Multi Currency Miracle – 41% Gain in 6 Months With Yen


See a multi currency miracle… how readers gained over 40% in just six months by borrowing Japanese yen to invest in the Dow.

Our business has been looking for breakouts over the last 45 years.

We continually look for breakouts because economic breakouts create fortunes.

Merri and I have been able to help readers have better lives, less stress and to make fortunes during these last 17 economically depressed years.  Yet the simple fact is that the really big profits come at the start of a breakout.

We can see the power of breakouts from the last BIG ONE in 1979.   Warren Buffet saw it coming. He mentioned it in a famous 1979 Forbes article “You Pay a Very High Price in the Stock Market for a Cheery Consensus”.

Everything looked bleak.

The 1980s recession, the worst since the Great Depression, was about to begin.   Yet in 1979 Buffet said…. BUY NOW.   On August 13, 1982 the biggest global bull stock market in history began.

The Dow’s 1982 to 1999, relentless 17 year climb is just one breakout we can see.

dow-stock-chart

Click to enlarge.

1979 was the darkest hour.  The herd was thinking negatively.   The reality?  A boom was on!   Then in 1999 another economic contraction began and has been with us till now… 14 years.   The cycle is repeating.  This is the beginning of an even bigger boom.

“Its not what’s happening that counts. It’s what you do with it.”

One tactic we always review is our Borrow Low Deposit High Multi currency expectations.  This  strategy always contains two profitable breakouts… one in forex rates and one in positive carry.

Few decisions are as important to your wealth as WHICH CURRENCIES to invest in.  This has been our area of expertise since the 1970s… and we have worked with Jyske Bank…. one of the largest currency traders in the world  for over 25 years.  Beginning in October we are combining Jyske’s expertise with that of ENR Asset Management a Canadian investment management company that has created a program so Americans so they gain multi currency investments as well as Canadian and Danish banking safety.

Learn how to gain currency diversification and how to leverage returns with low cost multi currency loans.  

Here is an example of what this means.

We updated our December 2012 borrow Japanese yen signal at our 2013 start of the year seminar.

In the next six months the US dollar rose over 13% against the yen.

finance.yahoo  chart

Yen dollar chart at www.finance.yahoo.com

Readers who followed this call picked up a 13% forex profit plus their positive carry.

The positive carry is the return on the invested loan.  Here is when borrowed yen were invested into a Dow Jones Industrial ETF for this six month period.

yahoo finance chart

Click on charts to enlarge

On December 12, 2012 one USA dollar would buy 82 yen.

Here are the invest loan interest rates from Jyske Bank in affect in January 2013.

JGAM Loan Rates

In this example $100,000 is invested and used as collateral to borrow $100,000 worth of Japanese yen at 2.50%.   The rate was 82 yen per dollar so to get $100,000 8,200,000 yen was borrowed.

The $200,000 was invested in a Dow Jones Industrial ETF… a mutual fund traded on the New York Stock exchange.

The ETF rose, along with the Dow, 12.85%

The Dow as shown in this chart rose over 12% from January to July 2013.http://www.flickr.com/photos/garyascott/9225962354/

www.finance.yahoo chart

The loan cost per year is $2,500 (2.5% on $100,000).    The $200,000 portfolio rose 25,700 (12.85% of $200,000).  In other words the $100,000 originally invested grew $23,200 in six months.

That is the positive carry without the forex profit.  Plus there is a forex gain as well.

By July a dollar would buy 100 yen!

To pay off the 8,200,000 loan would have cost $82,000 at the rate of 100 yen per dollar adding another $18,000 of profit.
The portfolio is worth $223,200 less $82,000 loan payoff or $141,200. That translates into a total six month profit of 41.2%.
This return is diminished by one time, upfront loan set up costs of about $1,000, plus any trading and forex fees but the six month return in this frozen moment of time would remain around 40%.
There is still potential in this position though risk have increased.   A shift from 82 yen per dollar to 117 yen per dollar is a 35% yen drop.
That is the upside.  For a loss of the same magnitude the yen would have to rise from 82 yen per dollar to 53 yen per dollar… a highly unlikely event. However at the course you’ll learn how to calculate profit and loss potential and why you should never leverage more than you can afford to lose.
The figures above are used for illustration purposes only. These are not recommendations as recommendation portfolios would be far more diversified and values change with market and currency shifts.
The Multi Currency Sandwich is not a fast trading tactic.  Normally positions are looked at with a five year view and we have tracked this powerful long term strategy for more than 20 years.

 

A very positive evolution has now taken place.  JGAM announced the transfer of that management role to ENR Management in Montreal, Canada as of September 13, 2013.

 

Here is why I am delighted to see this new service.

 

First, before I explain why Americans gain seven benefits from this change, let me hasten to say that all managed assets will remain at Jyske Bank in Denmark… as the custodian.

 

Yet the transfer of the management role to Montreal brings these seven positive benefits.

 

Benefit #1:  Assets are now managed and regulated not only through the Securities Exchange Commission, but through two of the world’s safest banking communities in the world, Canada and Denmark.

 

Here are the Top Seven Safest countries to bank in based on the World Economic Forum’s Global ranking index.

 

World’s Soundest Bank System Rating:

 

1.    Canada
2.    Sweden
3.    Luxembourg
4.    Australia
5.    Denmark
6.     Netherlands
7.     Belgium

 

Benefit #2: Advisory clients will be able to have more control and input in their accounts and choose a larger variety of investments.

 

JGAM as a Danish company had to follow US and Danish securities regulations which inhibited the ability of JGAM to allow clients to select individual shares.  This rule will not inhibit as many investors when assets are managed from Canada.

 

Benefit #3: Minimum balances will be lower. I understand that the new minimum will be $100,000 compared to the previous minimum of $200,000.

 

Benefit #4: Fees on smaller accounts will be lower.  JGAM’s fee on smaller accounts was 2%. ENR will charge 1.5%

 

Benefit #5: The managers will be physically closer.   No matter where one lives in the USA,  Montreal is closer than Copenhagen.  Those of us on the U.S. East coast will get to visit our investment mangers without jet lag.

 

Benefit #6: Montreal is my favorite North American city. Though Copenhagen is one of my favorite European cities,  Montreal is also great… North American efficiency with European style.

 

Screen shot 2013-06-06 at 3.55.21 PM

 

Montreal skyline.

 

Benefit #7:  Great people to deal with.  Thomas Fischer will join ENR so we get to continue working with him. We get the added benefit of Eric Roseman.  I have known Eric, the head of ENR, even longer than we have worked with Jyske.   Eric is the perfect example of a student who raced ahead of his teacher.   Eric gained some of his first inspirations to be a multi currency investment manager as one of my readers in the 1980s.   He wrote to me: “You are like my Jedi Master and I’m the apprentice. Learned so much about investing from you when I first got started.

 

His investment management skills as an investment manager have evolved far beyond mine so I will be very pleased to have him help manage my multi currency retirement account with ENR.

 

Thomas Fischer will be on the ENR investment committee and available to talk with clients.

 

For more information contact Thomas Fischer at fischer@jgam.com

 

See ENR Management’s website at www.enrassetmanagement.com

 

Non US clients will continue dealing direct to Copenhagen with Jyske Bank Private Bank as always. Non US investors contact Henrik Bøllingtoft Henrik.boellingtoft@jbpb.dk

 

Wherever you live do not trust any one bank, any one country, any one currency.  A financially sound retirement depends on banking in safe countries and holding strong currencies.

 

Gary

 

 

 


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