The Multi Currency Sandwich answers a question readers often ask… “Why hold assets abroad?”

Why put your savings and investments in a country where investment managers are fixated on a currency that has fallen for almost 40 years?

Instead bank where you can do multi currency investing like the multi currency sandwich.

One Easter about 20 years ago, our newsletter coined the phrase Multi Currency Sandwich.

(click on photo to enlarge)

The Japanese yen versus the US dollar ranging from 145 yen to 79 yen per dollar.

I remember the day well because on the Easter Sunday we had invited one of our Austrian bankers and his family for an Easter breakfast.  This was also the day that daylight savings changed.  Merri and I awoke and remembered “Fall Back – Spring Forward”.  However  for some reason we fell back… when forward we should have sprang!

Thinking we had an extra hour instead of one less we were still in our pajamas when the banker and his family… all dressed in their Sunday best, knocked on our front door.

One does not forget days like that.

I also recall a comment I made that day to the banker.  I told him that we were gong to advise our readers to borrow Japanese yen… and invest the loan in Mexican pesos.  The yen had risen in value versus the US dollar from the 140 yen to the dollar range to 111 yen per US dollar.   The yen interest rate was somewhere around 4% and Mexican peso bonds were paying at 12%.

I told him… this will be the most powerful investment advice I have given… ever.

How true that was!

The yen immediately strengthened more and rose all the way to 79 yen per dollar.  That scared the heck out of many. Those who bailed lost… in some cases a lot!

My belief was that the yen was over valued even at 111.  My studies suggested that 120 was the correct parity.  This was a yen bubble. Every day that the yen was higher than 120 per dollar was an investing opportunity.

When the bubble burst, the yen fell clear back to 145 yen per dollar.   Readers  who had held on… as I did… made a huge profit.

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.

Let’s look at this borrowing yen approach first using the Borrow Low and Invest High strategy with yen loans.   Then we’ll look at the yen short ETF. 

The recent post at this site on Leveraged Asset Allocation shows how Jyske Bank’s JGAM is leveraging asset allocation portfolios with US dollar and euro loans.  This type of leverage is called hedged leverage because it has no forex risk.   Dollars and euro are borrowed at low interest rates and invested in higher yielding dollar and euro investments.  The added profit comes only from the difference between the loan costs and the yield or capital increase of the investment.

Let’s review a simple Multi Currency sandwich example.

Here are the current invest loan interest rates from Jyske.

(Click on photo to enlarge).

In this example we invest $350,000 (we’ll see how to invest smaller amounts in a moment).   We borrow $520,000 in US dollars at 2.62% and $130,000 in euro at 2.5%.  This is the loan ratio used by JGAM at this time and gives us $1 million to invest.

We invest in two bonds. $200,000 is in a bond issued by Santos denominated in euro with a coupon of 8.25%.   The bond comes due 22-09-2070. This is a medium risk bond and yields of about 6.9%.

The second investment is $800,000 in the US dollar denominated bond offered by Danske Bank with a 7.125% coupon due 21-09-2037. This is a medium risk bond yielding about 5.9%.

The return on the Santos bond is appx: $13,800

The return on the Danske bond is appx: $47,200

The total return is  $61,000.

The loan cost in euro is $3,250 (2.5% on $130,000).

The loan cost  in dollars is $13,780 (2.6% on $520,000).

The total loan cost of $17,030 leaves a positive carry (extra profit).  The total return after the loan cost $43,970 or about 12.5% return on the $350,000 invested.   That return is diminished by one time, upfront loan costs on the first year of $1,300.  Then there are no added loan costs for the five year term of the loan.

The figures above are used for illustration purposes only. These are not recommendations as a portfolio would be far more diversified.

The risk in in the bonds… not currency parities.  Euros and dollars were borrowed. Equal amounts of Euros and dollars were invested.

Now let’s look at the same example but with borrowed yen.  The yen loan creates potential forex profit… or loss.

Currently one dollar equals about 82 yen.

Assume the same multi currency sandwich was created… but with $650,000 worth of borrowed yen instead of loans in dollars and euro.

The interest rate for yen is lower… only 2.5% versus 3.125% for the US dollar.   This bumps the return up to almost 12.8%.

However the forex potential is what becomes interesting. At 82 yen per dollar this requires a 53.3 million yen.

Assume that the yen returns to the purchasing power trend of 117 as shown in the chart below.

Chart from Bloomberg.com shows the yen at 117

(Click on chart to enlarge)

A shift from 82 yen per dollar to 117 yen per dollar is a 35% drop.   If those dollars and euros bought back yen at the 117 parity it requires only $455,555 to repay that had been worth $650,000.  The forex profit is $194,445 or an extra 29% beyond the positive carry.  If that drop took three years to happen and one held the bonds (and their value did not change)…. the total return over three years would be 67.4%.

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.

If this could be of value to you… be sure to review this with an investment adviser to look at a broader diversification of bonds plus the forex risks… the bond risks as well as the forex and bond purchase and management costs to make sure that such a speculation would work for you.

American investors can get more details and answers from Thomas Fischer at fischer@jgam.com

Non US investors can get details from René Mathys at mathys@jbpb.dk

For Smaller Amounts

JGAM has two types of clients… managed and advisory.  Normally the minimum for US clients managed clients is $200,000 and advisory one million dollars.

With leverage the managed minimum drops to $100,000 with one time leverage and $70,000 with two times leverage.

Canadian and other non US investors have a slightly higher minimum but much greater flexibility and freedom.

JGAM makes all decisions including composition of the loan with managed accounts.  Right now managed accounts have dollars and euro loans as shown in the Leveraged Asset Allocation posting of two days ago.

Advisory clients can choose the funding currency together with their Relationship Manager. The minimum for an Advisory is  1 million unleveraged or $500,000 with one time leverage (medium risk profile) and $350,000 with two times leverage (high risk profile).

Betting Against the Yen for Even Smaller Amounts.

Lou Shinamin at Ruggie Wealth outlined how to sell the Japanese yen short using ETFs.

Lou wrote:  I am watching a very nice cup and handle pattern forming on the Japanese Yen.  Aside from Forex, the easiest way to take advantage of the dollar strengthening against the Yen would be to look at  the ETF :  YCS .  Ultra short Japanese yen.

Get more details on this ETF from Lou Shinaman at lshinaman@ruggiewealth.com

One way for those who cannot open a  JGAM account to get the high bond income and forex potential, but not the positive carry is to buy the bonds from a US broker and buy the short yen ETF.

You can get details for buying the Danske and Santos bonds from Mike McDonald at Aegeon.  Michael McDonald at mmcdonald@aegiscap.com

Multi currency investing offers five enhanced benefits… asset protection…. greater privacy… broader diversification… forex potential and positive carry potential.    Since modern technology makes it as easy to bank in Europe and Asia as next door… these benefits are available to most investors if they learn how to Borrow Low and Invest High.

