Our business has been publishing information on multi currency investing for 45 years.
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 25 years. Recently we combined Jyske’s expertise with that of ENR Asset Management, a Canadian investment manager, so Americans can have multi currency portfolios combined with Danish banking safety.
Learn how to use this combination for extra purchasing power and investing safety in our report “Borrow Low Deposit High – How to Use the Multi Currency Investment Sandwich.”
You gain seven benefits with multi currency portfolios held in overseas banks.
#1: Protection Against the Dollar’s Loss of Purchasing Power. In 1913 the The Federal Reserve Act created the Federal Reserve Bank to protect the purchasing power of the US dollar… which has since lost about 94% of its purchasing power. Here is its price compared with gold since 1900.
Some good job.
Under the auspices of the Fed, the dollar lost most of its strength plus allowed interest rates to now fall to nearly zero so capital cannot be lent for enough to keep pace with the drop in purchasing.
However many readers may have forgotten about this risk because the greenback has been strong lately… as it was after the last great recession of the 1980s.
Chart from Grandfather Economic Report.
History suggests that almost all currencies eventually lose purchasing power but fundmentals show that the US dollar will lose purchasing power faster than numerous other currencies right now. One way to reduce this loss is as a multi currency investor. “Borrow Low Deposit High” shows how to have portfolios like the Canadian “ENR Global Currency Sandwich portfolio”, an equally-weighted anti-dollar portfolio including the Norwegian krone, Swedish krona, Singapore dollar, New Zealand dollar and gold bullion.
#2: Bank Safety. The USA is no longer the safest country in the world to invest. In fact the US is not even in the top ten countries because the United States, the United Kingdom and France have all lost their perfect credit rating score.
The remaining countries with the highest credit ratings are wealthy economies that the three main credit rating agencies, Moody’s, Fitch, and Standard & Poors all still rate AAA or Aaa. These countries are:
7. The Netherlands
#3: Multi Currency Expertise. Americans… nor their bankers are not used to currencies beyond the US dollar. Europeans bankers grow up thinking in a multi currency way. Their countries are small and surrounded by nations with other currencies. Facilities to make multi currency spending and investing easy are normal in Europe. For example my account at Jyske bank has 13 currency sub accounts so when shares or bonds I hold pay dividends or interest, the funds are received and kept in these currencies instead of converted to the greenback. As you’ll see it is normal to not only invest but to borrow Japanese yen, or Swiss franc or Euro to make investments in other currencies.
Most European bankers can buy bonds and shares in multiple markets where most US banks and brokers have little or no access or experience.
#4: Forex Profits From Currency Distortions. Here is an example of such profits. In December 2012 we sent readers a signal that the Japanese yen was too strong and was likely to weaken in early 2o13.
In the next six months the US dollar rose 13% against the yen.
Yen dollar chart at www.finance.yahoo.com
Readers who followed this call picked up a 13% forex profit.
On December 12, 2012 one USA dollar would buy 82 yen. By July a dollar would buy 100 yen!
For over 20 years we have continually updated this report to help investors large and small learn how to spot and cash in on such currency distortions.
See below real six year examples below of how multi currency investing has doubled and even tripled profits… plus enhanced safety.
#5: Enhanced Privacy. The multi currency report helps you learn how to legally enhance privacy. The erosion of privacy is caused by technology and the global economy has made the erosion global.
Doctors, accountants, businessmen, political activists, and others have found themselves the targets of frivolous law suits, though they did nothing wrong, broke no laws, and harmed not a single soul. One of the areas especially targeted by such law suits are the finances and privacy of individuals.
Over the past four decades I have watched the rights to privacy of everyone’s financial affairs slowly erode.
There are always positives that balance the negatives though. As one loophole closes, others pop open.
Bank accounts abroad are far more private from commercial asset searches.
In addition a change in a US privacy reporting requirements now allows almost any investor to hold assets abroad… legally without reporting the fact to the IRS.
The primary document used by US government to keep track of US investments abroad is the Treasury Department Form 90-22.1. This must be filed any year a person have an interest in, or a signing power on any foreign bank account or other types of financial accounts outside the United States.
Previously these accounts were defined as:
• Bank accounts (checking and savings)
• Investment accounts
• Mutual funds
• Retirement and pension accounts
• Securities and other brokerage accounts
• Debit card and prepaid credit card accounts
• Life insurance and annuities having cash value
A new loophole has opened that allows Americans to legally hold substantial amount abroad in large safe banks without filing this form.
“Borrow Low Deposit High – How to Bank and Invest Abroad” shows how to hold even large sums in an overseas bank account with having to file a TDF 90-22.1.
#6: Gain Extra Asset Protection. When you bank in country with a civil code legal system you gain extra asset protection. Claims made in a common law country must be retried under civil law. For example if a person has a judgement creditor in the USA… the judgement is not effective in Denmark. The claim has to be retried in Denmark… a long expensive process for the creditor. No claim from a US suit has ever been enforced against a Danish bank account.
