Honduras 2: Snorkelling

The snorkelling on Roatan was probably the best part of our vacation.

Scuba is the popular thing to do. But we didn’t feel like spending the money or time required to get trained, and were fairly confident we could see a lot. It was tricky finding good advice on sites – most of the printed material is focused on scuba, and the sites were too deep for us to visit. But with good glass-faced masks, and gradual improvement in our diving abilities we made it work really well.

The basic reef fish are just stunningly gorgeous, a rainbow riot of neons and pastels. We spent the first two days just marvelling at the basics, and then started trying to hunt out some more exotic critters. Below are a few of the best ones we saw. These are all stolen photos from the web, but let me give credit to one stunning photographer, Marc Occhio, who took the Blue Marlin shot below.

The pipehorse is a relative of the seahorse. We saw greyish ones, usually totally straight and looking more fishlike. Quiet and gentle.
Lobsters! We saw plenty of full-size adults, hiding out under rocks in shallower water. Sighted on the west side of Half Moon Bay and a few of the sites west of there.
Lionfish are Asian invasives, aquarium escapees that are apparently causing a lot of damage in the Caribbean. They have a unique way of pinning prey against the coral by making a cage with their spines. Local diveshops vent their anger by offering lionfish barbecues, cookbooks and bounties.
Sea turtles: graceful and shy. The first was in the shallow seagrass, and bolted when it saw me. The second was in 5m water and didn’t object to us at all. The third and fourth were in deeper 15m water, spotted deep on the coral wall at the West End Wall. Definitely a magic moment
Spotted eagle ray: also awe-inspiring, with about a 1.5m wingspan. We spotted this one gliding along the edge of a reef wall in 5-10m deep water, looking serene and gorgeous. J was a bit surprised by it during a dive, and was a bit freaked out by it.
Green moray eel: midway through the trip, we started to see the predators. This guy was about 1.5m long, coiled around a rock on the bottom in 5m deep water. He didn’t move much, but his jaw looked frightening. Morays are awesome for being the inspiration for the “Alien” mouth design: they have two jaws, and when they open the outer jaw, an inner jaw with a second row of teeth darts out and pulls the prey in. Textbook learning did not translate into any freaky viewing, though.
Blue marlin. We saw juveniles about 60cm long in the shallows, zooming about just below the surface. They definitely looked like predators, but didn’t seem to care about us much, being far outside their prey size range. Very neat.
Barracuda are unnerving. In the Blue Channel area, we saw an adult hiding in a recess in the reef and a juvenile swimming nearby, and wondered a little – they’re pretty scary looking predators. That night, Wikipedia told us that they scavenge and rarely attack, but often unnerve divers due to their curiosity. It’s not uncommon for them to follow a diving group for their entire time. They sometimes mistake hands for little fish and attack, especially with shiny jewellery. So, we left our wedding bands at home the next day – and met some serious barracuda at Sandy Bay. A 1.5m adult met us in the 2m deep seagrass, and circled us about seven times, staring closely. Our Wikipedia-acquired knowledge felt a little… inadequate, but we held to it and edged slowly towards the main reef, where the barracuda didn’t follow. Freaky. I wouldn’t accept Wikipedia as a source for an undergrad essay, but I was taking life and death information from it… hm.  The next ones were less interested in us, we did spot a juvenile swimming right next to the kids’ section of the beach at West Bay.  I have to wonder if parents know what’s in the water.
Mahi mahi (dorado, dolphinfish): I spotted a 1.5m – 2m long fish that looked like this in the deeper 15m waters off of West End Wall. Didn’t really see enough to say much, though.
One hilarious fish was a big (1m+) reef-muncher. Every time he chomped down, you could hear the teeth-on-coral sound quite loudly.

