Editorial Note: The Southern province is a jewel, with much still waiting to be discovered. We hope this issue helps you to discover a little something that maybe you didn’t know. I also would like to thank all those who made submissions for this edition, so many in fact that some have to be held over for the upcoming publications. I am especially happy to see so many members interested in submitting articles, and for all of you, please be aware that I really do appreciate your input. For this time I would like to thank Jan Yatsko and Richard Leatherman for their contributions, and of course Ana who continues to assist me with her skills. We hope you enjoy this one. - Ryan Piercy
Remember, cedula renewals began again July 1st, 2007... call for an appointment.
This magazine has been published every two months for 10 years as the official communications media of the Association of Residents of Costa Rica. Our organization provides service to thousands of foreigners who have chosen Costa Rica to reside for short periods or for permanent residence. Since 1984 the Association of Residents of Costa Rica has been offering reliable SERVICES, INFORMATION and ADVOCACY to Costa Rica’s foreign residents. We have the experience and ability to help you with your residency application, immigration, business and financial management, real estate purchases and rentals, property management, insurance, pet importation and much more. If you wish to place an ad in El Residente, please contact the ARCR main office.
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Presidents Repor t by Earl Tomlinson
AS PROMISED.... I will begin this page with Bob Miller’s message. After I will tag on some information about current events for you edification. The page is all yours, Robert. Former President’s Report Now that I am back in God’s Country... Now that in itself is a questionable statement. Is it God’s country because it is so desirable? Or because no one else wants it. It cannot be the latter. Does the oil and tar sands or the uranium ore make it desirable? Of course not, it is the loveable people like me.
you keep the Chilean wine?” Now I find Chilean wine tasteful and reasonably priced. The staff and customers all looked at me strangely and I realized that I had said something improper. The salesperson whom I had addressed pointed (obviously irritated) to a far corner. I realized at that moment that I was declared persona non grata. I took the wine and sneaked out with every-one pointing at me. Now when I buy my wine I wear dark sunglasses and a raincoat. They know it is me, because I’m the only one who buys the Chilean wine. Before I say anything more that will cause the government to declare me persona non grata I will now say things that will get me ingratiated into the good will of my neighbors and people of Oliver.
Well anywho, I will continue without anymore BS. Here we are Elsa and I are back in Canada, and we are living in Oliver, British Columbia. This is a city of thirty-five hundred people, and is about forty-five miles from the big city of Penticton. Originally we thought of returning to West Vancouver a suburb of Vancouver, which is about four hundred miles from here. However, the house we sold for about $350,000, which we thought was a fair price at the time is now over $3,000,000. So here we are in Oliver. Oliver is called the wine capital of Canada, now I never knew that, but it is impressed in my mind now and I will tell you why. Everybody and his brother or sister has a wine press or use their feet to make vino. The government runs liquor stores in Canada. In this case the provincial government.
When walking down the streets of Oliver people smile at you and greet you with a “Hi” or a “Good morning”. The skies are clear. There is no smog or car fumes. When you get to a corner to cross the street, the traffic stops. There are no police to stop traffic. The cars stop! The first time that happened to me I hesitated. I remembered traffic in San Jose. The car driver looked at me when I hesitated and realizing that I was a stranger, smiled at me and said, “ It’s your turn”. What a surprise that was. I can also keep my wallet in my pant’s hip pocket without worrying that I will be relieved of it. My problems in Oliver are of my own making. I used to run in San Antonio for my exercise. I figured that I would do the same in Oliver. This is a very hilly country and there are may gravel roads. Well anyway I am running to the Post Office to pick up
So I go into the one in Oliver (the only one) and I ask, “where do
Continued on page 4...
Cover Collage Province 6-Puntarenas: The sixth province, Puntarenas, lays in the south of Costa Rica and along up the Pacific Coast. Isla de Coco, located some 532 km offshore, also pertains to this province. The name Puntarenas was derived circa 1720, with the arival of the pirate, Chipperton, to the gulf of Nicoya. The documents from this expedition relate to departure from the Punta de Arenas, given to the small extension projecting into the sea. The province itself covers over 11,000 km2, and is known for its National Parks, nature studies both on and offshore, San Isidro, Golfito, Caño Island, and also the mysterious Stone Spheres of the Diquis Delta.
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my mail. Oliver has no mail delivery. The residents pick it up at their P.O. box in the Post Office. KA-BOOM I slipped on the gravel road and fell face down into the road. I figured I had some scratches, but when I got into the post office, I saw my face in the washroom. I was a mess Blood and scratches all over. Well after a week at home taking it easy, I now exercise in the house. Plumbers, electricians and tradesmen are not available in Oliver. They go to the Alberta Tar and Oil Sand fields where they get over $25 an hour plus all the overtime they want. Well our bathroom sink stopper gets loused up so I try to climb in under the sink to do some adjusting. It was cramping and I could hardly move, but after an hour I managed to repair what should have taken ten minutes. I fixed it. When I finally managed to extricate myself get up. I couldn’t move. The Doctor said I tore some ligaments. Well anywho that was a week ago. I can now walk again reasonably well thanks to Tylenol. The only thing left for me to do now is say how much I miss the people I worked with at the ARCR and wish the staff and all members of the RESIDENTS ASSOCIATION nothing but the best. - Robert Miller
El Residente
Thanks Bob for the update on your experiences of moving and living in Canada. We miss you and know that ARCR will always be grateful for all you have done for the organization. Speaking of ARCR, as a result or my last article in the El Residenta, a donor gave our Charity fund $150.00. Thank you David G. Sabo for you contribution. We welcome all contributions. Your gift can make a difference in some child or families life. Another form of giving is buying tickets for our quarterly raffle. The next one is scheduled for the end of July. We have many prizes, donated by local merchants, and the cost is only 1,000 colones for each ticket or 10,000 colones for a booklet of 10. There are posters on the walls of ARCR that list all the prizes. You do not have to be present to win. See one of our staff at ARCR for details as well as information about all the agencies that we have helped since the inception of the ARCR charity fund. By the way thanks to Bob Miller who helped create this Fund. One last note about our Board’s current activities. We are working on a project to provide discounts for our ARCR members at some local restaurants. We are also the host, with the participation of the Canadian Club, of the dinner dance this year. Please keep December 8th open on your colander. Same location as last year, the Cariari Hotel. Thanks again for taking the time to read this message and thanks again to Bob Miller for his input. - Earl Tomlinson
