The Lato Letter: Volume 1, Issue 11.

The Lato Letter: Volume 1, Issue 11.

It has been a while since I have sent out a Hays Advisory commentary but given my recent two-week trip to Argentina and the title of yesterday’s issue, “It Takes Two to Tango in This Stock Market Dance”, I couldn’t resist sending it out.  This link will take you to the Don Hays Blog which summarizes his commentaries.

For the recent subscribers to The Lato Letter, Don Hays is a market strategist from Nashville, Tennessee that I have followed for over 15 years. Like all strategists and market prognosticators, Hays has been right many times but also wrong many times, but I do find his approach logical and rational and consistent with my approach to the market. He currently remains positive for the medium to longer term but expects some turbulence in the markets over the next few weeks as we digest the strong start to the year.

Speaking of my trip to Argentina, there was a bit of serendipity with respect to one of the places that we visited. I had just finished reading a new book titled “Abundance” by Peter Diamandes and Steven Kotler when we visited a series of wineries (one named Diamandes) in the Mendoza region of Argentina.

Unlike many popular views of the day, Abundance takes the stance that expected shortages of necessities like food, energy, and other materials will not occur in spite of a growing and more prosperous global population; the continued pace of technological advancements will create solutions to these problems that will allow for continued prosperity throughout the world. It is similar to Matt Ridley’s views in “The Rational Optimist” and in fact quotes Ridley’s book many times.

The serendipity occurred because this group of wineries that we visited were the creation of noted wine consultant, Michel Rolland. Rolland purchased several hectares of previously unusable scrub land that he was able to convert to usable land because of the technological advancements that have been made in irrigation systems and water supply. Hardly an essential element of life, nonetheless the use of this previously unusable land to grow food (in this case grapes for wine) clearly demonstrated the potential that we as humans have to ensure global prosperity for years to come.

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