Gary

Join me with Thomas Fischer, Mike McDonald and Lou Shinaman at our February 1,2,3  Super Thinking + Investing & Business seminar in Mt. Dora, Florida.   See details here.

Save $79. Enroll in the seminar before Christmas and I’ll send our report Borrow Low-Deposit High Free. See details below.

Multi Currency Portfolios Report – “Borrow Low – Deposit High”

Multi Currency Portfolios Report. A Survivors Guide to Currency and Market Turmoil.

“Borrow Low Deposit High – How to Use the Multi Currency Investment Sandwich”.

Order “Borrow Low Deposit High – How to Use the Multi Currency Investment Sandwich.”

What if I offered you a free Mercedes Benz?

You would probably say YES… but would be thinking… “what’s the catch”.  That’s good because we all know there is no such thing as a free lunch… much less a free new car.

Would an answer be harder if instead there was a choice… a FREE Mercedes or $4 million bucks (as in US dollars).

Most would choose the cash.  Yet you would still be expecting a catch.  There is a penny to drop… some risk and the need to ignore the thundering herd and an absolute requirement of discipline.

The US election is over… but not in the mind’s of almost half the American voters… who lost.    The US as the economic engine that has been pulling the world is a nation divided and the administration for the next four years… good or bad… has huge challenges and pitfalls ahead.

The view of the election results in markets around the world was dim.  US Stocks plunged and the Dow had its worst day of the year.  Other north and South American markets finished sharply lower.

Euro markets dropped because the German economy is slowing and tens of thousands at Greek rallies against austerity turned violent.  Protesters in Athens threw Molotov cocktails at the Parliament and police fought back with tear gas outside.  World markets slid on a weak growth outlook.

Optimism

This bad news is all good for those who are prepared so let me share a true story about how and why an investor in similar circumstances got the Mercedes and had the $4 million… but then lost it.

The story contains three valuable tips… explaining the FREE car plus how the millions were gained and lost.

Here is the true story… a tale of politics, economics and US debt.

Once upon a time 1981 to be exact… similar circumstances to the current economic and political mess arose across the land.    The story began with unemployment.   In 1981… the US Presidential election was over,  the US economy was crashing and the a new government and President were turning on a money printing machine.

This was a dark and gloomy time… those early 1980s.  Really.   That was the worst recession since the great depression.

You often hear we are living now through the worst recession since the great depression.  This is statistically wrong.

The U.S. economy may seem in bad shape now, but 1982 was worse.

The economy is not as bad as it was after the 1980 election.  It’s not even that close to being as bad. The ranks of unemployed and underemployed were much larger in 1982 than today.

The first big blow to the economy back then was the 1979 revolution in Iran. That glitch sent oil prices skyrocketing.   The bigger blow was a series of sharp interest-rate increases by the Federal Reserve, meant to snap inflation.  Home sales plummeted.  At their worst, they were 30 percent lower than they were when the real estate market bottomed in 2011.  The industrial Midwest was hardest hit, and the term “Rust Belt” became ubiquitous.  Many families fled south and west, helping to create the modern Sun Belt.

Nationwide, the unemployment rate rose above 10% in 1982, compared with 7.9% now.

The times were much darker.  In October 2012 another 6.7 percent of the labor force can be added to the current 7.9%. This group have given up trying to find a job or are involuntarily working part time.  These groups bring the combined underutilized employment rate to 14.6%.

As bad as this number is, it is still not that close to the 1982 peak of 16.32%  (or anywhere near its Depression levels, which were probably above 30 percent). The early ’80s really were that bad.

This story begins at the end of the 1980 Presidential election when the US economy was at its worst in 50 years and getting worse.

Debt Growing

There is another similarity in the 1980 story to the here and now… a runaway US debt.

As this chart below shows, the US debt debacle really began after that 1980 election.

Click on photo to enlarge.  Debt by President graph at zfacts.com

Now the story begins.  The stock market began a 17 year bull cycle that led to the greatest US and global affluence known to the recorded history of mankind.

The chart below says it all.    From that darkest hour, the Dow Jones Industrial average rose 1,410%.

These stock market bull and bear cycles are based on cycles of human interaction, war, technology and productivity.

Our hero in the story saw the coming stock market boom… despite the fact that everyone thought everything was bleak and black.   He approached Jyske Bank and said he wanted to invest in the stock market and wanted to leverage his bets.

His goal was to make enough to buy a brand new Mercedes Benz.

He opened the account and bought shares. He used those shares as collateral to leverage these investments with borrowed Japanese yen.

His timing was lucky.  The stock market rose quickly.   The Japanese yen collapsed.  His profits shot past his goal to buy the car.

The Fever

Bubble fever had set in so when the hero’s investment manager called with that great news… “you have enough for your new Mercedes“, the investor changed his mind.   “Let it roll“… the investor said.  “I want to make a million instead.”

The investment manager left the portfolio alone and soon the investor’s profit rocketed past 1 million dollars.

The investment manger called.  “You have made a million bucks… perhaps we should take some profits.“

“Let it roll“… the investor said. “I have decided to make two million instead.”

The investment manager left the portfolio alone and soon the investor’s profit rocketed past 2 million dollars.

The investment manger called.  “You have made two million bucks… perhaps we should take some profits.“

“Let it roll“… the investor said. “I have decided to make three million instead.”

The investment manager left the portfolio alone and soon the investor’s profit rocketed past 3 million dollars.

The investment manger called.  “You have made three million bucks… perhaps we should take some profits.“

“Let it roll“… the investor said. “I have decided to make four million.”

As the portfolio was nearing four million in value the investment manger called.  “You have made almost four million bucks… perhaps we should take some profits.“

“Let it roll“… the investor said. “I have decided to make four million and enough for a Mercedes.”

Shortly after the stock market corrected and the yen strengthened.   Profits fell so quickly the investor lost a million almost overnight.

The investment manager called.  “You have lost  a million bucks… we had better take the profits.“

“Hold“… the investor said. “The market will come back”.

The stock market fell more and the yen grew stronger.  The profits fell even faster and the investor lost another million.

The investment manger called again.  “You have lost  another  million bucks… its time to take your profits.“

“Hold“… the investor said. “The market will come back”.

The stock market continued to plummet and the yen rose more.  The investor lost another million.

The investment manger called.  “You have lost  three million bucks now…  You really should take the profits left.“

“Hold“… the investor said. “The market will come back”.

Finally as the market plunged more and profits faded away… the investor, having lost more than 3.5 million, closed his positions and had just enough profit left to buy his new car.

The Mercedez was black and shiny… a big 500 SEL model… king of the road.   The hero never enjoyed it much.

The morals of the story

#1: If you get into the market at the beginning of a long term bull… you can make a lot of money… quickly.

#2: When you leverage the investments with low interest leverage the profits come even faster.

#3:  When you leverage investments… you need a plan and discipline.

