how the tobacco companies remained profitable while information was publicly available (Surgeon General 1960s) that deemed smoking deleterious and addictive.

If Obama Wins…

In reference to the stock market, if Obama wins:

·         Alternative energy stocks will rise

·         Pour-it or weld-it commodities (concrete, steel, etc.) will rise

·         Oil stocks will rise (many oil companies own alternative energy patents; this will make the   Middle East become dependent upon us, as opposed to the way things are right now.  For example, think if a patent exists on a certain technology that will yield 300 miles per           gallon.)

·         Auto companies will rise (Democrats will support the unions and will, in turn, have to keep the auto companies afloat to do this)

Marriage Paradigm

Most people who practiced marriage in the past had a life expectancy that oftentimes did not reach past 30 years.  The common complaint from those who divorce after decades of marriage is that the other person has changed, etc.  Tommy explained his contention that relationships have become expendable, while before they were perhaps tolerable and held together by a sense of duty or responsibility. Add on top that that many women have built within a biological imperative to be attracted to more aggressive men, the exact trait that does not lend stability and constancy needed in a long-term relationship.  Tommy brought up the practice in the army unofficially termed Army Key Parties.  As those in the army are away from their spouses months at a stretch and know that this gives the other a chance at fooling around, many have decided to knowingly let this occur with other fellow army officers whom they might trust.  Here's what happens.  Let's say army officer Tom from Little Rock, Arkansas has a spouse Amy, and Tom is stationed in Iraq for the next two years.  Well let's assume that back home in Little Rock, he has a few friends that trained with him.  Well Tom would arrange a Key Party at a hotel where these officers would select a key to rooms where various partners of officers overseas are waiting, etc.  It certainly is a unique way to solve a problem and one that I was not aware of at all.  It is conceivable that as relationships become more and more expendable, the concept of marriage could break down completely.  We did not delve into what would take its place.

A Study Of Handwriting

Tommy Schultz explained for more than an hour his lifelong hobby of studying a person’s signature to elicit the personality.  He stated that people’s character traits are naturally and unconsciously expressed through one’s writing, a means of communication.  As there was so much information, I’ve decided not to detail it all as it would take too much time.  I may update this further in the future if and when I have some time, but all I would suggest is to come to the next meeting and ask Tommy yourself to assess your signatures.  His analysis of our signatures was spot on, I believe, and we all very much enjoyed comparing our signatures with each other and analyzing the signatures on the US dollar bills, etc (John Snow, Henry Paulson).  

Simulated Portfolio

I’ve decided to put together an investment portfolio based on suggestions from members in previous meetings and post it online for you all to see how it is doing.  The contention so far is in favour of international ETFs and commodity stocks.  You all are free to submit any suggestions, however, I cannot guarantee any of them will be used.  Email your suggestions to vj_arjan@yahoo.com. So, here it goes!

Date	Security	Entry	Profit/Loss
October 31, 2008	FXI (iShares FTSE/Xinhua China 25 Index	$25.16	$0
October 31, 2008	ILF(iShares S&P Latin America 40 Index)	$26.60	$0
October 31, 2008	EWZ(iShares MSCI Brazil Index)	$37.69	$0
October 31, 2008	PBJ(PowerShares Dynamic Food & Beverage)	$13.27	$0
October 31, 2008	GUR (SPDR S&P Emerging Europe)	$29.74	$0
October 31, 2008	FCX (Freeport-McMoRan Copper & Gold Inc.)	$29.06	$0
October 31, 2008	WLT (Walter Industries – metallurgical coal)	$38.75	$0
October 31, 2008	RIO (Companhia Vale do Rio Doce – gold mining)	$13.12	$0
October 31, 2008	GVA (Granite Construction Inc.)	$35.67	$0
October 31, 2008	MT (Arcelor-Mittal ADR)	$26.25	$0

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My hope is that you may benefit by some of this, and that it may help you develop or further enhance your perspective of the way the world is! Let me know if you’d like to receive an invitation to the next meeting, which will be the Sunday after next, November 16th. I will send out the invitations and details close to a week in advance.

Thank you all and I hope you all have a great week ahead of you!