See three problems in three years and how to profit from a $10 billion war chest being built by major banks… what to do now that the fiscal cliff has been avoided and insights on how to invest during the looming battle over gun rights.
We had an unexpected high number of enrollments for next week’s Super Thinking + Investing and Business Seminar. What a great opportunity! The problem? Our scheduled meeting room was too small. Like a cascading fractal… life’s problem’s created by opportunity create more opportunity. This is the exponential power of positive!
In this case, the problem of a larger meeting hall brings opportunity in Eustis. Florida.
Merri and Mah at the Lake Eustis Park in Old Eustis.
This site has posted many messages about real estate value in Florida and especially in Lake County.
Like Ecuador… Florida real estate has one really big advantage… sunshine. Plus Florida real estate prices fell more than in many areas of the US… so they will rebound higher.
This creates a special opportunity we’ll look at in a moment. First back to Eustis…. because there is a special little known potential there in the name of the Lake Community Foundation.
In 2004, Florida Hospital Waterman relocated to a new site and donated its Eustis property to the Foundation. The revenue from the sale/redevelopment of the property is designated for charities and a comprehensive plan has been created.
The area is developing nicely but there is one large parcel (C) not yet sold and designated for a hotel.
This and the fact that Eustis is one of the few cities that has not allowed development along the waterfront makes it extra attractive for its small town (15,000 population) and natural feel.
Merri and I have been buying real estate in this area for over three years now. We took a stroll along Lake Eustis visiting restaurants.
While our friends and readers in the north and Pacific Northwest were struggling in the cold and snow, we enjoyed mid 70s and clear skies.
We dined outside at the Lake Eustis Deli.
There are numerous picnic tables and this is a perfect place for a casual lunch.
Eustis also offers some exceptional real estate values already without the little known benefit.
For example this house is offered for $199,000.
This is near the lake.
Here is a photo I took (with a telephoto lens) the six blocks from this house to the lake.
Yet it has been on the market for a year and I suspect it will sell for less.
We have asked our friend and real estate broker, Shirley Peacock, to have a list of Eustis properties for sale and to be available for seminar delegates.
We will look at how to spot value in problems at this weekend’s Super Thinking + Investing and Business seminar.
Here are a few examples we’ll review of recent problems and our positive take on each.
#1 Problem: Real Estate Collapse and hard to get mortgages. Winning Idea: Invest in real estate for rentals
A January 22, 2013 article in USA Today entitled “Rental Investors pant for next hot home market” tells how home shoppers are now seeing multiple offers, bidding wars and shrinking supplies of homes for sale as investors swoop in.
Major institutional investors are amassing a $10 billion war chest to pursue the single-family rental market, JPMorgan Chase estimated in a recent research report.
This site posted an article about investing in rentals in December 2011. Here is an excerpt.
Rentals are rising from the ruins.
From November 5, 2011 Economist article linked below “Rising from the ruins”
This site has promoted the idea of investing in necessities at this time… food… agriculture… shelter.
This site has always promoted the idea of having assets in more than one country.
Let’s look at why rental opportunities in North America must grow.
Excerpts from a November 5, 2011 Economist article “Rising from the ruins” explains why” The housing market still looks grim, but the rental side hints at recovery
THERE are two things everyone knows about American economic recoveries. The first is that the housing sector traditionally leads the economy out of recession. The second is that there is no chance of the housing sector leading the present economy anywhere, except deeper into the mire. In the two years after the recession of the early 1980s housing investment rose 56%; it is down 6.3% in the present recovery. America is saddled with a debilitating overhang of excess housing, the thinking goes, and as a result is doomed to years of slow growth and underemployment.
The economic landscape is unquestionably littered with the wreckage of the crash. Home prices languish near post-bubble lows, over 30% below peak. The plunge in prices has left nearly a quarter of all mortgage borrowers owing more than the value of their homes; nearly 10m are seriously delinquent on their loans or in foreclosure. The hardest-hit markets are ghost neighbourhoods, filled with dilapidated properties. Housing markets are far from healthy. Yet current pessimism seems overdone. A turnaround in sales, prices and construction may be closer than many imagine.
Rental markets, by contrast, look far stronger. America’s rental vacancy rate stood at 9.8% in the third quarter of 2011, down from a high above 11% in 2009. Vacancy rates in some cities are strikingly low—2.4% in New York City, for instance, and 3.6% in San Francisco—which translates into rising rents. Nationally, rents rose 2.1% in the year to August, in stark contrast to house prices (see chart 2).
Strength in the market for rentals is beginning to seep into the more troubled owner-occupied sector. Rising rents help housing markets heal on both the supply and demand side, by encouraging renters to consider buying and through the movement of supply into the rental market, easing the glut of houses for sale. The Obama administration hopes to take advantage of better rental conditions to unload some of the more than 200,000 foreclosed-on homes held by the two government-sponsored mortgage giants, Fannie Mae and Freddie Mac, and the Federal Housing Administration (which account for roughly half of all such inventory), on to investors who may rent the properties out.