#7: Add Extra Investment Opportunity. Smart investors who know how to spot value in multi currency portfolios gain an extra way to earn profits though leverage. We saw earlier how from December 2012 to July 2013 the US dollar rose over 13% against the yen and readers who followed this call picked up a 13% forex profit.
There is a second way they could have earned. They could have borrowed Japanese yen at a low interest rate (2.5%) and invested the borrowed yen into a Dow Jones Industrial ETF for this six month period.
In this example $100,000 was 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.
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 is one of numerous examples this report shares.
Let’s look at both the up and down side of these high performing portfolios?
The report provides an extensive beginner’s guide to developing multi currency portfolios backed up by our more than two decades of experience working with Jyske Bank and its investment management subsidiaries to create and track multi currency portfolios real time. The report data comes from dissecting and discussing the portfolio results. Readers learned… real time, from real portfolios created by some of the best investment managers in the world as these portfolios rise or fell in the market place… in the here and now.
Jyske Bank, Denmark’s second largest bank assisted by providing portfolio details. Now ENR Asset Management in Canada fills this role. Our symbiotic relationship allows me to combine my experience with both Jyske Bank’s incredible knowledge, real time capability and expertise and ENR’s management skills so readers of the “Borrow Low Deposit High Report” can learn in a most practical way from some of the greatest multi currency experts in the world.
We continually look for breakouts because economic breakouts create fortunes.
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.
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. Such is the power of the multi currency sandwich.
Here is our educational performance from 2006 till 2013.
We created five portfolios for educational purposes beginning in 2006. One of the five multi currency portfolios was the Asian Emerging Multi Currency Portfolio. The portfolio started with a $100,000 investment and a $200,000 loan in Japanese yen (more on the loans in a moment).
This gave us $300,000 to invest in this portfolio.
|75,000||Rupee||Jyske Invest Indian Equity Mutual Fund|
|75,000||Yuan||Jyske Invest Chinese Equity Mutual Fund|
|75,000||Yen||Jyske Invest Japanese Equity Mutual Fund|
|75,000||Multiple||Jyske Invest Emerging Market Bond Fund|
Investments Total Value 300,000.00
Loan $200,000 100.00% JPY at 1.63%
Loan cost for one year $3,260.
This portfolio diversified into bonds and equities throughout Asia ..very multi currency.
Chinese yuan, Indian rupee, Japanese yen and more.
Twelve months later the portfolio was worth $417,420. Paying off the loan cost $203,260 leaving $214,160 or $114,160 (114.16% profit) on the $100,000 originally invested.
On November 1, 2006 we made the five changes mentioned above. We dropped the Japanese equities and emerging market bond mutual funds and added an Eastern European, Far Eastern and Turkey equity mutual funds. This is how the rearranged portfolio stood.
|75,000||Rupee||Jyske Invest Indian Equity Mutual Fund|
|75,000||Yuan||Jyske Invest Chinese Equity Mutual Fund|
|75,000||EUR||Jyske Invest Eastern European Equities|
|50,000||Asian||Jyske Invest Far Eastern Equities|
|25,000||Lira||Jyske Invest Turkish Equities|
Investments Total Value 300,000.00
Loan $200,000 100.00% Czech Koruna at 3.875%
Loan cost for one year $7,750.
As promised this portfolio only had five changes. We swapped the Japanese equity fund for a Eastern European equity fund and dropped the bond fund replacing it with a Far Eastern and Turkey equity fund.
May I, at this point, interject a note about ENR fund managers. They are a Canadian firm but assets and multi currency loans are at Jyske Bank.
In addition the portfolio manager, Thomas Fischer, I have always worked with for the past ten years and who built these portfolios is moving from Jyske to ENR Management.
So how did that portfolio do? From November 1, 2006 to October 31, 2007 the fund rose in value from $300,000 to $430,370. The loan payoff of $207,750 left a profit of $222,620 or a rise of 122.62%.
There you have it, a portfolio held at one of the world’s safest banks. With only three trades in two years the performance was 114.16% profit in one year 122.62% profit in year two.
I am sure that when looking at performance like that you are thinking “how did the other portfolios do?” Good question and your suspicions are correct…some of the other portfolios did not rise this much.
Yet believe it or not some portfolios did even better.
For example the 2007 Green Portfolio consisted of six shares and rose 266.30%!
Here is the exact performance of all five portfolios for two years.
|US Dollar Long||9.04%|
|US Dollar Short||10.43%|
|US Dollar Hedge||11.46%|
|Asia Emerging Market||114.16%|
|Asia Emerging Market||122.62%|
You can imagine with performance like this attracted quite a bit of attention…and it did. However there is more than high returns you gain with our multi currency report.
“Borrow Low Deposit High” does not recommend specific portfolios. The portfolios in the report are educational and designed to help readers work with their own investment manager to create their own multi currency portfolio that suits their own special, individual needs.
“Borrow Low Deposit High” helps you learn how to manage your investment manager… nothing more.
