Pretend you’re going shopping for clothes.
As you walk down the street, you see two stores right next to each other.
One has a sign that says, “All clothes, priced 50% HIGHER than normal.”
The other store has a sign that says, “All clothes, priced 50% LOWER than normal.”
Which store do you go into?
Obviously, we all would go into the store that is having the 50% off sale. Not only is that the rational and smart thing to do, but the idea of ‘getting a deal’ is actually built into our instincts.
Humans always try to take the path of least resistance. Humans try to get as much reward for the least amount of work.
However… humans have this other horrible instinct… ‘herd mentality.’ When someone in our group runs one way, we usually try to follow them.
The problem with that is that we are humans… we’re not gazelle in Africa who are being hunted by cheetahs. Gazelle are safer together because they alert each other to run when there is a cheetah stalking them in the bushes.
This herd mentality that humans have is glaringly obvious right now in our stock market (and also in real estate and other assets).
As more and more of the human herd piles into assets that are getting more and more expensive, it’s only the early investors who’re seeing the biggest reward.
And… those early investors… who are they?
They are the ones who were going AGAINST the herd in the beginning. And then everyone else start to follow them.
That’s why I’m in Puerto Rico right now.
I’ll just say it bluntly: Puerto Rico is in big trouble. In addition to a mountain of debt, the US territory got slammed by two hurricanes several months ago. The second hurricane was one of the strongest hurricanes every recorded and it hit Puerto Rico square on.
But, can it get much worse for Puerto Rico?
Barring an asteroid coming from space and hitting the island, I think the island of over 3 million has hit rock bottom.
So, how can we take advantage of this opportunity?
That’s what I wanted to find out.
Yesterday, we took a flight around the island to see what was really going on.
On our way out from San Juan, we could see the freeways moving along just fine. While there is some visible damage in the city, everything seems to be running smoothly.
The scenery is drop dead stunning. In this photo you can see a waterfall and the surrounding trees. Notice how all the trees look kind of bare? All of their leaves were blown off.
The obvious signs of damage to homes from the air, were the blue roofs. Those are blue tarps that home owners have put on their homes to protect them from the rain. During the hurricane, many homes had their roofs blown off or severely damaged. Flying over the city and interior of the island, there were hundreds and hundreds of blue roofs. If you have a roofing business, you would be crazy not to look at Puerto Rico right now.
We landed on a mountain top in the interior of the island. You can see the debris from homes that were literally blown apart from the hurricane winds.
The home owner where we landed shows us what happened. He stayed at his home during the hurricane and said that he couldn’t describe what it was like… he said that no one would believe him and that it would be impossible to recreate the scene in a movie.
He then showed all the trees on his property that were still standing. Most had fallen over or been blown completely off the mountain.
They recorded wind speeds of over 200 MPH nearby his location!
Back where I am staying in San Juan, the beaches are almost empty. Tourism has completely fallen off a cliff, but the natural beauty is still there. Also, the beach was spotless clean, with a cleaning crew that combs the beach every morning.
Here is the view from where I am staying. Not bad, right?
I’ll be here in Puerto Rico for a couple more days, looking at some very exciting opportunities to invest in.
And in April, I’ll be coming back with the Explorer Partnership. If you’d like to join us, we are going to open the trip up to guests next week.
You can put your name on the waiting list now by emailing email@example.com
Just like all of our trips we WILL sell out. We have limited space. If you are curious about doing some legitimate boots-on-the-ground investigating into a very attractive investment opportunity, then this is it.
I’ll have more pictures and details later this week.