Getting deeper into snorkelling was interesting in its way. Novice snorkellers just stay on the top, and don’t see any of the vibrant colours once the water gets deeper than 3-4m. If you’re willing to hold your breath and dive down, you can see the reef surface in the same detail that scuba divers do, in 10 second bursts between breaths. By the end of the trip, we were able to dive down to 8-10m regularly – I was cruising the reef wall at 5-6m depth, rising and descending regularly for breath, and swimming in the schools of undisturbed fish.

It seems to be a bit of a continuum between snorkelling and freediving, actually. This type of snorkelling starts to fill almost yoga-like in the emphasis on breath control, and the breath control pattern definitely helps the mind and adds to the mood of it.

Finally, I think the real magic of reefs is the ability to see animal life up close. On land, humans look like classic predators (forward facing eyes, etc.) and are recognized as the top predator; animals are skittish and it’s rare to encounter much of anything. But in the ocean, fish can dart away from many predators easily, don’t really recognize humans as the top of their food chain and are basically unafraid of us. It’s a pretty unique experience.

Honduras 1: Roatan

We settled on an unlikely honeymoon theme: an obscure destination with lots of hiking and exercise. Why Honduras? Because it’s next to Belize, which J had quite liked at age 14. Because it’s off the tourist map. And because of Roatan.

Roatan is the largest of the three “Bay Islands” off Honduras’ Caribbean coast. Its huge coral reef makes it a world-class scuba destination, which hooked us after discovering we loved reef snorkelling in Cuba. (More details on this in a later post.) Charter airline Sunwing has just introduced a weekly direct flight between Toronto and Roatan, and it’s no further than Las Vegas.

Pearson airport at 4:30am was flooded with Caribbean-destined charter airline passengers, mostly of the old and/or fratboy variety. Most debarked for Mexico, leaving a more adventurous group on our plane. We were on the only plane arriving at Roatan airport that day, and 80% of the crowd quickly dispersed into resort-run buses, with the independent travelling 20% hopping into taxis (and we tried public transit). Roatan caters primarily to the resort and diving crowds – and the crowd thus thins even further if you head elsewhere in Honduras. In the later stages of the trip (four days in mainland Honduran cities and countryside), we saw only about ten white people.

Roatan’s a curious cultural mix. In the resort and diving communities today it’s an affluent and safe environment, less polished and crowded than the major Caribbean resort destinations, but similar in feel to some of the places I’ve seen (Varadero, Cuba and Cartagena, Colombia). This influx of tourism only began in earnest in the last decade, though. The prior inhabitants of the island are largely English-speaking black Caribbean, descended from marooned Jamaican slaves. The modern accent is the classic Caribbean-inflected lilt. Tourism has attracted a large influx of Spanish-speaking Hondurans, which must cause some internal rifts and tensions, but also clearly some prosperity and development.

And development is sorely needed. Honduras is a very poor country, and Roatan is only beginning to escape this. GDP per capita is one-tenth of the US, and Honduras’ violent crime is amongst the highest in the world (but dominated by drug violence in the big cities in the southwest). We saw the poverty within an hour of arriving, as our rickety transit minibus bounced along the rutted dirt road into the worker’s community at Sandy Bay. Mangy dogs ran the streets, chickens clucked loudly and small tin-roofed huts lined the way. Crisply-uniformed schoolchildren showed the community pride’s and hopes, but the place is clearly impoverished. Most visitors whisked briskly by taxi from the airport to shiny hotels and never see this side of the island, but it’s there for those who choose to look.

It took a while for us to get the feel of the country’s time. Despite being due south of Thunder Bay, it’s two time zones later. The tropical day is only twelve hours long and most activity winds down at 6pm when the sun sets, likely a legacy of formerly dangerous night-time streets. As a result we found ourselves rising at dawn most mornings, which qualifies as a holiday first for me. We stayed at Land’s End Resort, run by a charming Austrian expat. It was comfortable, attractive and had some affordable rooms, plus immediate access to the reef.