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Association of Residents of Costa Rica ARCR CHARITY RAFFLES We are continuing to raise funds with our ongoing charity raffles, and need your collaboration. Tickets are just ¢1000 offering prizes worth hundreds of dollars. Please assist by purchasing one, or if you can help us sell, we are always in need of assistance. website: www.arcr.net Alcoholics Anonymous Groups meet daily throughout the country; times and places change frequently. Call for up-to-date information. San José 222-1880 (Anchor club, also serves Narcotics Anonymous) Av 6 Calle 1, 2nd floor Maryland Building. Heredia (Laura) 267-7466, Puerto Viejo Limon 750-0080, Zancudo 776-0012, Tamarindo 653-0897, Flamingo (Don) 654-4902, Manuel Antonio (Jennifer) 777-1548, Jacó (Nancy) 637-8824, Zoo Group Escazu 293-4322. Al-Anon Meetings Al-Anon Family Group is for all family and friends of Alcoholics. For information in English, please call Martha 483-1275 or Sandy 266-1061; For Spanish please call Christine 840-4658 American Legion Post 16 All veterans are welcome. Meetings are the second Tuesday of the month at Hotel America in Heredia. Contact Post Commander Jim Young or Post Adjutant Ken Johnson at 591-1695. Bird Watching Club The Birding Club of Costa Rica sponsors monthly trips to observe local and migrant birds in various areas of the country. For more information contact us at 282-5365 or at costaricabirdin g@hotmail.com Canadian Club (ACCR) A group open to all Canadians and thier families. Check out our website to find out more. website: www.canadianclubcr.com Democrats Abroad Democrats Abroad meets on the last Saturday of every month at the Aurola Holiday Inn, San Jose. Contact Paul Kloes, 228-8260, e-mail cr.democratsabroad@yahoo.com or visit our website at cr.democratsabroad.org. Register to vote absentee at VoteFromAbroad.org! Little Theatre Group LTG is the oldest continuously running English-language theatre in Central or South America. The group currently puts on a minimum of four productions a year offering a choice of modern, classic, serious, and farcical plays. Continuing in the tradition of its founders, LTG regularly donates to charity, sponsors school drama festivals, trains new directors, and takes productions on the road to the more remote areas of the country. The group’s monthly social meetings are held in the theatre on the first Monday of the month from 7p.m. to 9 p.m. and everyone is welcome. Membership costs C 4,000 per person or C7, 000 per family. Also, earn your Wings, become an LTG Angel. For more information Call the LTG Box Office 355-1623 or www.littletheatr egroup.org Newcomer’s Club A women’s social organization that meets the 1st Tuesday of each month. We welcome English speaking women who reside
July-August, 2007
Send us your club news or activities for free publication in this column in Costa Rica. New and long term residents-contact Nancy 4166165 or newcomerscr@yahoo.com PC Club of Costa Rica This computer Club meets on the third Saturday of each month at Pan American school, in Belen, 830 to 11:30 am 2 months Free Trial for newcomers. For information call Chuck Jennings. Phone 266-0123 www.pcclub.net Republican’s Abroad The Republicans Abroad of Costa Rica meets the second Tuesday of each month. Contact Francis 203-6131, or or fax 282-2150. Radio control Sailing Club Meets at Sabana Park Lake. For information contact Walter Bibb. Wwbbsurf40@yahoo.com Tambor Gringos and Important Friends T.G.I.F. T.G.I.F. is a small social club open to those who speak English, including Costa Ricans, in and around the town of Tambor on the Nicoya Peninsula. Members meet at 9:00 a.m. the first Friday of every month at the Beachcomber Bar and Grill in Tambor. The meetings are very casual and provide a forum for exchanging ideas about life in Costa Rica. For more information contact rzldzll@earthlink.net Wine Club of Costa Rica Please mark your calendars The wine club usually meets at 1 P.M. on the last Sunday of each month. Join us to tantalize your taste buds and expand your education. For more information on upcoming events please contact us Phone 279-8927, 257-2223 Women’s Club of Costa Rica Founded in 1940. The Women’s Club of Costa Rica is one of the oldest, continuously operating service clubs in the country. The name has changed in 63 years, but our motto “friendship and service” has remained the same,. An English-speaking organization, our club has approximately 350 members, originating from over 30 countries. Please join and help us to continue to grow. Remember that you can contact us or keep in touch through our website www.wccr.org Women’s International League for Peace and Freedom (open to men too) Bilingual group meets in Heredia on the first Wednesday of the month at 10 a.m. in the clinic of Mireya Gonzalez. We work on peace and human rights issues. Call Mitzi 433-7078 or write peacewomen@gmail.com Young Expats of Costa Rica Some Expatriates under the age of 40, and currently living in Costa Rica, have formed a new social club to be coordinated through their website This club will help younger expatriates living in, or moving to, Costa Rica meet other expats in their age group for; friendship, romance, travel and activity partners, and professional networking. www.YoungExpatsOfCostaRica.org
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Wild Side
XX XXVIIII
by Ryan Piercy
Beaked Whale Just as Guanacaste brings to mind beaches, Puntarenas causes me to think of the vast ocean. Perhaps because of the port, or the Isla de Coco, or maybe just the number of persons I have met who came to study ocean life in the zone.
aside from subtle colour variations, size, shape of the head, and length of the beak. Of course if you do see one in local waters, it will probably be a Cuvier’s. Due to their isolation from humans, human impact seemed to be distant. However newer studies, made from beached specimens, show higher content of toxins, combined with more deep-sea fishing which more frequently catches them within the nets, causing drowning. In fact because of their remoteness, a few of these species currently are only known through the study of remains and have never been sighted alive. One must hope that human damage won’t extend so badly as to cause their extinction, leaving this as the only method for further study.
Whatever the reason, when it comes to the Deep Blue of Costa Rica, no other mammal can know its depths better than the Beaked Whale. Ziphius cavirostris, Cuvier’s Beaked Whale, is the one species some 21 in the family (currently known) that can be found in local waters. It is also presumed that a second species, Blainville’s Beaked Whale, is likely present. They are the second largest family of Cetaceans, and one of the first groups to diverge from the ancestral lineage. In fact the earliest known fossils date back to the Miocene, some 20 million years ago. The beaked whale is most interesting, having several characteristics that distinguish it from other members of this order, such as suction feeding. The Beaked Whale does not catch prey with its teeth, but instead ‘sucks’ it up into its orifice. This is accomplished by the retraction of their tongue while simultaneously distending the gular floor. In this instant the pressure drops in their mouth, sucking in the victims. Because of this feeding method, they are believed to feed on or near the ocean floor, and at very great depths. In fact they are known to be the deepest diving air-breathing mammals, reaching recorded depths of 1899 meters, 6230 feet! And that for up to 85 minutes at a time. Due to this remote habitat of great depths, Beaked Whales are difficult to observe, thus relatively little is known of most species. Those that are better known range in size from 3.5 to 13 metres, and can weigh from 1 to 15 tons. They are found in most oceans, tending to avoid shallow waters and congregating in small families. They are also very difficult to distinguish in the wild, as there is little to tell them apart
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July-August, 2007
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Rural Life
large groups of children with behavioral disorder problems, valuable lessons from her organic garden such as hard work, perseverance, patience and commitment.
by Ana Hernandez
Enterprising Rural FamiliesTabarcia de Mora Finding jobs where there is almost no work is always difficult. This is true for people living in rural communities where unemployment figures are higher than in progressive suburban areas and the reason why many people in rural zones are considering alternative ways to making a living near home. I recently worked for a week as a volunteer with a group of neighbors committed to self-sustainable projects in the communities of Tabarcia and Corralar de Mora, about 35 kilometers southwest of San José. They call themselves “Enterprising Families” or “Familias Emprendedoras,” in Spanish. They work not as individuals but as men and women bound together by the goal of supplementing their incomes and dedicating more time to their own families.
