Chris Macintosh Blog | Why Would Any Sane Investor Even Look At This? | Talkmarkets - Page 2
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Baptized into the world of business and travel at a young age I’ve subsequently lived in multiple countries, traveled to many more and built myself a small fortune investing in businesses and markets that I spend an extraordinary amount of time doing due diligence on.

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Why Would Any Sane Investor Even Look At This?

Date: Saturday, December 17, 2016 12:58 PM EDT

I received a lot of thank you comments after sending that out but in the melee was one from a subscriber:

"This is disgusting. Politics is dirty and I prefer to invest in non-political investments. This isn't for me and I'm not sure I want to even read your stuff anymore"

Listen snowflake, there is no such thing as "non-political investments".

Maybe if you've grown up in a cotton wool environment, spoon-fed Barney the Dinosaur as a kid, which then morphed into Hollywood sitcoms as an adult, and your idea of a "tough" world is when some pimply faced middle class pot smoking teenager gets kicked of the stage at X Factor because he cracked under the pressure, then maybe this all makes sense. But if that's indeed the case you need to put down the scissors before you hurt yourself.

Politics matters. Deal with it. Understand it. Baseball has a hard ball. If you cock it up you get a black eye or worse. Actions have consequences. A reason not to play baseball? Hardly.

This deal is all about politics and far less about anything else. Yes, the economics matters in the long run, and fortunately it has sound math on its side here but trust me when I say that sound math on its own in opposition to political pressure rarely wins the day.

Fast forward to a meeting that just went down in Ulaanbaatar. CNBC just reported on it:

"The development of Tavan Tolgoi, which contains 7.4 billion ton of coking and thermal coal deposits and is largely untapped, hit a series of political and economic roadblocks over the past few years, but the July election of the Mongolian People's Party is expected to ease the way forward."

Political roadblocks? Hmmm...

And then this is what was written in the Insider alert:

"Adding insult to injury, the government owns the TT deposit and has consistently produced and sold coal for less than market prices, effectively undercutting MMC (Mongolian Mining Corporation) coal—while also creating a glut at the border and largely bankrupting the government's coal company (ETT) in the process. Mongolian Mining Corporation stopped production, but the government's ETT continues to produce at massive losses for no logical reason."
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