• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 11 mins COVID 19 May Be Less Deadly Than Flu Study Finds
  • 33 mins Would bashing China solve all the problems of the United States
  • 4 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 1 hour Model 3 cheaper to buy than BMW 3 series.
  • 6 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 1 hour Let’s Try This....
  • 7 mins Incompetent "Journalists"
  • 11 mins Iran's first oil tanker has arrived near Venezuela
  • 6 hours HVDC Cheaper Than Low-carbon Natural Gas
  • 47 mins Pompeo's Hong Kong
  • 6 hours Oil and Gas After COVID-19
  • 11 hours 60 mph electric mopeds
  • 11 hours China to Impose Dictatorship on Hong Kong
  • 11 hours Nothing can shake AMLO’s fossil-fuel fixation
Did Venezuela Just Default?

Did Venezuela Just Default?

S&P Global Ratings declared Venezuela…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Premium Content

Why Can’t We Be More Like Chile?

I just want to pass on some data forwarded to me from my extensive band of Chilean readers in response to my recent piece, “Chile is Looking Hot” (click here for the piece).

In 2007, the government dissolved the old Copper Stabilization Fund and rolled windfall profits from sales of the red metal into a sovereign wealth fund called the Economic and Social Stabilization Fund.

Today that fund has $11.7 billion, a lot for a small country like Chile, which only has a GDP of $161 billion and a population of 17 million. The fund will be used to increase government spending during economic downturns, thus eliminating the need for any borrowing during times of distress.

This is one of the reasons why the Chilean ETF (ECH) never sold off in the wake of the massive 8.8 magnitude earthquake that struck in February. I had hoped to use the natural disaster to gain a good entry point to the country, to no avail. Imagine that!

Counter cyclical Keynesian spending financed out of savings, instead of debt. Too bad they didn’t think about that here!

If I’ve piqued your fancy, another way to play Chile is to buy the copper industry ETF (CU), which has extensive holdings in this incredible well managed country.

Since I recommended Chile only two weeks ago, the ETF has risen by 5% during otherwise dismal global trading conditions. And my American Chilean readers, who thank the heavens the day they decided to retire there, also recommend long positions in the country’s outstanding wines, including a mature Viña Almaviva, a Carmin de Peumo, and a Viña Concha y Toro.

Chile Index Fund

By. Mad Hedge Fund Trader


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News