Maritza, a young mother of a four year old girl, has one of the longest working shifts of all of the entrepreneurial families in Tabarcia. She left work in the city shortly after she got married and started to look for ways to help bring money to the household. She had inherited a goat from her motherin-law and pretty soon people started to come to her door The natural richness of their surroundings is truly amazing: asking for goat milk. She got the idea of getting a few more a plus to attract visitors and volunteers interested in the kind goats and then people asked her for goat cheese and even of work they do. Green and lush year round, with the busy homemade ice cream made with goat milk. singing of birds and abundant vegetation in their backyard, Her farm at the back of the house has around sixty goats now they have the productive environment that motivates people and Maritza single-handedly milks her goats at the crack of to get in touch with the land. dawn and again in mid-afternoon. Her brother-in-law helps And going back to the land is what they have done. Rebeca her with the feeding of the goats with food pellets and cuts Chaves, a founding member and the group’s “cheerleader,” is of sugar cane, while Maritza’s husband supplies businesses in her forties. A former police officer working as an instructor with their products. with DARE, (Drug Awareness Education Program,) she is Their enterprise is a small family business. She and her downright energetic. husband worked on obtaining the permits to formalize their She has converted the big backyard of her house into an company called CAPRINOLAC S.A. and have been able to area designed for organic gardening. Learning the basics place their unique products in supermarkets such as Mas X about permaculture has not been easy for her and her family. Menos and Auto Mercado. Their products taste very yummy They had success growing tomatoes and a large variety of without a strong odor or taste. They sell goat milk, a creamy peppers that were protected by fences, but the rows of new white cheese, a delicious cheese spiced up with herbs, and vegetables she and volunteers planted directly on the soil a delightful yogurt that comes in two flavors: guanabana and were flattened by the chickens running around free on their strawberry. patio. Maritza and her husband had to learn the ropes of their selfEfforts to keep the chickens out led them to consider an sustainable project from scratch. Learning the legalities of aerial platform for growing vegetables using some large obtaining permits from the Health Ministry, coming up with discarded metal gates raised on legs and lined up with thick nice labels, choosing a logo to market their products and the plastic. The long bed was then covered with a healthy layer final step of supermarket distribution, has turned out to be of soil and various types of lettuces, carrots, onions, and so very demanding of their time. on, that now grow on it. Health regulations required them to invest in a modern Assisted by students from Peace University in nearby cooling room and a separate area free of germs where Ciudad Colón, Rebeca and her family got interested in to homogenize the milk and to produce their yogurt, a teaching other people about their permaculture project. They painstakingly slow process. They use large stainless use organic leftovers to feed earthworms that in turn help steal cylinders they keep at high temperatures for the produce good soil to grow their vegetables. With this type of homogenization process. Maritza somehow finds the time for milking the goats, homogenizing the milk, making cheeses, approach to agriculture, nothing goes to waste. ice cream and yogurt, while raising a young daughter. She Rebeca uses motivational DARE techniques to teach Continued on page 9...
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knows that all of this work seems too much at times, but she and even a very antique dusting machine used at the turn of is grateful that both she and her husband have been able to the century to dust pesticides in the fields, and much more come up with steady work while raising a family at home. paraphernalia he will gladly describes to his guests. In addition to the sugar mill, don José has been diligently working on a reforestation project on approximately 12 hectares of land, formerly used for pasture, he purchased a few years ago. He named his ecological project “Valle de las Aguas” or Water Valley, because that is what Tabarcia means in Indigenous language. He and his family used the land for a while as a motorcross field for recreational purposes for the community, but don José quickly realized that the practice of the sport was bringing in noise pollution, deforestation and soil erosion. He is convinced now that he is protecting precious resources such as water and pure air for future generations through his reforestation efforts. Diego is a veterinarian in his forties. He is tall and a bit chubby, originally from the town of Tabarcia and he LOVES animals. “The more animals, the merrier,” says he. A modern Old Mac Donald, he has brought to his 10 hectare farm as many pigs, rabbits, sheep, chickens and cattle as he has been able to. He even found a male companion for his female water buffalo and ever since the two lovers have been raising heck at the farm. The female has been unmanageable during her amorous spells and the male has lost one of his horns chasing after her. In spite of these antics, they are Diego’s pride and joy.
The reforested land claims an extensive area that snakes above the awesome looking valley, surrounded by a magnificent view of woods and mountains with many species of birds and small mammals living there. A small river and fresh water springs are down below in the valley. There are several walking trails adorned with colorful ornamental plants and the trees and saplings thriving nowadays in his reforested area are species native to the area and others in danger of extinction.
A visitor can admire this dreamy landscape from a big rancho made of wood built in the same premises. The He is keeping up with his farm despite his regular job as a rancho is being used by the community, school children and veterinarian, because he would like for children who have universities for several activities such as get-togethers and never been in contact with animals to have a place to visit educational workshops. and learn about them. Because he loves sharing all of his good fortune with others, In addition to the school children he hopes to open his don José is recognized as an important community leader. well-maintained farm to groups of guests from the city. That is one of the reasons why “Familias Emprendedoras” He envisions groups of tourists or students from overseas was happy to have him as one of their members. visiting and enjoying his farm. He knows that many foreigners from big cities rarely have the chance to see farm animals up close and this can be a nice opportunity for them to look at them, pet them and be photographed with them. Don José, or Pepillo as neighbors know him, is the oldest of the group. He is in his late fifties and is a long-term resident of the Tabarcia countryside. His father and his grandfather left him as inheritance a sugar mill and a deep love for nature. The sugar mill is unique because it is run by water using a large water wheel, similar to the kind that powers wheel-paddle boats; making it not just different, but one of the oldest sugar mills powered by water still functioning. Don José sets up the mill’s complex mechanism when he receives groups of people interested in seeing how the mill runs. He tells visitors about the ways in which his grandfather and later on his father efficiently ran the mill using very antique machinery. He is so proud of his family’s ancestry that he has opened a little museum not far from his house so he can show friends and visitors the collection of very old tools he has kept. Among his precious memorabilia there is a cattle marking tool with the family’s distinctive logo in the form of a small boot, a sword his grandfather had worn like the one used by musketeers. Duels were not uncommon in those years. He has on display an old wood mill saw blade
July-August, 2007
If interested in any of the projects of the rural enterprising families described above or if you would like to contact them for group tours, please write to the following e-mails: labriegos@gmail.com familiasemprendedoras@gmail.com Rebeca Chaves, Organizer Tel. 506-418-8281 For English you can contact me, Ana at 506-268-3871.
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Learning The Language e by Christopher Howard
More Improving Your Spanish Pronunciation In our last article I talked about how to pronounce the five basic vowel sounds correctly in Spanish so that your Spanish accent would not sound so typically ‘gringo’. This week I want to give you some other tips you can use for improving your Spanish accent. Most consonants, or letters that are not vowels, are pronounced the same in Spanish as they are in English with only a few exceptions. Here are some unusual consonant sounds that might give you some trouble: 1. The double ‘ll’ and the ‘y’ are both pronounce exactly the same in Spanish. Just like the ‘y’ in the word yes in English. Try saying these words: lluvia, yunta. 2. This ‘ñ’ is pronounced like the ‘ny’ in the word canyon in English. Try saying the word señor. 3. The ‘v’ is pronounced just like the letter ‘b’ in the English word book. 4. The ‘z’ is pronounced just like the English ‘s’. Try saying zapo. 5. The ‘j’ is pronounced just as the ‘h’ in English. Try saying the name Jose this way. 6. The ‘g’ before the vowels a, o, or u is pronounced like the ‘g’ in the word got in English. Try saying gafas this way. 7. The ‘g’ placed before the vowels e or i is pronounced like the ‘h’ in the English word hat. Try saying gente in Spanish. 8. The double ‘rr’ is the toughest for many, as it is trilled or vibrated. A single ‘r’ at the beginning of a word is pronounced the same way. Try to roll your r’s in the words burro and rico. 9. Finally, a single ’r’ between two vowels is pronounced like the ‘d’ in English. Try saying the following words in Spanish: caro, para, muro. Here is your Costa Rican expression or tiquismo for this week: “Harina” literally means ‘flour’, but in Costa Rican slang it is often used to denote money.
El Residente
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A Journey Past by Ryan Piercy
Great Balls of Mystery As this issue focuses on Puntarenas, I thought it appropriate to use this issue to talk about one of the countries greatest mysteries, the Stone Spheres of the Diquis Delta. Found in the Puntarenas Province, these spheres were located all over the region, even as far out as on Caño Island, and yet very little seems to be known or understood about their origin.