This is why I want to introduce you to our Multi Currency Portfolios Report entitled “Borrow Low Deposit High – How to Use the Multi Currency Investment Sandwich.”

Order “Borrow Low Deposit High – How to Use the Multi Currency Investment Sandwich” $79.

This is a report that can help anyone with even a few thousand dollars to invest (or millions) diversify globally for safety and long term success.

The economic explanation below follows global multi currency and markets positions from 2006 through to the earthquake and tsunami in Japan so you can see how multi currency investing should flow.

This will help you learn how to protect and enhance your savings and wealth as the US dollar and stock markets rise and fall.

The US dollar has fallen… badly against major currencies like the yen, euro and Swiss franc for 41 years.

For example here is the long term, steady appreciation of the Japanese yen versus the US dollar.

Click on photo to enlarge.

Three Opportunities of Which We Can be Sure.

First, The US dollar will fall more…much more as stock markets in the USA and globally enter their next bull phase.

Second, there will be confusion. Many…in fact most uninformed investors will lose…a lot.

Third there will be inflation…worldwide due to the excessive spending in the current global financial bailout.

Smart investors who know how to spot value in multi currency portfolios at some of the world’s safest banks have already earned 57%…120% …263% so even with the doom and gloom, they are still ahead.

Borrow Low Deposit High helps you learn how to find good value and develop multi currency portfolios that suit their specific circumstances.

Before I explain how you can use this report, 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 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.  This is a totally novel way to learn…real time from real portfolios created by some of the best investment managers in the world as these portfolios rise or fall in the market place…in the here and now.

Jyske Bank assists by providing portfolio details.   Our symbiotic relationship allows me to combine my experience with this bank’s incredible knowledge, real time capability and expertise so reader of my report can learn in a most practical way from some of the greatest multi currency experts in the world.

Here is our educational performance over the past six years.

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.

Investments Total Value 300,000.00

Invested $100,000

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.

Investments Total Value 300,000.00

Invested $100,000

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 Jyske Invest fund managers. They are a Danish firm and are the investment management affiliate of Jyske Bank. This rock solid organization uses a good value system have been rated #1 by Morningstar. They use this value system to select shares in their mutual funds and we place these funds in our multi currency portfolios because they are strictly regulated by the Danish government and have such an excellent record…because they focus on finding value, not market timing.

So how did this new updated 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 leaves a profit of $222,620 or a rise of 122.62%.

There you have it, a portfolio created at and held in one of the world’s safest banks. With only three trades in two years the performance has been up 114.16% in year one and up 122.62% 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 the last two years.

You can imagine with performance like this attracted quite a bit of attention…and it did.  However these high returns are not the important benefit you gain with our multi currency report.

The 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.

Our multi currency investment report helps readers learn how to manage their manager… nothing more.

Yet this is incredibly valuable because Jyske Bank can provide a stable and safe institution for those who wish to employ a multi currency strategy.

The report helps guide readers so they can direct any investment adviser or investment manager who understands how to invest in more than one currency.

The report also 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.

Leverage in 2008 caused the portfolios to lose badly… in one instance the total portfolio was lost!

The report  Borrow Low – Deposit High is useful because it helps investors not to expect rising markets all the time.

The course helps subscribers learn how to look ahead and act rather that react (after the fact when it is too late).

The sad fact is… we all have to become multi currency investors.  Trusting your fate to any one currency now 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.

Plus the report combined with our regular personal portfolio updates helps you to stay on top of currency and investment markets.

For example in 2007…  we began warning readers to exit the markets well before the crash.  Our first of many early warnings said:  “We have enjoyed two years of enormous growth.  Periods of high growth are normally followed by periods of low growth.”

In 2012 we became bullish on equity markets again and history suggests that despite the doom and gloom so many preach… we are at the threshold of the next big global economic acceleration.

This is why I invite you to read my current update of Borrow Low Deposit High…  in the beginning of this wave when profit potential is greatest.

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 and we are not raising the price now just because the next bull market is beginning.

As always you are protected by our 30 day completely satisfied or your money back guarantee.

Order “Borrow Low Deposit High – How to Use the Multi Currency Investment Sandwich” $79.

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.

“Warm regards,”

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

“Send me your report on safe banks lending at 7% for redeposit at 13% or more.” B.V. ADDIS ABADA ETHIOPIA Economic Commission United Nations

“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”

Enhance Privacy

This report also 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 federal prosecutions, despite sensibly believing that they did nothing wrong, broke no laws, and harmed not a single person.

One of the areas especially targeted 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.

For example a change  in a US privacy reporting requirements now allows almost any investor to hold assets abroad… legally without reporting the fact.

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 hold substantial amount abroad in large safe banks without filing this form.

I have created a short report explaining this and the “Borrow Low Deposit High – How to Bank and Invest Abroad” subscription includes the new report on how to hold even large sums in an overseas bank account with having to file a TDF 90-22.1.

Your report is guaranteed.  Satisfaction or your money back.

Order “Borrow Low Deposit High – How to Use the Multi Currency Investment Sandwich” $79.

Gary

See yen chart at businessinsider.com

See yen chart at chartrus.com

See more on the National Debt Graph here

Here is a multi currency portfolio update from Thomas Fischer at Jyske Global Asset Management (JGAM) that can help us during this tug of war environment.

Click twice on photo to enlarge. See an explanation of this Jyske asset allocation below.

JGAM’s analyst Bank Credit Analyst is a Canadian company and it coined the phrase “economic-tug-of-war-environment” so it is not surprising to find an article in the Canadian paper Chronical Herald that we should ponder.

Here is an excerpt from 2012 article “Economic tug of war” by Keith Dicker says:   In Berlin in 1922, Alia Schmidt paid three German marks for a loaf of bread. Six months later, the same loaf cost her 700 marks. The German decision to print money caused inflation to skyrocket.

In Tokyo in 1994, Makishi Satou paid 217 Japanese yen for a McDonald’s hamburger. Eighteen years later, Satou is still enjoying hamburgers, yet he is only paying 216 Japanese yen for the same delicacy.

The Japanese decision to print money resulted in zero inflation. Yet, Satou and others are not at all happy with their money-printing experience and the subsequent 77 per cent decline in their stock market and the 90 pre cent fall in their property market.

Today, the U.S., Europe, Japan and Britain are all printing money and it is fact that only three scenarios are possible:

1) Printing money has absolutely no impact on prices rising or falling.

2) Printing money results in a return to the 1922 German experience.

3) Printing money results in a return to the modern-day Japan experience.

In other words, no one knows quite where to invest and the so called safe investments (such as US and euro bonds) that pay almost nothing might not be safe at all.  However there is a way to increase profits and safety at the same time through leveraged diversification as is described below.

Thomas wrote the JGAM monthly portfolio update yesterday.