Rental-market strength is also rousing a long-dormant building industry. New housing starts rose 15% from August to September of this year, driven by a 53% surge in new structures containing five units or more. In the three months to September construction employment rose by 29,000 jobs. The sector is still some 2.2m jobs below its pre-recession peak, and new hiring there would help a dismal labour market.
Problem #2: The Fiscal Cliff. Winning Ideas: Borrow Yen. Invest in dollars. The cliff was bound to be avoided and the dollar to rise. The yen was obviously too strong.
A December 12, 2012 message at this site said: Yen leverage has remained a wonderful overall long term strategy for 20 years. Yen interest rates have normally been near or under 3% for 20 years! Any loan that was invested for more than 3% enjoyed pure extra profit!
Now the yen is too strong again (in my humble opinion). Plus as you see below yen interest rates now are as low as 2%.
If I am correct, this is a good time to short the Japanese yen.
There are two easy ways to make this short yen speculation… one is through ETFs.
The way to short the yen is to borrow yen and use the loan to make investments that earn more than 3% in currencies that are likely to rise against the yen.
Since that article the dollar has risen from 82 yen per dollar to 90 yen per dollar bringing a double digit profit in a month.
Dollar yen chart at www.finance.yahoo.com
Problem #3: Government buying ammunition. Winning Idea: Shares in Alliant Techsystems (NYSE: ATK).
Chart of ATK shares at www.finance.yahoo.com
Shares of ATK have risen from $57 to $66 per share since we wrote: I stumbled across ATK because of a potential problem. Numerous readers began sending me copies of websites headlines like this: Fears that federal authorities are preparing for mass civil unrest have increased after it was revealed that the Department of Homeland Security is planning to buy a further 750 million rounds of ammo in addition to the 450 million rounds of hollow point bullets already purchased earlier this year.
The buzz is that the current administration is afraid of civil unrest in the USA and is arming up.
Perhaps so but my thinking focused on value instead of anarchy. Instead of asking… is this true or not… what is the government’s intention… I asked… Who will make all that money?
For a fact… there is very little I can do about the government or its expenditures. There is a lot I can do in my own actions and investing.
So I looked and found this news at fiance.yahoo.com: ATK Delivers 2 Billion 7.62mm Rounds to the U.S. Army from the Lake City Army Ammunition Plant (LCAAP). ATK Delivers More than 350 Million 5.56mm Enhanced Performance Rounds Using Modernized Production Line Equipment . ATK Receives $131 Million in Small-Caliber Ammunition Orders
Over the past 10 years, the company produced an average return on equity of 31.51% by using financial leverage.
ATK debt is high but during the recession it never had problems with debt service. All these facts suggest that the shares of ATK are good value.
A little investigation found that stocks in the defense sector have been selling at historically cheap valuations and that ATK shares were selling a ratios far below the industry average. ATK Price/Earnings is 6.2 compared to an industry average of 13.2. ATK Price/Book is 1.3 compared to industry average of 3.0 and its Price/Sales Ratio is 0.4 compared to 0.8.
The 10 year average P/E ratio for its shares has been 18% but is currently below 10% about half the ten year average.
These facts coupled with recent events in the Middle East suggest even more spending will be for defense.
Share the world’s problems and how to gain the power of positive to turn them into opportunity this weekend in Eustis, Florida.
Multi Currency Value Investing Seminar
2015 ScheduleSchedule 2015 Seminars and Courses
Delegates enjoy taking breaks at our winter courses in Mount Dora.
We conduct our summer camps at Jefferson Landing in West Jefferson North Carolina.
Join us in balmy Central Florida in the winter and the Cool Blue Ridge in summer.
Join Merri and me for all the courses and seminars that we’ll conduct to help you gain positive solutions to your economic, financial and lifestyle concerns.
Here are the courses we currently have scheduled in 2015. Course in bold conducted by Gary & Merri Scott
February 13-14-15, 2015 Friday, Saturday, Sunday. Super Thinking Writer’s Camp, Mount Dora, Florida (Normally $799 or $999 for a couple)
February 26-27-28, 2015, Thursday, Friday, Saturday Puerto Aventuras, Mexico.Super. Thinking + Spanish (Normally $699 or $899 for a couple)
May 1-2-3, 2015, Mount Dora Florida. Multi Currency, Protect Against a Weak Dollar Investing Seminar. (Normally $799 or $999 for a couple)
Sept 4-5-6, 2015, West Jefferson, North Carolina. Multi Currency, Protect Against a Weak Dollar Investing Seminar. (Normally $799 or $999 for a couple)
Enroll in the Writer’s Camp Multi Currency, Protect Against a Weak Dollar Investing Seminar. You receive a full scholarship to attend a Super Thinking + Spanish course FREE. You save $699 to $899.
