Investors need to study and know global investing, real time…not just in theory.
Over the past four decades our lives have been consistently improved as technology has allowed an expanding global economy. This has been god for almost everyone but forces every investor to know more about which currencies are most likely to rise and fall.
“Borrow Low – Deposit High” – The Gary Scott – Jyske Bank Multi Currency Investing Course is a primer to international investing
Why be a multi currency investor?
The answer to this question and the roots of our multi currency course began over 40 years ago. I had been traveling since 1968 throughout Asia, an investment adviser helping Asians invest in the US.
Here is my first passport. I began in Hong Kong…1968.
I entered Singapore on May 5, 1971 with a seven day visa, May 12, 1971.
Little did I know that this was the week that would change the world.
The Raffles back then offered a great outdoor restaurant just next to the Long Bar (home of the Singapore Sling). There was something comfortable in the old fashioned pots of thick cut marmalade and slightly burnt toast that stood in racks of sterling silver. This elegant setting and the quiet service was an easy, wonderful way to start the day. I felt in place, relaxed and comfortable, part of an ancient tradition, the modern link in a rite that this hotel had offered for so many generations past. I sat back feeling that all was well. I felt in control and on top of that modern era.
That suddenly changed as I was about to learn a serious lesson about international currencies.
I opened the morning Straits Times and the headlines declared “U.S. Dollar Devalues”.
That comfortable era had just come to an end. International currencies were in turmoil.
That day, when the dollar devalued, money changers would not take the greenback. I couldn’t pay for my hotel. I couldn’t even pay for breakfast and I was 12,000 miles from home. Was I ever scared!
Since that day I have never trusted the US dollar or any other single currency. This has reaped rich rewards. Betting against the US dollar (as I have again and again over these three and a half decades) has been exactly the right thing to do. As the chart below sows the greenback has lost about 75% of its value against other major currencies.
The chart below from Grandfather.com shows how much the US dollar has fallen for almost 40 years.
The US Dollar May Fall…More
A falling US dollar destroys the purchasing power of Americas and destabilizes currencies everywhere.
What currencies should an investor hold?
The answer to this question is one that can create fortunes or can ruin an investor’s financial well being. Yet there is no continual correct answer. A good currency balance continually changes!
This is why I, with the aid of Jyske Bank, have created an online multi currency course with three goals.
#1: Help subscribers improve creative skills for developing global investment ideas that serve specific, personal needs.
#2: Help investors learn how to stick to good ideas and get out of their bad ones.
#3: Help investors understand multi currency investing because as you will see below…we need this ability more than ever now.
Jyske Bank is the second largest Danish bank with 450,000 domestic clients, 35,000 international clients, USD 23 Billion in total assets, and a Moody’s rating of AA1. Jyske has over 35 years’ specialization in private banking. Denmark is ranked by Moody’s as one of the safest country in the world to have bank accounts.
Jyske Bank uses a good value system to select global investments. Their affiliated fund management company has been rated #1 by Morningstar. They use this value system to help us select shares for our Multi-Currency Portfolio Course.
Jyske’s help in selecting and tracking global shares and bonds has worked well. In 2006 the emerging equity portfolios we created to track and study rose 42.93%. The Asian portfolio we created rose 114.16% in a year.
Here I am speaking about multi currency investments at a Jyske Bank seminar in Copenhagen.
Here is the final 2007 one year performance of the portfolios we created and tracked with Jyske Bank.
“Portfolios 2007 Oct 31
Swiss Samba + 53.32%
Emerging Market + 122.62%
Dollar Short + 48.19%
Dollar Neutral + 38.67%
Green + 266.30%
However the 2008 portfolios we tracked dropped dramatically. This is good because our course warned the readers that the crash was on its way.
Our warnings before the 2008 crash are a matter of record.
A warning sent on August 17, 2007 said: Such historical measures are so inexact that we cannot predict just from them what will happen in the short term. The numbers are close enough that we could be entering the fourth sub cycle down (similar to 1976 to 1978). If so expect a sustained drop in markets for two to three years. See http://www.garyascott.com/2007/08/17/1818.html
Our September 21, 2007, message said: equity markets dropped again violently last month. Now these markets have recovered again. Yet this may be a last gasp party. This drop of interest rates at a time when inflation is beginning to soar could lead to a rapidly falling US dollar. We can see from the chart here that the dollar has done almost nothing but drop for 40 years (that chart is below). Yet much more dollar dropping could be in store.