We spent about a week on Roatan in total, split between the start and end of our two-week vacation. In our first days, we found the island expensive. Most restaurants on the main street of our town (West End) had prices similar to Canada ($10-$20). We ate cheaper, mostly in the $5-$10 range, which bought tasty fish tacos and “tipico” Honduran meals of chicken, plantains, beans and rice. By the end of the trip we were a bit more savvy and had a better sense for the pricing: while the tourist towns were mostly pricy, there were always a few tipico restaurants aimed at the service staff, often with decent meals to be had for $5. Outside the tourist towns, supermarket prices were cheap and not too much more expensive than the mainland.

We only saw a fraction of the island in total. Tourism is focused intwo western communities, West End and West Bay, and spilling over to the nearby towns of Sandy Bay and Flowers Bay. The rest of the 50km island is less populated; the eastern half doesn’t even have any bus service. Our quest for snorkelling sites took us on road walks to the sleepy tourist section of Sandy Bay and to the posh West Bay. En route, an overgrown sideroad caught our eye, hinting at the jungle we’d see later on the mainland, but we turned back feeling unprepared after seeing a fist-sized gloriously hairy spider. Our minibus trips took us through a few other areas: the dirt roads of the workers’ section of Sandy Bay, and the charmingly named commercial hub, Coxen Hole.

In one of the next instalments, I’ll cover our main activity in Roatan: the reef.

Meanwhile, check out some of our photos from Roatan.

A dancing mix

My new music intake rate is still quite low. This year did involve some time digging through the crates for the most danceworthy music for the wedding, though. That process fed about 70% of the content in this mix, although very few of these tracks actually got played at the wedding.

We have gone to the Hillside festival the last two years, but I haven’t been quite as inspired by the acts as I was during my first visit to the festival. Patrick Watson and Holy Fuck are the two most notable exceptions, both delivering great sets.

There’s a heavy acid jazz / nu-jazz component to this mix. I have a particular soft spot for two of the final tracks here. The atmosphere of the Kruder & Dorfmeister Lamb remix is a little over-the-top, but remains my favourite acid jazz track of all time. The Herbaliser’s live rendition of “The Missing Suitcase” has been in my collection for a decade, but never really caught my full attention. The wedding hunt brought it to the foreground as a great, danceable, organic jazzy track – and dancing to it at the wedding with friends was a highlight for me.

So, download the mix here (for a few weeks only). The tracklist is below, also with the album/compilation where I first heard the tracks.

  1. moondog. bird’s lament [henrik schwarz remix]. jazz + house, from dj-kicks – henrik schwarz compilation, 2006.
  2. omar-s. flying gorgars. techno, from fabric 45, 2009.
  3. the crystal method. blowout. big beat, from tweekend, 2001.
  4. radioactive man. uranium. electro, from andrew weatherall – from the bunker (a rotter’s golf club mix) compilation, 2007.
  5. the soft pink truth. promofunk. electro, from colette no. 5 compilation, 2003.
  6. erlend øye. sheltered life / fine day. electro, from dj-kicks – erlend øye compilation, 2004.
  7. daniel lanois. i love you. pop, from shine, 2003.
  8. patrick watson. tracy’s waters. rock, from wooden arms, 2009.
  9. radiohead. 15 steps. rock, from in rainbows, 2007.
  10. skalpel. quiz. acid jazz, from skalpel, 2004.
  11. thunderball. solar. downtempo, from modular systems compilation, 2001.
  12. caribou. jamelia. electronic / rock, from swim, 2010.
  13. holy fuck. stay lit. rock, from latin, 2010.
  14. gorillaz. feel good inc. rock / hip hop, from demon days, 2005.
  15. povo. uam uam [moonstarr remix]. acid jazz, from future sounds of jazz vol. 10 compilation, 2005.
  16. the herbaliser band. the missing suitcase [session one]. acid jazz, from session one, 2000.
  17. lamb. trans fatty acid [k&d session]. acid jazz, from kruder & dorfmeister – the k&d sessions compilation, 1998.
  18. portishead. the rip. trip hop, from third, 2008.