Thomas Fischer chatting with a course delegate during a visit to our home for lunch.  Delegates learn a lot during the breaks, meals and get togethers.  Click twice on photo to enlarge.

Here are excerpts from the monthly analysis that Thomas wrote: At our Investment Committee meeting in June we made no new investment decisions, as we felt comfortable with our existing asset allocation and increased exposure to large dividend paying stocks. We felt certain that in the current fragile economic environment the central banks would come to the rescue.

Thursday 5 July the  central banks delivered when the European Central Bank (ECB), People´s Bank of China (PBoC) and the Danish National Bank (DNB) all lowered interest rates. Bank of England (BoE) did not cut interest rates , already at the lowest level in the bank´s history. However the bank injected another £ 50 billion into the economy taking the total to £375 billion.

We are now entering the third quarter and as coined by our research partner Bank Credit Analyst (BCA) a tug-of-war environment dominating the world economy and financial markets.  On the one side the eurozone debt crisis and weak growth will continue to cast shadows over the world economy, and on the other side falling energy costs and monetary reflation will be accommodative for global growth and thereby encourage risk taking.

The negative tug on the world economy is three fold.  A never ending eurozone debt crisis,  a slowing recovery process in the US and China experiencing a slump in exports and manufacturing. The main culprit for the dire situation is the eurozone debt crisis and haphazard response from the European politicians.  We have seen one EU meeting after the next and still with no clear cut solution to the debt problem. It has taken such a long time to deal with the issues at hand, that the crisis has now passed the point where one country (read: Germany) can provide sufficient funds.  The size of the German economy is euro (EUR) 2.6 trillion whereas the total debt of Italy and Spain alone is EUR 2.8 trillion. More meetings will follow before a political compromise can be achieved, but if/when it happens it will be bullish for risky assets. In the US the recovery is stalling, as the household sector is paying down debt,  whilst at the same time the corporate sector is increasing its savings. The US is furthermore heading toward the so called “fiscal cliff” and increased political polarization, which will not be conducive for the overall economy. Chinese economy is also facing headwinds with falling exports, manufacturing and domestic consumption.

The positive tug on the world economy is being provided by falling energy costs, declining interest rates and monetary reflation. The world economy is still balancing on a knife’s edge, but most central bankers seem to have learned a lesson from Japan and are  adamant in their hyper accommodative stance and fight against deflation. We will probably see more aggressive monetary reflation in the coming months and this should help steady the world economy.

We remain in the positive camp and expect equities to outperform bonds even though the eurozone will probably soften overall growth in the world economy.  The flare-up of the sovereign debt issues have also led to a large divergence in the equity markets in the second quarter. The eurozone equity market dropped between 10-18%  whereas the S&P 500 only was down 3%.  Going forward we still expect diverging markets and will focus our attention on markets with the best overall growth prospects.  According to BCA the stock markets of the US, the UK and Switzerland should do better than the average index. We already hold several equity positions in these countries, which has been a major factor in our good performance year to date and strong benchmark outperformance.

We  are of course still dealing with a world that is risky and we also expect volatility going forward.  However at current valuations we still prefer stocks to bonds  and will keep our current asset allocation. According to BCA equity premiums today are well above historical norms and based on past experience this should lead to superior performance of stocks compared to bonds.

Explanation of Asset Allocation

Fixed income:  JGAM is keeping an underweight position, favoring bonds with short duration.

Equities:  JGAM is keeping a neutral to overweight position, favoring large dividend paying companies.

Alternatives: JGAM is keeping a neutral position of holdings in gold and oil as protective investments.

Cash:  JGAM has a neutral position.

Loan mix: All loans for leverage remain unchanged with 100% of the loans in euro.

Leverage: The gearing is kept at a level below maximum.  There is no leverage on the low risk portfolio, 1 times leverage on the medium risk and 2 times leverage on the high risk portfolio.

Here is the Rub

The economic mess that prevails now has been created by too much debt already.  Part of the entire global instability is caused by the never ending eurozone debt crisis.    A debt crisis is caused by too much debt.   Usually the solution to too much debt is not more debt.  However belt tightening is being resisted and creates political and social tensions.  Governments do not know what else to do but lend more.  This makes all government debt dangerous and leads to currency volatility.  There is no place to hide… so one has to diversify into several currencies.    This diversification can be enhanced by regularly adding extra amounts of currencies that look temporarily strong and borrowing currencies that look temporarily weak.

This is what JGAM does with its forex portfolio.

Forex Portfolio

This message focuses on just the JGAM Managed Forex Portfolio

JGAMs forex portfolio reveiw.  Click twice on photo to enlarge.

The JGAM managed forex portfolios help us during tug of wars because they are very different from the typical high leverage forex trading that is often leveraged 10 or 20 times.

There are three main differences between this type of portfolio and currency speculation. 

First JGAM bases  its decision more on currency fundamentals rather than technical movements.   Second, JGAM uses far less leverage.  These two tactics allows Second JGAM  to work in wider trading ranges which creates longer trading positions.  This reduces risk and volatility while maximizing profit potential.

Because JGAM is looking for currencies that are seriously out of balance they will often have limited numbers of positions. Right now they have only two positions, the British pound and the euro short the US dollar.  In other words JGAM is betting the the greenback will rise versus these two currencies.

JGAM is also careful to limit the amount a client has in any one position.   For example the size of both current open positions is 20%. This is the percentage of the client’s available Assets Under Management  (the client’s own capital plus leverage).

Example:   If a client has $100,000 invested with a one time leverage the total Assets under management is $200,000 so when a position’s size is 20% the maximum position a client will have is $40,000.

A high risk investor with a $100,000 investment and four times leverage has $500,000 invested and could have at 20% a  $100,000 position.

JGAM is one of the very few investment management companies that can leverage an individual client’s position with any major currency… so when the euro is weak… (as it is now) leverage is in euro.  If the yen or the dollar or pound were weak, leverage could be in that currency.

Multi currency diversification and leverage are powerful combinations.  In good times they create awesome returns.

In tough times… like now… leverage can help improve diversification.

Leverage is very inexpensive… less than 3% and allows a portfolio to be increased into more currencies and shares. If the increased portfolio earns more than 3% extra,  added profits are gained.  Plus the larger portfolio brings extra diversification which enhances the steadiness of the assets.

This is the JGAM medium risk portfolio. Click on photo twice to enlarge.

Subscribers to our Multicurrency  portfolio reports can see all the JGAM portfolios and our comments at their password protected site.  Click here.

Learn how to get our report “Borrow Low Deposit High” on how to use leverage and a multi currency password here.

One good way to gain stability in a tug-of-war global economy is to have a diversified portfolio (low, medium or high risk depending on your investment profile) and enhance that portfolio with an investment in the forex portfolio.

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

Non Americans contact René Mathys at mathys@jbpb.dk

Gary

Meet with Thomas Fischer at our October 5-6-7 2012 International Investing & Business Seminar.  Click here for details.

