Multi Currency Portfolio 2008 Valuable lesson


Multi Currency Portfolios give us a valuable lesson with our new infrastructure portfolio. The lesson is about investing in value.

You can see in our latest major market value update that all the good value markets are in Europe. See http://www.garyascott.com/2007/11/19/1880.html

Hold that thought.

There are many reasons to believe in an infrastructure portfolio.

For example a multi currency subscriber from Canada just sent this note.

“Hi Gary and Merri, I just wanted to let you know how right on Gary was with his infra structure prediction. It has been in the news papers and on radio this week in Canada that it will require 123 Billion over the next 5 years to rebuild Canada’s infrastructure which is considered 80% done its life expectancy. Just in Ontario for bridges alone it is in the billions.
All the Best!”

Canada is just one country as well, so many businesses are looking at this sector. Credit Suisse and General Electric began a US$1 billion global infrastructure joint venture.

They said “The joint venture, which Credit Suisse plans to form with GE Infrastructure, intends to invest in energy and transportation infrastructure assets worldwide. Each party plans to commit US$500 million to the joint venture. Targets will include power generation and transmission, gas storage and pipelines, water assets, airports, air traffic control, ports, railroads and toll roads. The infrastructure joint venture estimates the market opportunity at US$500 billion in developed markets and US$1 trillion in emerging markets over the next five years.”

Yet portfolio update #2 sent to you November 17, shows that the Infrastructure Portfolio we created with Jyske Bank and will track this year did not get off to a good start. It is down over 16% in the first two weeks.

Yet this drop is a statement about panic in global markets and the negative aspects of leverage.not a condemnation of the idea.

Here is the Infrastructure Portfolio and its development since November 1, 2008.



Currency
Investment 
Purchase Price
Invested
Value
DKK
D/S Torm
215.56
50,000.00
47,076.77
DKK
FLSmidth & Co.
559.80
50,000.00
43,800.89
SEK
ABB Ltd 
191.00
50,000.00
46,859.93
EUR
Siemens AG
93.65
50,000.00
53,533.93
JPY
Komatsu 6301
3810
50,000.00
47,251.61
EUR
Veolia Environ
61.99
50,000.00
52,444.30
Total Invested
300,000.00
290,967.44
Loan
Interest
Borrowed
Payoff
Interest
JPY
2.750%
100,000.00
103,762.90
166.45
CHF
4.375%
100,000.00
103,445.04
264.00
Total Loan Payoff
207,471.93
83,495.50
Loss 
-16,504.50


Now back to the thought on value.

Here is the lesson on value. During this market panic four of the six portfolio investments dropped. Two did not. They rose…a lot! Both were European shares listed in good value countries.

The lesson is that the best protection we can get in times of turmoil  are investments in good value.

See again my personal portfolio breakdown at http://www.garyascott.com/2007/11/18/1879.html

Notice that only 7.5% of my portfolio is in equities but over half of this (4.5%) is invested in European shares.

Bank of Fl Shares USD 1.5%
Jyske Bank, Shares DKK 2.5%
Jyske Invest Turkey EUR 1.5%
JI European Equity EUR 2.0%

The JI European Equity Fund is held specifically for this reason…the underlying investments are almost all in good value markets.

Until next message may all your investments have extreme good value.

Gary

Join us for our next International Investing Course. Our course fee is rising for our 2008 courses. Since we have had only one price increase  in over 20 years we are forced to make a substantial increase now.

We are accepting early enrollments for our 2008 courses at the 2007 price for about two more weeks so if you sign up now, you’ll save.

Mar 7-9 International Investing and Business Made EZ Ecuador.

The current fee of $549 will rise to $799 and for two from $749 up to $999.

IBEZ plus the Mar 10 -11 Imbabura Real Estate Tour.

The current fee of $899 will rise to $ 1,199 and for two from $1,199 up  to $1,599.

IBEZ plus the March 10 -11 Imbabura and March 12 -14 Coastal Real Estate Tours.

The current fee $1,199 will rise to $1,499 and for two from $1,599 up to $1,999.

The current prices will last only for early enrollment in November.
Enroll
and save at http://www.garyascott.com/catalog/international-business-made-ez-ecuador


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