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2014/12/27

Obama, Castro and the Pope Walk Into a Bar…

Sovereign Investor Daily

Obama, Castro and the Pope Walk Into a Bar…

By Jocelynn Smith, Sr. Managing Editor

Albert Einstein was said to have once defined insanity as "doing the same thing over and over again and expecting different results."

After 54 years of upholding a trade embargo against Cuba, President Obama has declared that it's time for the United States to try a new tactic in hopes of improving human rights on the small island just 90 miles south of Florida.

Following 18 months of secret talks, helped along by Pope Francis, Cuba and America conducted a prisoner swap. In addition, the U.S. has agreed to ease restrictions on financial transactions, travel and banking, while Cuba will allow more Internet and release 53 political prisoners.

Obama is also pushing for an end of the trade embargo, but he will have to win the agreement of Congress to achieve that and it looks like the president is in for a fight. There are many skeptics of the recent deal and whether full diplomatic relations with Cuba will actually improve human rights on the island. Cuba has full diplomatic relations with most countries of the world and that has done nothing to improve the quality of life for Cubans.

This widely unexpected development between Cuba and America has left more questions than answers. Will the trade embargo finally end? Will human rights in Cuba finally improve? Will communism fall in Cuba? Will Cuba become the next hot cruise destination?

The only thing we can confidently say is that a new uncertainty and a chance for increased volatility has entered our world — right off the coast of the United States. Not only is there going to be a new flood of American dollars washing over the tiny island as restrictions are lifted, but Raúl Castro is also entering a political transition period — the man is in his 80s and isn't likely to be ruling Cuba with an iron fist for much longer.

As these potential changes sweep through Cuba and impact America, we at The Sovereign Society will continue to look for opportunities for you to protect and grow your wealth.

Regards,


Jocelynn Smith,
Sr. Managing Editor, Sovereign Investor Daily

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Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and should not be considered personalized investment advice. Therefore, you should not base investment decisions solely on what you read here. It's your money and your responsibility. Certain investments such as futures, options, and currency trading carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. CFTC Rule 4.41 - These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading and may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. Past results of any individual or trading strategy published by the Sovereign Society are not indicative of future returns by that individual or strategy, and are not indicative of future returns which could be realized by you.

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