Better still, meet with Merri and me and Thomas Fischer of JGAM throughout the year free as an International Club member.

Belong to the International Club

Please join Merri and me.  Spread an epidemic of success… in health… wealth…. service to the community and personal fulfillment.   Be infected with positive purpose…. enthusiasm… fulfillment… extra income, profits and fun.

I invite you to join the International Club 2013-2014.  Save as much as $7,239 for as little as $177 a month.

As a club member you gain $7,792 of seminars, courses, online courses plus Spanish lessons and Ecuador tour discounts.

Join Merri and me  for seven courses and seminars that we’ll conduct in 2013 FREE.  Gain positive solutions to economic, financial and lifestyle developments.

Here are the courses you can attend at no cost.

June 14-15-16 Super Thinking Writer’s Camp, West Jefferson, NC.

August 31- Sept 1-2 Super Thinking Writer’s Camp West Jefferson, NC.

October 4-5-6 Super Thinking Writer’s Camp, West Jefferson, NC.

November 15-16-17 Super Thinking Writer’s Camp, Mt. Dora, Fl.

January 10-11-12, 2014 Super Thinking + Spanish, Mt. Dora, Fl.

February 14-15-16, 2014  Super Thinking Writer’s Camp, Mt. Dora Fl.

In addition members receive discounts on Ecuador farm tours and Spanish courses conducted by our Ateam Ecuador and Super Spanish teachers.  For example Super Spanish courses that are normally $699 are $175.  Ecuador real estate tours are reduced 20%.

Part of the courses we conduct are held on the New River in Ashe County, North Carolina.

New River

We’ll conduct three of the courses either at our farm or in this forest lodge.

50 delegates joined us.

The seminar in action.

After the seminar, International Club members join us at our home to talk with the speakers.

International Club members meeting in our home after a North Carolina seminar.

Four courses are in historic Mt. Dora, Florida.

Please join us this year through in Florida, and North Carolina FREE as an international club member… plus gain access to the agricultural tours and Spanish courses conducted by the Ateam Ecuador at a discount.

Super Thinking Spanish course at the historic train station in Mt. Dora.

There are many benefits of membership.

You (and a guest of your choice) can attend all eight of the seminars we have already set for 2013 plus any others we decide to conduct in the year ahead FREE.

As a club member you also receive seven online reports, courses and workshops worth $1,246 FREE.

The first of these seven online courses is “Tangled Web – How to Have an Internet Business,” normally sold at $299.

The second is our online course “Self Fulfilled – How to be a Self Publisher”, which has a $299 value. I am sending you this extra course free as I think it will help you have greater success. This is an extra $299 savings.

The third is our online course “International Business Made EZ” sold at $299.

You also receive fourth the 50 minute video by our webmaster David Cross on “How to Get Your Web Business Started”.

Your fifth course is the 50+ lesson course “How to Create your Own Website Using Sitesell” by Michelle Toole. (We are proud that this course was written by a student of our courses showing how well the 43 years of knowledge that Merri and I have accumulated and put into these programs can help you start your own global micro business.)

Sixth, you become a beta member in our newest online course “Event – Full Business – How to have a Seminar and Tour Business” currently offered at $349.

When you enroll, we’ll send you a password that makes the online courses easy to access at the Club website.  You can reserve as many seminars as you desire.

Five Positive Steps

Join Merri and me as we look at positive ways to prosper during 2013. Here are five ways to gain from the forces of change that can raise havoc with many.

#1: Having your own micro business for extra earnings, freedom, fulfillment and fun.

#2: Living and prospering in lower cost countries or small towns.

#3: Multi currency investing through US brokers and bankers abroad.

#4: Commodities that rise with inflation.

#5: Good value real estate…. especially multi dimensional and agricultural property.

We have specialized for over four decades in helping our readers excel in these five inflation beating opportunities.

The big benefits of belonging to the International Club are the power of repetition, updates and international friendships.  As a club member, you become friends with other members as you meet again and again.

Your first saving is on waived seminar fees for the seminars over the next year.

As you will see above and below you can attend Florida & North Carolina seminars.  If you attend just two of these seminars, the $1,799 membership fee will have already created a savings for you.

Yet there is more.  Much more.

International Club members meeting in West Jefferson for a reception after the North Carolina seminar.

Enough…. Enough with the Bad News.

Our 2013 mantra is BE POSITIVE in this negative world.  There is nothing as valuable as rarity but we need to remember that bad news sells. This means the mainstream media has slipped into offering information with an adrenaline rush.  Mayhem, murder and natural disasters.   These negative events will happen…. globally. We cannot do much about this.  Dwelling on insolvable negativity is not good for our health or wealth.

A recent quote from the Abraham Hicks website explains why nicely.

Continuing to tell stories of shortage only continues to contradict your desire for abundance, and you cannot have it both ways: You cannot focus upon unwanted and receive wanted. You cannot focus upon stories about money that make you feel uncomfortable and allow into your experience what makes you feel comfortable. A different story will bring different results: My thoughts are the basis for the attraction of all things that I consider to be good, which includes enough money, and health, for my comfort and joy.

Make 2013 Your Best Year Ever

What we can do is make ourselves Friendlier, More Compassionate, Happier, Stronger, More Energetic with greater intellect.  The way to start is to surround ourselves with successful, friendly, compassionate, happy, stronger, smarter, positive people who think as you do.

The International Club brings together experienced, like minded souls, who take a positive view and think outside the box… in constructive, thoughtful, doable ways.

Being in the club surrounds you with successful… positive… like minded souls.  This benefit alone is truly powerful stuff!

The courses you can attend free integrate Super Thinking with business and investing ideas and experience that enhance your health and wealth.

Focus on Ecuador & Smalltown USA & Canada

Learn how to create a BIG INCOME by thinking SMALL.   At the seminars you meet speakers who are attorneys and real estate experts for both Ecuador and small town USA.   You’ll rub shoulders with experts on global investing and pensions who can help you increase and protect your savings and pensions also how to increase the income you earn in positive ways you enjoy as you help your community.

(See a list of speakers you’ll meet at the club meetings along with other club members below).

Absorb  through  Osmosis

Merri and I are in our 45th year of organizing courses, seminars and newsletters about international and Super Thinking  lifestyles. The importance of this sharing… by like minded souls… was reinforced when a delegate from a course sent an email that said:

My Dearest Merri and Gary, Thank you for your most gracious hospitality last weekend. I am just thrilled at being a part of your group. You and Gary were exactly as I imagined you to be, warm friendly, kind, considerate, genuine, helpful, fun, sincere, what else can I say……I felt so comfortable in your presence and learned so much in your course. I was sad to leave the farm that Sunday afternoon. You made us all feel so welcome and cared about. You were so kind to make arrangements for a ride with the other delegates from the Charlotte Airport. They were so nice to me and so helpful, by the time the weekend was over I felt like they were my long lost brothers. Monday morning we all had breakfast at the airport together and I was so sad to see them go, I was sad the weekend was over, perhaps sad is not the right word for how I was feeling perhaps Gratitude is a better way to describe it. Grateful for having the opportunity to share the weekend with such wonderful, like minded Human Beings, in the beautiful mountains of North Carolina. Thank you Merri and Gary.  Thanks to you I now have new hope and a new direction to move forward in my life.  I know by attending your classes and conferences that through education and due diligence I will make the right choices.