Seemingly first discovered by employees of the United Fruit Company back in the 1940’s, various studies have shown them to be manmade, and they appear to be nearly perfect spherical shapes. Quite amazing based on their antiquity dating back to somewhere between 200 BC and 800 AD. Due to the fact that little is known of their origin, creators, nor even their usage, of course has caused great controversy. The only points really known is that hundreds have been found, from a few centimeters to two meters in diameter, and weighing up to 16 tons. The first mystery is who made them, and how. It is unusual that the ancestors of the region might have had tools to carve rock to such precision; as though some argue they are not ‘perfectly round’ they still do come amazingly close to it. So close that even today it would be a difficult task, and yet there are hundreds made. Did they master the art of carving? Or was it something else? One excavation found flakes of the boulders, leading to one possible method of manufacture. The stones, many made of granodiorite, seem to exfoliate in layers like onions when heated than cooled rapidly. Could this be how they created them? But who? Then there is many a myth. Some storytellers believe the stones linked to the lost civilization of Atlantis. Others that in the very center a single coffee bean would be found. And most unfortunately, that not coffee, but gold would be found. This latter idea led to the blasting and destruction of many a sphere, and still many others, most probably, were looted by others, and indeed many moved by the government itself to display to the public.
July-August, 2007
Of course this all means it is even harder, not being in their original locations, for archeologists to determine their use. Why were they here? One of the articles I read laid out 5 possibilities based on logical study. 1. Land Marks- markers: Stone statues have been used throughout the Americas as highway markers, and spheres would be particularly suited to the region, resisting deposits of soil, and being extremely obvious in their surroundings, as well as easy to move via rolling. 2. Lighthouses: An interesting aspect is how easy they are to see, with some having been placed at the tops of hills, and others seemingly coated in lime, which would have made them particularly easy to see, helping travelers to ‘find the way’. 3. Ball bearings: A possibility, though less likely. Balls can be used to move large objects, but generally with the help of a lubricant, of which these spheres show no sign. And what was being moved that was bigger than the balls themselves? 4. Weapons: Historically balls have been used in weapons of all sizes, from the sling to the catapult. Even being rolled downhill to crush the charging enemy. It is known that cultures of the region engaged in warfare, but did they have the ability to create a large sling, or catapult? 5. Astronomy: Like other mysterious stones around the world, such as Stonehenge, the thought of aliens, or the study of the sky, often comes to mind. The biggest problem with this theory is the region itself. The dense forest of the area would have made it impossible to see well, saving the thought that maybe the area was much more open back 1000 years ago. Today, the stones rest throughout the country, visible in front of museums and old homes, depicted on the 5000-colone notes, and yet totally forgotten as to why we made them in the first place. In closing, it seems apparent that nobody is going to find a proverbial roadmap to who, what, nor why they were here, but it is certain that they will continue as a part of the culture, and to define the region from where they came.
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El Residente
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Consumer’s s Callls Auto Service Problems Mr. William D. Walker Subject: Your letter dated April 17, 2007 Dear Mr. Walker: I read your letter which makes reference to events dated all the way back to 2001. In your letter you mention that in 2001 we did not return your repeated calls to trade in your Trooper for a new one. I am very sorry for our lack of follow up then; unfortunately I have no means to look into what happened so long ago. I am happy that your Trooper seems to have worked very well for 8 years. To tell you the truth, vehicles in Costa Rica tend to present much more problems than in developed countries due to the conditions under they are driven. We appreciate business from our customers and do our utmost effort to serve them well; no matter how long they keep it or how often they buy. In reference to event in May 2006, I must clarify that Mr. Eduarte is not our Service Manager, he is a Service Consultant. I believe there was some kind of misunderstanding; we do not accept vehicles in our service shop without at least some kind of communication from the customer that the vehicle is on its way. The reason is simple; we do not like to be responsible for vehicles that arrive without notice. During the reception we inspect the vehicle with the customer to avoid claims in relation to preexisting conditions. This is a normal procedure around the world and included in most manufacturers standards.
I am sorry you damaged your car in January 2007. Comparing prices among service shops is not a simple thing to do. I do not know if Isuzu parts were used; we use them in all our repairs and they have warranty. I do not know either the level of expertise of these shops and their willingness to be responsible if something goes wrong. I of course understand that maybe fixing an 8-year-old vehicle with genuine parts at a certified dealer might not make economic sense to you. In reference to your visit on March 27, I apologize if the service was not up to your expectations. Unfortunately Holy Week in Costa Rica is a big holiday and many of our customers bring their units for checkups and repairs before they drive to the beach etc. They do make appointments for this and the shop gets very busy during this time of the year. The reception process is normally less than 20 minutes unless there are other customers in front. From the 27th to the 30th, as they advised, the shop was totally booked and therefore the vehicle was not scheduled for repair until the 2nd and 3rd of April. We were opened Monday and Tuesday for last minute problems but not fully staffed. For years we have closed the company for Holly Week trying to match vacations for our personnel with a very slow business week. Maybe times have changed and we need to revise this practice for next year. We are implementing a lot of changes in our shop to better service our customers. It is our objective to be the best shop operation in the country and well above international standards for which we are working hard. I appreciate your time and effort to communicate your experiences, which will contribute to our efforts. Best regards Mario Lachner GrupoQ Lachner & Sáenz S.A.
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Puntarenas s by Ana Hernandez
Garden of Eden in Sunny Costa Rica When I think of Puntarenas, I think of a small seaside town of yesterday, smelling of fish and strewn with driftwood. A busy port in the Pacific Coast of huge historical importance and a dreamy weekend resort for Ticos, whose fame began in the late 1800s, lasting until about the 70’s, by which time the modernized Port of Caldera and other luxurious vacation spots took its place.
almost impossible and inmates were practically isolated from the rest of the world. The novel, which was titled “The Island of the Lonely Men,” was made into a movie and created quite a stir for a while. Another interesting island in the Peninsula is Isla Chira, inhabited by a small community where women are beginning to manage the local fishing industry and going out to sea to fish by themselves to learn more about their self-sustainable operation. Natives of Chira are eager to show visitors the hidden charm of their village and of their people. Further south is Isla Tortuga, which, with its calm, incredible blue sea waters and secluded white-sand beach, is visited by hundreds of tourists each year who journey to the island in style on board yachts and catamaran boats.
Despite its temporary decline, the port town of Puntarenas has recently begun the path of progress once again. Big name cruise ships visit this sunny and sultry port, bringing hundreds of tourists who eagerly walk up and down the port’s vibrant oceanfront boulevard, shopping for souvenirs and stopping at friendly pubs for a Daiquiri or a Piña Colada, on the aptly named “Paseo de los Turistas.”