Hemingway’s Secret to Better Writing Saves You Up to $899Our Writer’s Camps specialize in how to write to sell through self publishing. This course goes way beyond logic and looks at how to think, write, earn with greater wisdom.
We help you learn ways to go the extra mile.
Was Ernest Hemingway’s secret to better writing in English or Spanish?
Hemingway with Friends at La Florida (“Floridita”), Havana, Cuba.
To get a Nobel Prize in literature… you have to be willing to go the extra mile (1). In Hemingway’s case perhaps he went further… 104.91 miles to be exact from Key West to Havana. There may have been many reasons why Hemingway liked Cuba but he already had access to them in Key West. Why go the extra 104.91 miles to Cuba?
See Ernest Hemingway speaking Spanish below.
Perhaps Ernest Hemingway knew that speaking a second language makes you smarter. Perhaps he realized that he could think and write better in English when one learns Spanish. In 1939 he moved to Cuba and wrote “For Whom the Bell Tolls” which became a Book-of-the-Month Club choice. The book sold half a million copies almost instantly, was nominated for a Pulitzer Prize, and cemented Hemingway’s reputation as one of the great writers in the English language… at a time when he was speaking two languages.
You too can be be smarter, write better and incidentally… and save up to $899 in the process.
You might ask… “What the heck does Spanish have to do with writing and self publishing?”
Well… to start, being smarter means you write better and the fact is, you do gain greater intellect with Super Thinking. Super Thinking tactics integrate brain waves so absorption, retention and recollection of information improve… a lot. Most important of all, Super Thinking helps you synthesize what you learn so you can connect dots and use the knowledge you gain to achieve your goals.
In short, Super Thinking makes you smarter.. a lot!
Super Thinking is not a gimmick nor a trick.At least three best selling books, Superlearning, the Mozart Effect and Superlearning 2000 have revealed insights about how we can learn and think more powerfully based on systems drawn from the Bulgarian master, Dr. Georgi Lozanov. Merri was among those few who learned how and is licensed to teach the Lozanov system. She has organized a practical course on how to learn faster and better. With her modified system, you discover how to think more powerfully in just three days…and experience the wonders of superlearning.
When I figured this out, my first thought was… “Why not help readers learn writing AND Spanish?” There and then was a two for one deal.
Enroll for our Writer’s Camp and you gain a full scholarship to one of our Super Thinking + Spanish course or vice versa. You save $699 (single) to $899 (couple).
Still you ask… “Why Spanish for writing and self publishing?”
Spanish is the second most spoken romantic language. Chances are a huge Spanish speaking population lives near you. Speaking Spanish can be helpful in innumerable ways just from this fact.
There is more. Learning a second language makes you smarter and healthier.
Image from Telegraph article “Why learn a foreign language? Benefits of bilingualism”. (2)
The Telegraph article (linked below) entitled “Why learn a foreign language? Benefits of bilingualism says (bolds are mine): Learning a foreign language is more than just a boost to your CV or handy for travelling. It will make you smarter, more decisive and even better at English, says Anne Merritt.
Physiological studies have found that speaking two or more languages is a great asset to the cognitive process. The brains of bilingual people operate differently than single language speakers, and these differences offer several mental benefits.
You can read the entire article at the link below but to sum it up it shows seven ways that learning a second language improves your intellect and health:
* You build multitasking skills
* You stave off Alzheimer’s and dementia
* Your memory improves
* You become more perceptive
* You become smarter
* Your decision-making skills improve
* You improve your English
A better command of English… used by a smarter, more perceptive person who can remember details and multi task, creates a better writer.
With this. I rest Hemingway’s case.
Learn the power of Super Thinking. Gain the seven benefits of being bilingual. Attend our Super Thinking + Spanish course and Writer’s Camp. Save up to $899.
Enroll for a Writer’s Camps and you gain a full scholarship to a Spanish course. You save $699 (single) to $899 (couple).
We have not set specific dates for our next Spanish courses as we are looking to schedule a course in Cuba as well as the USA. When the schedule is set you’ll be entitled to attend with a full scholarship.
February 13-14-15, 2015 Friday, Saturday, Sunday. Super Thinking Writer’s Camp, Mt. Dora, Fl. (Normally $799 or $999 for a couple)
Enroll in the Writer’s Camp. You receive a full scholarship to attend a Super Thinking + Spanish course FREE. You save $699 to $899.
Enroll in the Writer’s Camp. You receive a full scholarship to attend a Super Thinking + Spanish course FREE. You save $699 to $899.
Travel, accommodations and food are not included.