This delegate’s comments about “belonging and feeling like a brother” to the other delegates is a wonderful refrain we have heard from our readers, year after year.

24 years ago Merri and I created a way that readers can join us to be immersed in a year-long learning program through our International Club.

The ideas behind this program began all those years ago in Vienna, Austria while we were conducting a course there.  One of our older delegates, had some sort of attack. The first fear was heart trouble. Several delegates took him to the hospital.  Others stayed with him there. I don’t think that delegate was alone for a minute!

What impressed Merri and me was that no one asked the delegates to help this man.

The friendships of delegates sharing many courses had just grown so strong that it was a natural reaction, just as if a family member was ill. Fortunately, it was only travel fatigue and the delegate didn’t miss a session of the course!

When you join our International Club 2013 you become part of a special family. The very first member to join the club all those years ago wrote, Thank you for the enjoyable and informative courses. I am pleased to be part of your international family and look forward to continuing my education at the next course.

His feeling struck a familiar chord. It has always been one of my greatest satisfactions to see how much fun delegates have getting together, sharing information and making friendships as we learn how to improve our health and increase our wealth.

The courses draw like-minded souls.  For this reason some delegates come back again and again. They come to learn, but also to be with their many friends made at the courses. When like-minded souls get together again and again to discuss a common purpose, magic happens! I can’t explain it in any other way-but it is true.

In a way our meetings are almost like family reunions. Perhaps it is getting together and reflecting on what has been said and what has been happening.

Learning with those who are also interested in the world creates thoughts that multiply the value of what we gain.  This is hard to describe but results are most powerful and wonderful!  This is to me is as important as the great financial benefit of attending many of our courses.

See the 2013 seminars in detail  below.

We started and have continued the International Club for 24 years because there are wonderful benefits from having repeat delegates at courses. Having repeat delegates makes the whole course somehow more exciting for all. Being a repeat delegate makes it easier to make and keep wealth and to lock in the knowledge you gain. It’s an exciting lifestyle. We have fun, gain adventure, discovery and friendships and share ways to improve our health and wealth!

You can see from the schedule above a very busy schedule for 2013. Very few club members actually attend every seminar.  Many  attend almost all of them!  Of course we hope you be with us for all of them, but even if you attend just two of the seminars, you gain considerable savings.

Another savings: Lifestyle for Two.

We want couples! As a member of the program, you are entitled to bring another person to every single course or tour. The cost for that extra person will be ZERO! You can bring whomever you wish. Bring your spouse, a friend, son or daughter, partner, accountant, adviser. You can bring the same person each time or a different person, whomever you choose to accompany you. (Accommodations and air fares relating to the courses are not included for members, delegates or their guests.)

The International Club fee of $1,799 is less than the price of two seminars.

I invite you to be a member of the International Club which allows you and your guest of your choice to attend all of these courses and tours.

Let’s prosper in these times of change. Won’t you join us in this exciting club and share Merri’s and my lifestyle for the next year? Join us at our farms and visit Ecuador. We look forward to seeing you at as many courses as possible and sharing this wonderful world of abundance and well being with you!

Gary

You can attend all of our seminar , courses online courses and more plus $1,246 of online value.  Club membership is $1,799. 

Become an International Club  Member $1,799 annual.

Attend as many of the courses below as you desire.

June 14-15-16   Super Thinking & Writer’s Camp West Jefferson, NC.

August 31- September 1-2 Super Thinking & Writers Camp at Merrily Farms, NC.

October 4-5-6 Super Thinking & Writer’s Camp West Jefferson, NC

November 15-16-17  Super Thinking & Writer’s Camp Mt. Dora, Florida

January 10-11-12, 2014 Super Thinking + Spanish  Mt. Dora, Florida

February 14-15-16, 2014  Super Thinking & Writer’s Camp  Mt. Dora, Florida

In additional Super Spanish courses will be scheduled in Canada, Mexico. and the US throughout the year.

(Dates subject to change).

Join us in 2013 and learn how to take advantage of the fact that the Sun Always Shines Somewhere

Yes, I want to become an International Club Member. 

Annual membership $1,799. Click  here.

Read the economic tug of war

One reason we need global investment income is that the US dollar is falling… and more.

Yesterday’s political turmoil is the most serious we have seen in our fifteen years there.  This may enhance opportunity in Ecuador long term… but also reminds us of  the need to diversify.

There are causes of concern beyond the political unrest. The first being…

the fall of the greenback… Ecuador’s as well as the USA’s currency.

This chart from finance.yahoo.com shows that as of yesterday the dollar had fallen from about $1.20 to buy one euro to $1.37 to buy the same euro.  Since the dollar is the currency of the USA and Ecuador… residents in both countries need to spread their savings and investments into other currencies.

Welcome to October. Our message last week, October Investment Risk warned about the Ides of October and how this can be a bewitching month.

Already on the first day of October we can see several events that could create havoc in global stock markets.

First, the falling US dollar as shown above. Risk adverse investors have been fleeing to dollar bonds. Now where will they go? The ensuing confusion will not be good.

Strikes in Europe. One of our readers who is headed to Ecuador shared this note: Hello from rainy Brussels where I am stuck for an extra two days because of air traffic control strikes which shut down Belgian airspace until tonight.  I am so glad to be away from Europe.  The Spanish and French Air Traffic Controllers have also been on strike for the last few days so traveling by air in Europe is really challenging. Plus a French railway strike started last Thursday.

Strikes in Ecuador. Latin America has been one of the strong performing market segments so instability in this region could be a spark for an October run as well.

Add them together and…. who knows, but you have been warned.

There are great opportunities created by potential problems.  In fact these difficulties are currently creating profit for me.

Take for example the opportunity in the falling US dollar.

In a message Portfoilo Allocations 1-2010 January 14, 2010, I wrote how I had borrowed the equivalent of 9% of my portfolio in US dollars to invest in Mexican peso, New Zealand and Australian dollars.

In another message Global Multi Currency Economic Update July 1, 2010, I wrote:  The biggest of the seven trends I have cashed in on over the past 42 years has been the declining US dollar.

There are several ways to speculate against the greenback.  Personally I use the multi currency sandwich. I borrow dollars at low interest rates and invest the funds on dollar related currencies…. currently the New Zealand, Canadian, Australian dollars and Mexican peso.