Puntarenas, the heart of the province, colloquially known as “El Puerto” is a slender, narrow sandy point in the Gulf of Nicoya. It’s located west of the capital, about an hour and a half from San José, and can easily be reached by car or bus. From the center of Puntarenas, visitors can cross via ferries to the Nicoya Peninsula if they wish to continue onto newer Pacific bound adventures. Three ferry services, one bound to Naranjo Beach, one to Playa Tambor and the other to Paquera, take travelers of the Nicoya Peninsula to different and exciting destinations. Soon after leaving the port, sightseers come upon Isla San Lucas, with its obscure, infamous past. Even though is not presently open to the public, visitors learn that the island was the “Tico version” of Alcatraz, a prison for hard criminals in a pauper condition used for several decades until it was finally closed in 1991. The site is also well known because of a novel, written by former inmate José León Sánchez, which exposed the crude lives of prisoners of San Lucas Island at the time. Its nearby ocean waters infested with hungry sharks made escape from this 800-hectare island
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The largest of them all, Isla del Coco, a 2,400-hectare national park is located about 500 kilometers from Puntarenas. The island is famous for its lore of pirates, whom according to legend left valuable treasures buried in the perimeter. Although the real treasure of Cocos Island is its unique ecological diversity. About 90 bird species, reptiles and several types of mammals, even domesticated pigs left there by previous dwellers, live peacefully amidst paradisiacal verdant vegetation and tall waterfalls. The waters surrounding the island are a diver’s dream, with over 300 marine species- among them the spectacular and rarely seen white hammerhead shark. It’s no wonder Cocos Island has recently been placed on the list of “Patrimony for Humanity Sites.” Visitors to the Province of Puntarenas wanting a bit of relaxation can head via ferry for the luxurious Barceló Hotel at Playa Tambor. The Spanish-owned hotel chain Barceló whose beach front development created controversy at one time- is well-known now for offering pricey tourist vacation packages with all inclusive services: large pools, whirlpool, disco, tennis courts and abundant food for all their guests. For an adventure-filled experience, one can go south of Puntarenas to Paquera on the ferry and continue on by bus or car to Cóbano and then to Montezuma, a small village comprised of people from different nationalities resembling a leftover communal group from the Sixties. The beaches of Montezuma, Malpaís and Cabuya are uncommonly beautiful and unforgettable. From this point, it’s only a short ride to the Continued on page 15...
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entrance of Cabo Blanco Absolute Wildlife Reserve, a 1,172hectare national park at the tip of the Nicoya Peninsula famous for its natural beauty and conservation efforts on the part of local inhabitants and Forest Park authorities. It might be easier for visitors heading to the southern beaches to travel north on the Pan-Am Highway then drive south to Herradura shortly after passing the airport. The road goes through Cerro del Aguacate, an exhilarating mountain pass with breathtaking views leading toward Jacó Beach, a popular beach town and fine surfers’ destination. Beautiful rural cities such as Atenas and Orotina are on this coastal road. A small detour south from Jacó Beach takes nature lovers to Playa Hermosa and Esterillos, which are secluded, less the revitalized Port of Golfito, well-known for its duty-free crowded beaches with long lasting tides and big waves; good shopping, modern marina and excellent fishing. For a wilder adventure, visitors could go to Drake Bay through the remote for surfers but not very safe for swimmers. village of Sierpe and its awesome water route, the Sierpe Just one hour from Jacó is Quepos, an old fishing seaside River; both sites hidden among the banana towns of Palmar village slowly giving way to tourism as one of its main incomes Norte and Palmar Sur. and the starting point toward Manuel Antonio Beach. Diversionfilled Manuel Antonio has dozens of cozy restaurants, neat Drake Bay, named for the pirate Sir Francis Drake, is near hotels and colorful souvenir shops. This region is home to the ecological jewel Corcovado National Park. Both the bay gorgeous Manuel Antonio National Park with outstanding and the park can be reached through the Sierpe River, whose white sand beaches and trails leading to tall cliffs and majestic strong current moves with the ocean tides. To navigate along this mysterious jungle, where trees heavy with moss dip their views of the Pacific Ocean. fingers in the waters, is indeed a most unforgettable journey. The park is world-famous for the many species of birds, iguanas and families of monkeys living in the area. Large The Sierpe River is a long-winding jewel of the Puntarenas troops of white-faced monkeys do their daily forays on foot Province and plays the important role of feeding the most looking for fresh leaves or jumping from tree branches to the important mangrove forest in the country with roots that twist forest floor determined to steal any lunches left unattended by themselves into impossible mumbled-jumbled shapes, while the park’s visitors. Spider Monkeys and the Tití, a very small floating islands of closely packed water lilies teeming with life monkey about the size of a squirrel, also live there. The Tití move up and down with each tide. is unique because it’s a native of this region and sadly on the verge of extinction.
Driving south about an hour from Manuel Antonio, on a bad stretch of the Costanera Highway, is Dominical Beach, a favorite spot for surfers and free spirits. From Dominical, travelers can visit the nice towns of Uvita and Ojochal that has captured the interest of many French Canadians who have chosen to live there perhaps because of the tranquility of its settings and natural beauty. Then continue on to nearby exciting Ballena National Marine Park in the Osa Peninsula for sightseeing. Osa Peninsula can also be reached via the Valley of San Isidro del General driving through the tall, chilly mountain pass of Cerro de La Muerte. Southern bound on the Pam-Am Hwy toward the Panamanian border, visitors can choose to visit
July-August, 2007
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Cultured Trrav veler by Jan Yatsko
Travel Journals Many years ago, to help me celebrate a milestone birthday, my husband whisked us off to northern Spain to visit friends. Our friend’s town of Ascara had a population of 27 and everyone lived in old stone houses nestled together on top of a hill. Below the town, golden fields planted in rows were set against a big blue sky that completely surrounded us. I heard the hollow sound of bells playing in different rhythms as a flock of sheep passed through the fields with their herder. The sun was hot upon my neck and I sought a cooler breeze in the shade. I can write that scene from memory because I painted it. I decided to slow down our hectic pace for a few hours to really see and to activate all of my five senses. This small painting placed in the same album with all of our photos is the only image I can clearly see from memory. It changed my idea of how a travel experience could be recorded. Frederick Franck in his book “Zen of Seeing” says that “in this 20th century, to stop rushing around, to sit quietly on the grass, to switch off the world and come back to earth, to allow the eye to see a willow, a bush, a cloud, a leaf…I have learned that what I have not drawn, I have never really seen.” We have the tendency to see on a superficial level because our minds are cluttered with the scenes of our hectic daily lives. Change forces us to become more aware of our surroundings as we begin to notice things that were always present. Travel is an example of change that gives you the jolt needed to see the beauty of a place. We can train ourselves (like artists) to be more observant and to record our travel experiences in many ways. The Basics. I would like to share with you some of the basics of seeing, drawing and journaling that I teach to the participants in my travel art journal workshop/tour called Explore and Create in Costa Rica. Regular bond paper and a pencil or pen is all you need to begin the following two exercises in your home. Find a comfortable place where you will not be interrupted for 15 minutes to begin the observation exercise. Record everything you see, hear, smell and feel through written and drawn observations. Don’t forget to look above, below and behind you. Close your eyes to concentrate on the sounds and smells. Practice this exercise in some form several days a week even if it is for 5 minutes. Vary the time of day, location and your body position. Are there differences in your observations or your emotions depending on the location, etc.?