Passive Portfolio Performance, 2010

My post last year on my passive portfolio generated a lively conversation, so I thought I’d follow up with a few further thoughts on investment over the last year.

But first, a quick glance at the performance of the portfolio I showed last year:

Weight Asset
Weight
Return
2009
Return
2010
Return
2009-10
Equities
   U.S.A. VTI 42.3% 11.2% 10.2% 22.5%
   Europe / Pacific (developed) VEA 40.4% 10.2% 1.9% 12.3%
   Emerging VWO 7.3% 49.7% 12.3% 68.1%
   Canada XIC 10.0% 34.1% 17.2% 57.2%
Subtotal 70% 15.9% 7.7% 24.9%
Fixed income
XSB 25% 4.2% 3.2% 7.5%
Cash 5% 0.0% 0.0% 0.0%
Total Portfolio 12.2% 6.2% 19.2%

Basically, a slower year: 6.2% return overall, with none of last year’s extraordinary post-recession performances, and a drag from the various European crises (VEA).

This is, however, no longer my target portfolio. I’ve made a few minor adjustments:

  • Doubled the Canadian component of the portfolio from 10% of equities to 20%, to take advantage of tax benefits. Dividends from VTI, VEA and VWO all incur U.S. withholding tax in my non-registered and TFSA accounts (but not in my RRSP).  By contrast, dividends from Canadian stocks result in reduced tax in my non-registered account and no tax in my TFSA.
  • I’m now treating XIC (an ETF) and TDB900 (a TD e-series index fund) as interchangeable ways of buying into the Canadian market.  I use TDB900 when I’m making small regular contributions, and XIC for large $5000+ purchases.
  • I haven’t found an equivalent low-cost index fund for the other parts of my portfolio.  I’m particularly cautious about the tax effects of holding Canadian-based funds that just buy an underlying American security.
  • I’ve changed my asset mix to lower the total level of bonds from 25% to 15%.  This follows a discussion last year with both Chris and Jordan suggesting 0% bonds for a young person.  I read Jordan’s suggested book, Milevsky’s Are You a Stock or a Bond? and found it very convincing – my future income stream is already very “bond-like” and really doesn’t require me to own much further bonds in my portfolio. That said, I’m still reluctant to buy stocks on margin, as the book suggests for my situation.
  • On real estate, I’m feeling more comfortable with my current rental situation.  Milevsky has a new book out (excerpt here) with a bit more discussion of real estate. The core of his argument is that real estate performance is closely correlated with the economy of a metropolitan region – and therefore closely correlated with your own future job prospects and future income stream.  Owning a home while young can therefore result in too little diversification in your portfolio, if you include your future income as part of the “full” portfolio.That said, there are many other benefits to home ownership: full control over your environment, a greater range of home choices in the Canadian market where rental pickings can be quite slim, and even a guarantee of non-eviction from a fickle landlord (I’m thinking of Eddy & Angela, who were evicted while 8.5 months pregnant, perhaps so the landlord could avoid having a noisy baby in the building).  But for the moment, I don’t personally feel that I need to own a house… yet.

Finally, I’ve heard a few interesting other reading points over the last year:

  • Hendrik pointed out an article comparing the full return associated with bond ETFs versus holding actual bonds, noting that “return” is more important than alleged “yield.”
  • I looked into (commercial) Real Estate Income Trusts (REITs) briefly, but decided not to buy. There are arguments over whether real estate is actually a “new asset class” distinct from equities. But more importantly, I found a great, detailed, statistics-packed article from Vanguard on the subject.  The article closes with a list of propositions that they suggest an investor should “buy into” in order to justify REITs… and I just wasn’t sufficiently in agreement to add REITs as a separate group in my asset mix.  That said, if I was buying REITs, I’d probably aim to go beyond Canada – the Canadian REIT index is little more than a handful of stocks.

So, that’s my update on finances.  Any reactions?