This gives you triple profit potential because you’ll know how to spot strong currencies. ENR can help you refine your thinking and execute a balanced portfolio. Jyske Bank provides a stable and safe institution who make multi currency loans and hold your assets.
“Borrow Low Deposit High” helps you learn why and when to invest in shares, how to leverage, how to create discipline and manage risk. The incredible portfolio performance above was achieved because the portfolios were leveraged using a tactic we call a multi currency sandwich. Investors borrow low and invest in yielding or growth portfolios. The portfolios used loans in Japanese yen and Swiss francs to magnify profits in good times.
The report teaches how these loans can magnify losses in bad times as well.
For example look at the performance of the leveraged portfolios we created to study from November 2007 through September 2008.
|Blue Chip Portfolio||-79%|
|Danish Health Portfolio||-92%|
|Asia Emerging Market||-73%|
Leverage in 2008 caused the portfolios to lose badly… in one instance the total portfolio was lost!
“Borrow Low – Deposit High” is especially useful now because we SHOULD NOT expect rising markets all the time.
You learn how to look ahead and act rather that react (when it is too late).
Trusting your fate to any one currency can destroy your purchasing power. Every investor needs to know what to do!
The report helps learn how to look for times when to leverage and for times when to retract. The idea is to cash in when the going is good and then withdraw.
This report has been read by tens of thousands of investors over the years. This report, sold for decades as a survivor’s hand guide to currency turmoil for $79.
As always you are protected by our 30 day complete satisfaction or your money back guarantee.
Here is what a few others from around the world have said about our services and reports on international investing.
“Gary , I am a long time subscriber in various media, and while cleaning out my files today I found some old ‘Gary A. Scotts World Reports’. In particular, the April 1988 issue provided the info that made me over a million dollars. Just wanted to say a belated ‘thank you’ and please continue the excellent work. Warm regards,”
From an Unknown Reader
“Dear Gary, I would like to give thanks to you for introducing me to Jyske Bank two years ago.
“I have been a long-time client of Merrill Lynch, but am in the process of re-evaluating my relationship with the largest brokerage company in the world. My problem is that when I compare Merrill to Jyske, Jyske outshines Merrill (or other major U.S. brokerage firms) in most categories as follows:
“1) Even though Jyske is much smaller, it has a much more global perspective which is critical in an evermore global investment environment.
“2) In order to maximize their own individual revenue, the brokers at Merrill prefer to outsource the day-to-day management of their accounts to various fund managers and hence, ‘manage the managers’. In contrast, I can call my Account Manager at Jyske and he can discuss every aspect of my account in detail with me.
“3) I attribute this difference in #2 to the fact that Jyske’s employees are not compensation driven, but instead are focused on satisfying their customers. That is why Jyske’s clients stay with the Bank on average for 12 years, which is phenomenal by Wall Street standards.
“4) Jyske’s security is far more stringent than that of Merrill’s. In addition to the standard account code and password, to pass through Jyske’s security one has to enter a Key Card number and also a randomly-generated 4-digit number from said Key Card.
“5) Having an account offshore allows me to sleep better given the anxious times we live in. Since I report the existence of the account and pay all taxes due, I am fully compliant with the law. However, such an account gives me and my family a ‘financial life boat’ should events in our own country ever get out of hand.
“As Dorothy Parker once said, ‘You can lead a horse to water, but you can’t make them THINK’. Jyske is a thinking person’s bank. My only complaint is the time zone difference since I live in California . However, since I am an early riser and my Account Manager is very responsive to my emails, this problem is very small relative to the HUGE benefits.
“Again, many thanks for introducing me to Jyske Bank. Given the ‘dumbing down’ that occurs in the popular media today, your ezine and its recommendations are ever more important. Please continue your good work to enlighten your readership.
C.M. CALIFORNIA Businessman
“I was so overwhelmed with information I received I had to spend several days reading, sorting and filing it! I have decided to move my modest investment capital overseas.”
B.W. MONTREAL CANADA Professor
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“A number of new and significant contacts were made. It would be extremely helpful if you could supply us with WORLD REPORTS.” I.M. TORONTO , CANADA Banker
“You are as good as your word which is rare these days. I look forward to attending one of your seminars.” C.K. GENEVA , SWITZERLAND Banker
“In spite of my marketing experience, your information really got me going!” M. C. LONDON, ENGLAND Marketing Consultant
“Thanks for the three reports. They are very interesting and should find many readers here in Japan .” M.A. Tokyo , JAPAN Computer Programmer
“I would like to say how much I enjoyed the information I received.” A.B. Providenciales TURKS & CAICOS Accountant
“First let me say how much we enjoyed the investment seminar.” W.J. SAUDI ARABIA Oil Engineer
“Once again thanks for all the great information.” G.K. PERTH , AUSTRALIA Insurance Executive
“Your letter of November 8th warned me to beware of the market just a week before the 120 point crash on November 15th!” T.G. N. CAROLINA Pilot”
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