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Drawing is more about seeing and it is probably the easiest and most portable way to bring more creativity into your life. We are not born with the skill to draw; but rather it is learned and practiced like reading, driving a car or learning a foreign language. With that said, draw your breakfast, even if it is a cup of coffee. Before you begin, take a moment to observe your object(s) almost to the point that you feel a part of it. As your eyes slowly trace its outline, simultaneously draw what your eyes see. Remember to draw what you see and not what you think you see. Caption your drawing as if you were doing an observation exercise. How to create a memorable journal. I have found that the most memorable and interesting travel art journals include written, drawn, painted and collaged pages. Selecting a theme for your journal helps to focus your observations. Often the theme reflects the interests of the person and/or specific highlights of a country. For example, a theme for Costa Rica could be nature or new Spanish words. Next, observe the colors that you see and paint a light wash of those colors on several pages of your journal. Be observant of where you found those colors. Was it a color found in nature or was it a mosaic tile found in a temple in Spain? Apply the colors from nature in a fluid style and create a border on your journal page to look like mosaic tiles. Use those colored pages for your written observations or as a base to collage your found objects. Collect menus, travel brochures, postcards, tickets, stamps, etc. to collage into your journal. Your travel art journal kit. I like to travel light. I carry with me a 7”X10” spiral watercolor pad, #4 and #10 round brushes, a fine tipped black permanent ink drawing marker, a glue stick and a set of 12 or 24 watercolor pencils plus sharpener. Watercolor pencils allow me to quickly capture the moment by drawing in the color areas like a coloring book. Later in my hotel room, I can touch my drawings with a wet brush and turn them into paintings that will be dry and ready to go for the following day. Remember that a travel art journal is not always about pretty pictures or entries. It is a cumulative record of our feelings and observations during our travel. We join the ranks of great people like C.S. Lewis, Columbus and Leonardo da Vinci when we journal. Journaling is also a learned skill that improves with practice. ---------Jan Yatsko is an artist and travel art journal workshop instructor. She has been living in Atenas, Costa Rica with her husband Tom for the past 8 years. More information about her can be found at www.janyatsko.com
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Naturally Pow wered by Richard Leatherma an
Solar, Hydro: Almost Free Energy Because of my strong interest in energy independence, I read with interest the excellent article, “Sleepwalking into the Future,” by Alan Weeks that appeared in the last issue of El Residente. I agree with his concerns about our world’s energy supplies and with his solutions. However, I was disappointed that there wasn’t more information on what we as individuals can do about our home energy uses. Costa Rica is a great location for home power systems. With our abundant sunshine, solar energy is a natural source of power. For those of you lucky enough to have a falling stream on your land, installing a small hydro system is a smart solution for low-cost power. Or, if you live on top of a high hill or on the beach and have a strong and steady wind, you may be a logical candidate for wind power. I agreed to write this article for El Residente because I have a passion for the subject. When I drive through the back roads of Costa Rica, my friends now roll their eyes when I exclaim, “Wow, look at the fall in that stream! Look at the flow! Now that’s power talking! I could power half of Santa Barbara with that stream!” And, every once in a while, when I see a solar panel or a wind generator, I really go nuts. This article is not designed to provide you with all the information you need to install a home power system. It is written to peak you interest. Unless you have experience with electrical systems, I would strongly encourage you to hire someone who does have experience with home power systems. I would urge you to read articles and books on the subject so that you will be able to make intelligent decisions about the type of system you need. I have found the Home Power magazine to be a great source of information. Now for the disclaimers... I am not an electrical engineer. I am not an expert on home power. I do not own a business that installs solar or hydro systems and I don’t sell the components. I don’t give speeches for money about home power nor write books that I sell about the topic. I have, however, been involved in small energy systems for the home for over 20 years. I’ve purchased and read books on the subject, purchased Home Power magazine’s first issue back in 1987 and have read every issue since, and installed a solar power system in my home here in the States. I’m simply a hobbyist that is involved in home power because I like the independence it provides. When the entire neighborhood here in Richmond is without electricity, I love to walk out at night and turn on my front porch light. I can watch TV, run the microwave, keep my frozen foods frozen and my refrigerator cold, turn on the radio to see how the rest of the world is doing, and play my favorite CD’s or DVD’s—all powered silently by the batteries that were charged by the sun. I titled this article “Almost Free Energy,” as it isn’t free. Purchasing the components to initially install a solar, hydro,
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or wind system in Costa Rica is going to cost you significant dineros! And there is no such thing as a maintenance free system. It will require that you become educated about, and involved in, your own power generating components. Before jumping into a brief discussion of home power, I need to say upfront that conservation is much cheaper than generation. That is, you will get a lot more bang-for-the-buck by first making sure you have reduced unnecessary power consumption. Replace your old incandescent light bulbs with the newer florescent bulbs. Yes, the initial cost of these bulbs is significantly higher than a standard light bulb, but the bulbs last about 10,000 hours vs. 1,000 hours for an incandescent. For our discussion on energy conservation, the fluorescents use only one quarter the power of an equivalent incandescent bulb. Also, use ceiling, floor, or table fans for cooling, as air conditioning is simply not practical with home power systems. If you need air conditioning, it is likely that you will not be able to justify the large and expensive system necessary to power the high energy needs required to convert hot air to cold or cold air to hot. If you have an electric hot water system, it is also likely that your system will not power it. Like air conditioning, it takes a huge amount of power to change cold water to hot. Likewise, the resistive heat created by your stove or oven is another big power user. You will, however, be able to run one burner on your electric stove, but don’t expect to cook a full-course meal with all the burners and the oven going. In general, a small system will power your TV, radio, microwave, cell-phone charger, DVD player, florescent lights, and refrigerator. A medium size system will power the preceding items plus your wash machine, ceiling fans, and a burner or two on your stove. And, a large system will power almost everything else, including an electric water heater and a small, window air conditioner. The instillation of small power systems in Costa Rican homes makes sense for a number of reasons.
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There is the never-ending sunshine of this terrific country, its incredible falling streams, and in some locations, strong and steady winds. You can reduce the high cost of your electrical energy. Home power systems are more practical here in Costa Rica, as homes here usually were constructed to require Continued on page 20...
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much less power than those in the US and Canada. It can provide you with an uninterrupted source of power. If you have property that is not serviced by electricity, then a home power system is essential to reduce the high cost of bringing in electric utility lines. With hybrid and full electric automobiles, scooters, and bikes becoming more available, it only makes long-term sense to “fill it up” using free power from a home power system. Fortunately, the electric system here in Costa Rica is the same as the States and Canada. This means that the home power items now manufactured in North America can be used here. A home power system meets the needs of individuals who have a strong belief in conservation of this planet’s resources.
Because almost all members of ARCR can benefit from solar power, the focus of this article will be on creating electricity from the sun, not from hydro or wind systems. For those of you that are interested in hydro or wind systems, there are some great books and magazines on the subject. When designing a solar, home power system, there are two basic types, “on grid” and “off grid.” An on-grid system is simply one that is connected to the local power company and your home system, and an off-grid system isn’t connected to the power company. In both systems, four things are usually needed:
you only need backup power for frequent interruptions from your utility. As stated earlier, if you plan on powering a small, window air conditioner and an electric water heater, you are going to need a lot of power and a large system.
Here in Richmond, I have a medium-size solar system. I have six, 120-watt solar panels; two Outback, 2500-watt inverters connected in series to produce 120/240 volts at 5,000 watts; a couple of thousand pounds of batteries that I got from a defunct telephone building, connected in a 24-volt configuration; and a controller. I also have a 120/240-volt generator that I use to charge the batteries when my home usage exceeds the sun’s supply. Several years ago, we had a major hurricane here in Virginia, and the power was out for a week. During that time, I ran the home using the sun and batteries for three days, and then ran the generator for a few hours during the day to charge the batteries. Had I invested more money into additional panels, I would not have had to run the generator. Here in the States, the 120-watt solar panels cost about $600 U.S. each, the inverters were about $2,000 each for the 2500-watt Outback unit (I used two for 5000-watt, 240-volts), and large, surplus industrial batteries (NOT car batteries!) cost about $2,000. In addition, I probably spent another $1,000 for cables, controller, meters, and other miscellaneous items. In the future, my hope is to also be able to afford to install a small solar system on my home in Santa Barbara.
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Solar panels to convert the direct sunlight to electricity. The more panels, the more electricity is available. Batteries are usually needed to store the power during times when the sun is shining and releasing the power when it is needed. The more batteries, the more power you can store and the longer you can be without sunshine. An inverter is needed to change the direct current (DC) from the solar panels to alternating current (AC) for your home. The bigger the inverter, the more power is available to run your home. A controller is needed to keep the batteries from overcharging.
