Today, we'd like to give a big kudos to Casey Research and their work on Colombia…
To make extraordinary investment returns, you've got to be willing to put your money in investments the average investor avoids. This can simply mean buying out-of-favor assets. It can also mean investing in countries like Colombia.
As our friend Andrey Dashkov of Casey Research noted in the March 6, 2010 DailyWealth, Colombia is shedding its reputation as a dangerous drug haven to become one of the world's hot spots for natural resource investment. Although it's far from U.S. levels of safety and security, Colombia is reducing crime and adopting free-market measures… which are helping the country go from "bad to less bad" in the eyes of investors.
You can read more about this "bad to less bad" situation in Casey's Energy Report. For a picture of it, we look at the past year's trading of the Global X/Inter Bolsa FTSE Colombia 20 Fund (GXG). This fund is one of the few pure Columbia plays available to U.S. investors. Its major weightings are in Colombia's large oil and banking concerns.
As you can see from the chart, GXG is enjoying a tremendous uptrend… and has gained 35% in this year alone. This is a major adjustment of investor attitudes toward what some used to call the world's largest "narco-democracy."
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