The October 14, 2007 message stated: Periods of high performance are followed by times of low returns. We never know for sure when an upwards cycle will stall. Fundamentals look good for a bright 2008 in emerging and equity markets, but this can change quickly so to give our readers a better perspective, this year we are reducing leverage and adding a sixth portfolio with no leverage to study. http://www.garyascott.com/2007/10/15/1840.html
Oct. 15, 2007 we wrote: Okay it’s time to turn the burner down.” http://www.garyascott.com/2007/10/14/1839.html
We offered a “leverage dwindling” warning on Oct. 26 where I explained to readers that I had eliminated even my modest leverage and wrote: There is a final reason I liquidated my leverage now…to lead by example. Too many readers are thinking that the dollar short or dollar neutral Portfolios are only up 38% or 48% for the year. When one thinks that way they could be headed for trouble, so I hope investors will follow my lead and take greater care with their leverage. http://www.garyascott.com/2007/10/26/1852.html
The November 8, 2007 Black Friday interim message warned about all the points above and more. http://www.garyascott.com/2007/11/08/1870.html
So the 2008 drop did not surprise existing subscribers, nor should it have taken any investor by surprise… if they had studied our multi currency investing course.
2009 was better. Through November 2009, the return of Jyske Global Asset Mangement’s managed portfolios ranged between 12.2% and 34.4% depending on the level of risk because Jyske offers, low medium and high risk managed portfolios without and without leverage.
For example here was the breakdown of the low risk managed portfolio in 2009.
Asset Type Currency % of Portfolio
8.000% *Mobile Tele 2012 USD 3.96%
5.800% E.ON 201818 USD 6.28%
4.875% E.I.B. 2036 USD 5.02%
7.250% Bombardier Inc. 2016 EUR 4.52%
7.800% Gaz Capital SA EUR 3.20%
6.000% Carlsberg 2014 EUR 7.49%
4.875% Veolia Environment 2013 EUR 7.15%
4.875% AP Møller-Maersk 2014 EUR 3.62%
5.750% Japan Tobaco 2013 GBP 6.93%
6.000% EIB 203 AUD 7.76%
12.500% Brazil Rep. 2016 BRL 5.93%
No. 1 Savings Account NOK 7.20%
No. 1 Savings Account MXN 4.11%
No. 1 Savings Account CAD 2.02%
Novartis AG Reg. CHF 2.59%
Electricite De France EUR 1.83%
Siemens AG EUR 3.52%
Bayer AG EUR 2.55%
G4S Plc GBP 2.58%
iShares II BRIC GBP 2.71%
Jyske Invest IT Equities USD 1.97%
ETFS Metal Secs Physical Gold USD 4.98%
Cash: USD 2.07%
Our Multi Currency Course helps you learn from global portfolios as they rise and as they fall.
Jyske Bank is one of the few global banks that is registered with the American SEC. This makes it easier for American investors to use the bank’s global services.
Here is Thomas Fischer of Jyske Bank speaking at one of our multi currency courses at our seminar center, Merrily Farms, in North Carolina.
Our material and financial well being is driven by an expanding global economy that over the past 40 years has dramatically changed the way currencies work. Today good investors have to understand more than a stock bond or real estate market. They must also know which currencies are most likely to rise and fall.
Join Merri, me, with Thomas Fisher of Jyske Bank to learn more on international investing Feb. 11-14, 2009 at our International Investing & Internet Business seminar, in Mt. Dora.
You can also join our group and travel to Ecuador after the Mt. Dora seminar.
Feb. 15-16 Travel to and visit Quito
Feb 17 Travel to Manta
Feb. 18-19 Coastal Real Estate Tour
Feb. 20 Travel to Cotacachi
Feb. 21-22 Imbabura Real Estate Tour
Feb. 23-24 Quito-Mindo Real Estate Tour
Feb. 26-27 Cuenca Real Estate Tour