The size of your system depends on your electrical needs and the amount of money you have available. For example, if you want to be totally independent of the power company, than you are going to need a much larger system than if
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Richard Leatherman has a small home in Santa Barbara and a primary residence in Richmond, Virginia. He has applied for residency based on his two-year old Costa Rican daughter. He is a retired college professor, who spends most of his time in Richmond, teaching part time and writing books on leadership and teaching. He can be contacted online at rwlceo@aol.com. Home Power magazine. http://www.homepower.com/ Backwoods Solar Electric Systems. http://www.backwoodssolar.com/ Solar Energy Technology: Costa Rica. http://www.com.washington.edu/ict4d/upload/ 2004051316470731_06480428.pdf Energy: Costa Rica Taps the Sun. http://www.ips.fi/koulut/199750/3.htm Costa Rica Suppliers: http://www.solarbuzz.com/CompanyListings/CostaRica.htm
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Dollars & $en nse by Alan Weeks
Why Invest Internationally?
focus of ‘commission-hungry’ brokers and brokerage houses, all eager to accentuate the positive, has been strong enough to confuse most investors. For example, as this article is being written, the headlines read: New US Homes Sales Up 16.2% in April. The second line indicated that this surprising increase was far above estimates. The subtext went on to state the real reason: The Median price of new homes sold was 11.1% below the previous month. This was the biggest monthly price decline recorded in decades.
The best reason any investor should appreciate is that far better returns have been made at minimum risk in many of the other developed country’s stock markets than in the US. In fact, most international stock markets have outperformed the US market by substantial margins over the last 5 years.
It was later reported that the volume of US existing home sales fell another 2.6% in April. And, the median price of existing homes declined for the 9th consecutive month. Thus, the April reports on home sales continue to confirm the downward slump that should be expected after the building glut & the unprecedented and In addition, the other major economies are now growing at a faster unsustainable US housing prices peaked last year. pace, while US economic activity continues to decline steadily. This Here are two other examples of misleading statements regarding US should support further out-performance by the international equity economic growth and employment: markets for several more years. (1) The original estimate for the 1st Quarter 2007 US growth was In the past, the rest of the world’s economies were so dependent 1.3% p.a. The US growth estimate was just revised downward by on the US ‘economic growth engine’, that they were always pulled more than 50%, to just 0.6%. into recession along with the US. The saying used to be: “Every time the US sneezed, the rest of the world caught a cold”. For (2) The US Bureau of Labor Statistics (BLS) estimated a large example, when the US economy slumped into recession in 1980 gain of 442,000 jobs in the 3rd Quarter of 2006. However, much and again in 1990, the major countries then participating in the more thorough analysis done by Business Employment Dynamics global economy also suffered recessions because they were too (BED) by reviewing reports throughout the employment insurance system, reckoned the total gains to be a scant 19,000 new jobs. dependent on the US for economic growth. Throughout that era however, China and India, the two most populated countries in the world, were virtually ‘locked-out’ of the global economy by reason of their isolationist policies. There are several good reasons to believe it should be different this time. China and India are now ‘powerhouses’ of sustainable growth. In addition, the German, Japanese, Canadian, and other economies have continued to surprise many with better than expected growth. One reason is probably because they have developed more diversified export economies, and are now much less dependent on the US than ever before. It has also been a surprise that these countries, most of them better known for their export orientation, have been enjoying decent growth in domestic consumption. And, with a combined population 9 times larger than the US, their domestic consumption potential has now started to be satisfied at an accelerating pace.
Upon this further detailed review, the differences included a huge downward revision in manufacturing jobs lost from 9,000, to a loss of 95,000 jobs using actual payroll figures. And, the BLS initial report of an improbable gain of 20,000 construction jobs (think: housing) to a loss of 77,000 construction jobs by the more accurate BED measure. How many people have been clearly apprised of these huge downward revisions in US growth and employment by the mainstream media or other responsible parties? And more to the point, am I the only one feeling there is again a lot of ‘spin’ emanating from Wall Street & Washington being ‘hyped’ by the media?
Because of this feeling, I believe investors must look past the ‘hype’, the myriad of excuses, and the short-termism that we are being bombarded with every day in order to invest successfully. Instead, it is more important now than ever before in our investing lives, to educate ourselves so that we become aware of the ‘potholes’ and focus on the It is fortunate that the fairly gradual decline in US economic activity opportunities available for successful long-term investing. has allowed astute investors the luxury of being able to observe how RESULTS COUNT much impact this is having on the other global economies. What has been observed so far is that, for somewhat different reasons, By examining the relative performance of the major global stock most of the other major economies are surprising many with their markets over the last five years, the much higher gains of even the more staid international markets becomes strikingly obvious, even continuing broad-based growth. before taking currency gains into account. Here are comparative Many of us now expect that global growth will continue, albeit at a stock market index gains for selected G-7 nations over the last slower pace, even if the US slips into a prolonged recession. 5 years, (below, calculated May 14th from charts from the Yahoo Finance site): US ECONOMY NEARING ICEBERGS There are now many more indications of serious economic distress in the US than there were when the Dollars & Sense article was written on this subject last October. Given there are such ominous signs, why are so many Americans still not fully cognizant of the serious consequences of these major looming economic problems? We believe the ‘deafening noise’ of media hype, plus the short-term
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Thus, the US market over the last 5 years barely gained more than 3.5% per year, net of inflation.
‘EYEPOPPING’ INTERNATIONAL GAINS The following is an illustration of how much more was gained in total by Continued on page 24...
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YAHOO FINANCE COUNTRY CANADA GERMANY JAPAN USA
STOCK MARKET INDEX
5 YEAR GAIN (Before Inflation Adj.)
TSE 100 DAX 30 NIKKEI 225 S&P 500
+ 75% + 45% + 54% + 33%
REAL 5 YEAR GAIN (Adj. For Inflation) + 60% + 30% + 39% + 18%
astute American investors over the last one and 5 years in several of the other stock markets, when currency gains are included.
describe this type of situation is: “Too much money is ‘chasing’ too little value”.
(a) Canada The Canadian stock market has consistently outperformed the US market over the last 5 years with a total gain of 75%, more than double that of the US market. In addition the Canadian dollar gained 45% relative to the US dollar over this same period. Canadian investors, of course, have enjoyed these strong gains.
In addition, hordes of new Chinese investors as well as foreign speculators have driven the Shanghai stock market up 135% over just the last 9.5 months to mid May. Because there had been no net gain in this market over the previous 4 years, one has to suspect this is another instance of “irrational exuberance”, and that a huge ‘bubble’ in the Shanghai market has been created.
Astute US investors have probably also been investing in the Canadian market. These folks would have enjoyed a total gain of 120% over the last 5 years when denominated in US dollars.
And finally, the major world equity markets have already enjoyed an exceptionally long run of growth without a real correction (defined as a drop in value of 10% or more). If history is any guide, they should now be well overdue for a healthy one. And, depending on the catalyst that ‘sparks’ panic selling, a decline of substantially over 10% in market value sooner than later should not come as a surprise.
