Fidel Castro: Handing money to the people

Posted February 19, 2008

"The fund soars every time Cuba makes positive headlines. Today is no different. It looks like investors will see a double-digit surge in the tiny fund's valued. " – Andrew Snyder

By Andrew Snyder

Baltimore (TFN) — There will be dancing in the streets. Cuba's communist leader, Fidel Castro, has stepped down from his authoritarian post. It marks the first opportunity for economic freedom in the country in nearly fifty years.

The possibility of Castro throwing in the towel is nothing new. The world has been anticipating the day ever since Fidel fell ill in July of 2006, relinquishing power to his brother, Raul. But with the powerful dictator out of the way, the road to freedom — and profits — is cleared of one more very large obstacle.

We will know a lot more in just a few days. On Sunday, Cuba's National Assembly will meet to pick a new leader. It is very likely Raul Castro will remain in charge. Even if he does, the less aggressive, camera shy dictator would be a welcomed leader over the old regime. Anything is better than Fidel… even his brother.

One small step for man…

Today's news will not set the economic world on fire. There are still political prisoners to free, political parties to organize, and freedoms to be instilled. But it is the first small step towards opening free trade between the U.S. and Cuba. When that happens, huge economic opportunities will arise.

Commodities, tourism, even clothing manufacturers would benefit from open trade. One fund that is already doing very well thanks to Fidel's resignation is the Herzfeld Caribbean Basin Fund (CUBA:NASDAQ). The mutual fund invests in a diversified portfolio of companies spread across the Caribbean. It is know for is abilities to give American investors a rare shot at Cuban profits.

The fund soars every time Cuba makes positive headlines. Today is no different. It looks like investors will see a double-digit surge in the tiny fund's value.

One giant leap for investors

This could be a very interesting time for investors. In July of 2006, when Fidel initially took ill, the fund jumped from about $7 to nearly $17 in a matter of months. Before today's news broke, the fund was once again trading in the $7 range. There is plenty of room for growth.

Today's story may ultimately prove to be a political event, more so than an investment opportunity, but the potential for profit is evident. The more good news that hits the wires, the better the chances of making some serious cash off this deal. There are other ways to invest in the situation, but the Herzfeld fund gives you unique exposure with a surefire route to success the minute any real news breaks.