This is a slow, partly hedged speculation versus the dollar… but forex profits are not my main goal.   The interest differential is what assures my profit… if I can wait for the dollar to drop.  My loan cost on dollar loans is currently below 3%.   My average yield is 6.31% so I am paid about 3.31% to borrow the dollar.

100K ea.

MXN BONOS  10% Due 2024 117  = 8%

EUR INVT BNK AUD 6.0 2013 101.49  5.56%

EUR INVT BNK NZD 6.5 2014 104.77  5.38%

Average 6.31%  + $18,930
Loan cost      $   9,000
Return           $   9,930

Plus I have Forex profit potential.

So far the year, this loan has been paying me $9,930, plus as the dollar falls I have a chance of a nice extra forex profit over the year. As another chart (of the Mexican peso to the US dollar) from finance.yahoo.com shows, there have been ups and downs all year, but I have made a nice forex profit on the peso I made the loan in 2009.

Plus there could be more forex profit if the September 30, 2010 Bloomberg article entitled “Mexico Peso Set for Biggest Gain in 19 Months on U.S. Housing, Employment” by Jonathan J. Levin is correct. This article says: Mexico’s peso is headed to its biggest monthly gain since February 2009 after U.S. housing and employment data limited speculation that the country’s biggest export market may return to recession.

The peso rose 5.2 percent to 12.5511 per dollar at 9:58 a.m. New York time, from 13.2046 on Aug. 31, the best- performing major Latin American currency tracked by Bloomberg. It gained 2.5 percent during the third quarter. The U.S. buys 80 percent of Mexico’s exports.

“All the fears of a double-dip recession in the U.S. are dissipating,” said Ramon Cordova, a currency strategist at Base Internacional Casa de Bolsa SA in Monterrey, Mexico. “I see a positive outlook for the rest of the year.”

U.S. initial jobless claims decreased more than forecast, by 16,000 to 453,000 in the week ended Sept. 25, Labor Department figures showed today in Washington. Claims were projected to fall to 460,000, according to the median forecast of 47 economists surveyed by Bloomberg News.

Builders broke ground on 598,000 homes at an annual rate in August, up 10.5 percent and the most since April, the Commerce Department said Sept. 21.  The yield on Mexico’s 10 percent bond due in 2024 rose four basis points, or 0.04 percentage point, to 6.48 percent, according to Banco Santander SA. The price of the security fell 0.5 centavo to 132.58 centavos per peso.

Plus my bonds in Australian and New Zealand dollars have brought a forex profit as well as the finance.yahoo.com charts show.

Here is the Aussie and…

the Kiwi.

The Kiwi forex profit is not much… but keep in mind my loan has cost 3% the Kiwi dollar bond has paid me 5.38%.

This does not mean you should run out and invest in Mexican, Australian and New Zealand dollar bonds.

This was the ripe investment a year ago.

Now with investors rushing into bonds… prices are not as attractive.  They may fit as part of one’s portfolio, but we have been looking more at high yield equities.

We’ll review 54 such equities in dollars, Singapore dollars, euro and other currencies at our October seminar.

Plus there is opportunity in real estate… almost everywhere.

Plunging real estate prices…. low interest rates and future inflation are three ingredients for explosive profits.

One of the high yielding shares shares I like philosophically is the Suntec REIT in Singapore.

Real estate makes a lot of sense to me now. Real estate prices have been crashing and creating some great values.  Asian real estate makes a lot of sense and Singapore is one of the most trustworthy places to invest in Asia.

Suntec Real Estate Investment Trust (SUN SP) is one of two Singapore-traded REITs controlled by Hong Kong billionaire Li Ka-shing. Li used to be a neighbor long ago when I lived in Hong Kong and is very shrewd, needless to say.

New Singapore Casino.

Singapore has allowed two casinos to open.  I am sad to see this as Singapore used to have strict attitudes about gambling and casinos.  Lee Kuan Yew once said there would never be a casino in Singapore but these are two lavish locations opened in 2010, that will attract tourists and gamblers. Suntec’s main property is next door.

With just two casinos Singapore has already become a rival to Las Vegas.

Second quarter 2010 winnings put Singapore on track to have a $4 billion casino market on an annualized basis according to the Wall Street Journal. That’s just 20% below what Las Vegas is expected to do this year.

Suntec REIT’s has office and retail property next to the new casinos.  Suntecs office portfolio has 97.6% occupancy while the retail portfolio has 98.7% occupancy.

Asia has great potential and the Singapore dollar has excellent underpinnings.

Phillip Securities Research meanwhile is holding its forecasts and projections and maintains the Hold recommendation with fair value of $1.34. “We think management has done a good job in maintaining occupancy for the retail portfolio and improving the occupancy for the office portfolio. Note that office portfolio occupancy improved from 94.8% in 2Q09. Although reversionary rents probably softened in the wake of this, nonetheless leases were secured and mitigated the risk of tenants migration.”

The good thing about REITs is their stable dividends,” this time when bank deposits have very low interest.  Individual investors pay zero tax on the distributions, regardless of their nationality.

Singapore-listed REITs are required to distribute at least 90% of their taxable income to unitholders, which makes them more attractive to those seeking dividends.

Suntec REIT ticker symbol of (SUN.Singapore), owns premium retail and office properties in Singapore next to new casinos. The company has paid uninterrupted dividends every quarter since it went public in 2007.

The shares are also traded on the Frankfurt exchange with the symbol (Frankfurt: P3G.F)

Smaller investors can participate in this trend also as there are numerous US mutual funds that invest in these type of shares.

A September 20, 2010 Morningstar article “Yield to Yield – Some dividend funds offer more, or less, than investors bargain for” by Katie Rushkewicz says: Income-seeking investors have been in a tough spot lately. Bond, CD, and money market yields are paltry. Pitiful fixed-income yields might make stock dividend yields look attractive by comparison, but they come with extra company-specific and market risk. The 15% tax rate that most stock dividends have enjoyed for the past seven years could expire at the end of the 2010.

However, more companies seem well-situated to reinstate or increase their payouts after using the aftermath of the financial crisis to pay down debt, bolster balance sheets, and amass cash. Some high-quality companies, like  Johnson & Johnson JNJ, even offer dividend yields higher than the yields on their 10-year corporate bonds. This rare phenomenon makes dividend-paying stocks more appealing to income-seeking investors. So does market volatility, because dividend-paying companies tend to be defensive.

Funds That Do It Well

Dividend funds can assume many identities, so it’s important to know what you’re getting into before buying. Some fund shops and managers have built long, successful track records using dividend-focused strategies.

Funds mentioned favorably include:

* Legg Mason ClearBridge Equity Income Builder (SOPAX) – Minimum investment $1,000.

* Vanguard Dividend Growth (VDIGX) – Minimum investment $3,000.

* American Funds Washington Mutual (AWSHX) – Minimum investment $250.

