Speculators should take note of the political unrest in Nicaragua.
When it started about a month ago, I’d hoped it would blow over. But now dozens have been killed, and the trouble shows no sign of going away. There are reports today that the Mormon Church has pulled its missionaries out of the country. I’m hearing through my network that other expats are starting to leave.
Not a good sign.
Of course, it might still blow over… but I wouldn’t want to risk it. I do not currently own shares in a company with substantial operations in Nicaragua, but I’ve written about the place before. If I were exposed to this risk, I’d probably sell now, even if I really liked the company. Best to get out of harm’s way. I could always buy back in again when the coast is clear—possibly at a lower price.
It’s a pity because Nicaragua is one of the poorest countries in the world. It could really use the wealth generated by modern mining. And the current government is supportive of the industry. But that same government is the focus of the unrest.
Don’t ignore the red flags.