Even US investors starting just last year, after recognizing the strong performance of the Canadian resource-heavy stock market and strengthening Canadian dollar, would have enjoyed a total gain of 25%. (b) The UK Since the end of 2002, the UK stock market gained 64%. In addition, because the British Pound (GBP) also appreciated dramatically, astute US investors would have gained 104% in US dollars, more than 3 times as much as in US stocks, over this same period. Anyone, who started investing in the UK market only a year ago, gained about 11%. However, because the GBP gained another 15% vs. the US dollar over the last year, the total gain for American investors would have been 26% in US dollars. (c) Germany The German stock market index, as a Euro denominated market, is being used to illustrate the huge increase in gains for US investors as a result of the fact the Euro gained in value over the last 5 years by 50% relative to the US dollar. As shown earlier, a European investor in the German stock market would have enjoyed a gain in his equity portfolio of 45% over the last 5 years. However, American investors would have enjoyed a total gain of 95%, denominated in US dollars. What I am trying to point out is that the additional opportunity for US investors, to invest much more heavily in solid international markets is simply too significant to ignore. Of course, Canadians and Europeans have already enjoyed the better gains by investing in their home markets as well as in other international ones. The results shown in this article should provide a strong incentive to continue favoring these non-US markets.
BE WARY OF ‘POTHOLES’ Quite a few professionals believe most equity markets worldwide have become over-inflated by unwary investors lured to keep buying stocks by the ‘Pied Pipers” in the brokerage industry and all the media ‘hype’. As one good example of this, it has been reported that the amount of money now borrowed to buy stocks on margin on the NY Exchange, has already exceeded that at the peak of the stock-buying frenzy in early 2000. The expression we use to
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For this reason, advisors and brokers should be reluctant to recommend buying equities now. We know from experience that the best buying opportunities always occur immediately after a correction. We also know that experienced bargain-hunters converge at that point to buy the best stocks and funds at much cheaper prices, with new money, previously accumulated in cash equivalents, awaiting this opportunity. This is why quality stocks and funds rebound in value most quickly. It is also the reason why informed long-term investors already in good portfolios need to ignore the panic, when markets correct, and simply stay invested. As they say: “The cream [of investments] always rises to the top”.
THE WAY AHEAD For maximum diversification away from a probable continuing underperformance of the US dollar and the US market, conservative investors, who do not have the time to spend researching individual foreign companies, need to identify a diversified group of the best conservative, international value funds. At this point in time, these funds should be invested conservatively in countries including ‘old’ Europe, the Nordic countries, Canada, and in the more developed Asian nations. All of these should present good investment opportunities. In addition, it is believed that the most undervalued currencies today, relative to the US dollar, are those of the major Asian nations. The key ones are seen to be undervalued now by around 25%. Thus, good Asian funds should provide very attractive long-term gains for patient investors with the expected currency gains added to dividends and capital gains. The information selected for this article was gleaned from reports in BARRON’s and other leading financial publications. The opinions expressed in this article are solely those of the author. For more information or reference details, please do not hesitate to e-mail Alan Weeks at: imccr2002@ yahoo.com
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Provincial Park ks by Ana Hernandez
Paseo de los Turistas- Downtown Sea Breeze & Nostalgia In my way of thinking, a place that gives this seaside city its unique identity more than anything else I can remember is the long ocean front sidewalk, known as “Paseo de los Turistas” so familiar and loved by Tico visitors to the Pacific Port. Around the age of thirteen, I traveled to the beach and to the Port of Puntarenas for the first time. I went by car with friends and the only thing I could think of during the two-hour trip on an old road full of ravines and sharp turns was: “How soon am I going to see the ocean?”
continues to be today the place for visitors to stop to buy a soft drink, meet friends and mingle with locals.
But I am partial to the way the Tourists’ Boulevard used to be when I first visited it. Many of the goodies and crafts for sale there were rarely seen in the capital at the time. Vendors sold their wares to tourists from neatly decorated stands brimming with handmade items such as straw hats, wooden toys, crafts and jewelry made from coconuts and sea shells. Travelers eagerly bought these unique items to take home as gifts for When that instant finally arrived, and my eyes were filled with children and family members. Sadly, most of those items have the blue immensity of the sea and the almost invisible gray now been replaced by cheap plastic stuff made in China. horizon in the far distance, I was utterly captivated. I never knew the sea could be so large, and its swirling waves Some of the things I remember the most, perhaps because so powerful. I almost never saw them in the city, were the luscious fruits such as marañon, the cashew fruit, and caimitos, round purple delights bigger, sweeter and fleshier than plums, always available at fruit stands at the boulevard in neat wooden crates. Tempting cajetas, fudge squares made with powder milk, cashew or coconut, and fat strips of sugarcoated grapefruit, were treats hard to pass up. Then there were the little seafood places famous for their ceviche, a cocktail of tender pieces of fish cooked in lemon juice and the tantalizing catch of the day: fish, served broiled -head and all- on a big platter with steamy rice on the side. And to top it all off, something Puntarenas gave every visitor: a glorious sunset the color of fire, followed by a pleasant evening breeze that invited everyone to take a walk on the Paseo under the silver moon. From a nearby jukebox came the sound of a soft, romantic ballad while from the old pier one could see the muted lights of fishing boats and commercial ships anchored in the distance. Many things have changed, Right before arriving to the town, the warm breeze coming off come and gone, but those sunsets of Puntarenas will forever the estuary on the right of the gulf brings in the smell of salt stay in my memory. and fish, and seagulls with their beaks stuffed with their catch, can be seen taking off from the water. The scampering of the crabs toward tiny holes scattered all over the beach, the sultry temperatures and the feel of the moist sand on my bare feet were emotions I was experiencing for the first time- feelings that are evoked each time “Puntarenas” comes to mind.
It’s no wonder this little tropical paradise in the Pacific was the favorite vacation spot for Ticos for more than a century. Many old timers traveled to Puntarenas for days on covered oxcarts to spend their honeymoons there. This exodus continued later on among younger Costa Ricans on the now-extinct electric train to Puntarenas, or by highway all through the years when the city was a fine recreational place and the most important commercial port in the country. The long cement sidewalk that runs parallel to the beach known as “Paseo de los Turistas” was in the old days and
July-August, 2007
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Exchange rate of the Costa Rican ¢ to the US Dollar December 515.84 January
517.11
February
517.01
March
516.91
April
516.80
May
516.65
Basic Interest Rate December 11.25 % January
10.75 %
February
9.75 %
March
8.00 %
April
7.50 %
May
7.25 %
Exchange rate of other currencies to the US Dollar Japanese Yen 121.58 Swiss Franc
1.2236
Canadian $
1.0677
Giro (DEG)
1.5129
ÂŁ Sterling
1.9786
Euro
1.3468
Mexican Peso
10.736
Korean Won
926.70
Danish Krone Norwegian Krone Argentine Peso
5.5308 6.0342 3.0782
Colombian Peso 1,896.1 Brasilian Real
1.9302
Libor Rate 1 month 5.3200% 3 month
5.3600 %
6 month
5.3848 %
12 month
5.3900 %
Prime Rate
El Residente
8.25 %
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Holidays Of Costa Rica July 25th ‘Guanacaste Day’ July 26th ‘National Day’ August 2nd ‘Virgin of the Angels’ August 15th ‘Mothers Day’ ‘Assumption Day’ ******************** A Touch of Wisdom “A drowning man will clutch at a straw.” More (1534) “Charity covers a multitude of sins.” Erasmus “Everything happens for a reason.” unknown ******************** Quick Ones Two boys were arguing when the teacher entered the room. The teacher says, “Why are you arguing?” One boy answers, “We found a ten dollor bill and decided to give it to whoever tells the biggest lie.” “You should be ashamed of yourselves,” said the teacher, “When I was your age I didn’t even know what a lie was.” The boys gave the ten dollars to the teacher. A snail walks into a bar and the barman tells him there’s a strict policy about having snails in the bar and so kicks him out. A year later the same snail re-enters the bar and asks the barman “What did you do that for?”
July-August, 2007
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El Residente
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