Gary

Join us next week at our North Carolina Conference, Autumn in the Blue Ridge. Learn about real estate in the USA, Ecuador and Singapore as well as see a review of 54 high yielding shares.

Super Thinking + International Investing & Business Seminar

Super Thinking + International Investing & Business Seminar, February 1-2-3, 2103 in Mt Dora Florida.

This is the premier seminar we have been conducting every February for over 30 years.  This February is special because the best opportunities come at the darkest hour and that time is here.  Learn how to…

#1: Borrow yen at 2.5% and gain a 5% profit in three weeks.

#2: Turn $499 into $142,020… per year.

#3:  Buy a beach view Ecuador home for $16,000.

Review these ideas in warm and sunny Lake County, Florida, with over 1,000 named lakes and the charm of historic Mt. Dora. This a special place especially at the this time of year.

(Click on photo to enlarge).

These are balmy winter days I shot of the Florida winter from…

my canoe.

Forces have come together for the biggest economic expansion in history.   Huge profits are waiting in business and investing… whether you are just starting… in the middle… are ready to retire or want to start an entirely new career.

One reason for this timing is cyclical.  Equity markets are selling at some of their best valuations in years.

This optimistic outlook is based on the development of earnings, cash flows, dividends and book values.

When you look at the big picture… from the turn of the century until now the entire global economic history has been a series of slow downs and catch ups,  but over the long run  values in the stock market have risen about 9.1 percent, respectively, compounded annually.

There are always emotional reasons for slow downs…  as we have seen in the past five years…  the worries of double dip recessions… high unemployment… concerns about fiscal cliffs. Such fears hold investors back.  Yet  global population growth and advances in production and prosperity are relentless.   Values increase as prices stagnate. Then markets break free and rocket upwards creating wealth, prosperity and growth.

Economic breakouts create fortunes.  This February we get to share with you three… enormous profit possibilities…. one in business…. one in investing and one in Ecuador.

All the facts have come together.   The next boom is about to begin.

We can see the power of breakouts from the last BIG ONE in 1979.   Warren Buffett 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 Buffett 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.

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.

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

Make no mistake… 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 boom.  This is why I want to kick off 2013 with you and share more than my usual confidence and enthusiasm. 

The upcoming February seminar is divided into three main sessions.

Each session helps you learn how to gain freedom, remove stress, earn more and do more good in and for the world.

Session One :  International Micro Business – “How to Have a Positive Global Income”.   You can turn $499 in $142,020 a year, even in small towns.

Session Two : Ecuador Living and Real Estate.

Sessions Three:  International & Value Investing Outside the Box.

Here is a partial syllabus of the seminar:

SESSION ONE:  How to Turn Your Passion into a Profitable Microbusiness.   A micro business can be the best investment you can make. Start small and magnify your investment with your effort, enthusiasm and energy.

* Turn $499 into $142,020 through writing and publishing… without risk.  In just one year.  Cash in on the blowback from the global community.  The global economy is good but big business… big government…. big medicine and global everything is also impersonal, often harsh and inhumane.  This expansionary process leaves us believing in nothing.  We are cynical of the global banks… the aggressive police… the intrusive government… the big church… the monetized medicine… the negative media… the unfair laws…. the failing currencies… all the broken promises.

Yet as humans, we have to believe in something and our last bastion… the one we can see, hear, taste, smell and feel is our local community… either as a  place or as a collection of like-minded souls.

This is also where we can actually accomplish something and actually have an impact at doing some good.

On January 1st, 2013, Merri and I launched a new business “Positive Community Magazines” (PCM) with David Cross our webmaster and Dave & Sherry Johnson. This opportunity is for anyone young or old.  PCM offers excellent income… less stress, fulfillment and positive service to the community.  This business helps publish positive community magazines in small towns or to small communities of highly focused, like-minded souls.

Warren Buffett believes so much in this potential that he is buying newspapers in small towns all over America.

In 2012 Berkshire Hathaway purchased 63 small and mid-sized daily and weekly newspapers throughout the United States.

He plans to buy more and says: “I like buying individual papers at the right prices.” 

Buffett stated that Berkshire is not buying big newspapers or more newspaper shares because he believes in the value of local communities.

In February, you’ll meet Dave & Sherry Johnson who had a good life until times turned sour during the 2007 recession.  They lost everything so they moved to Asheboro, North Carolina which Forbes magazine highlighted as “One of America’s Ten Fastest-Dying Towns in the USA”.  They started a community magazine and from the ashes it has risen from success to success.   They now earn over $17,000 a month.  They came to our Writer’s Camp.  We saw their amazing business model and let no moss grow under our feet before asking them if they would help us spread this incredible concept around the world.

We know trends when we see them and this is even more exciting than the trend we saw in Ecuador’s expansion 17 years ago.

As an Independent Community Publisher of Positive Community Magazines, you will publish positive, upbeat community publications dedicated to representing, encouraging and celebrating the community you serve by focusing on the lifestyles, talents, gifts and contributions of the people who live and work there.  Plus you’ll earn as much as $17,635 a month.

Learn how to gain a proven business model with training – archive of articles – design templates – access to low-cost printing – marketing materials – and a very, very low investment (as little as $499) to start.

The Money – Here is the Proforma Income for a 64-page Magazine

In the model magazines the ad revenues run around $13,000 (40% ads/$500 per ad page) and editorial revenues of $4,635 or a gross income of  $17,635 a month.

Printing  and operational expenses are in the $5,800 range leaving  profits of $11,835.  You increase the bottom line if you do more of the design and distribution work yourself.

Other advantages of magazine publishing include the freedom to set your own schedule,  PRESS credentials, prestige, service to the community, philanthropy, being in the know and having a well respected profession.

Saves Lives.  Here is just one example of the good you can do. Sherry Johnson shared this story.

She wrote: Gary,  we even save lives.  In one issue of their magazine they told the story of a little boy who was struggling with a rare disease that caused life-threatening seizures.  One day, while his mom was out shopping, the little boy had a seizure so she rushed him to the hospital.

She called ahead and the nurse met her at the emergency room.  As it happens, the nurse had read the article in the magazine (which someone had brought to the nurse’s lounge) and she recognized the little boy from the article.  Since she knew immediately what was wrong with him, no time was wasted and he was treated quickly.  They were told that this particular seizure was especially bad and that the article probably saved his life.  This doesn’t happen every day but once in a lifetime is good enough!

Downtown Mt. Dora, Florida

Another session in the seminar shows “How to have an international micro business.”  These sessions are highly practical and usable. They focus on how to use modern technology to start global micro businesses based around a website, with minimal investments of time and capital.

By starting small and building with stepping stones and a harmonious focus, Merri and I have learned how to own profit generating phrases at Google.  We, along with our webmaster, David Cross, share the secrets of how you can use words to create your own global income.

The seminar shares how we us “Seven Ps”  (Person, Problem and Promise, Product) to zero in on key word phrases.  The Fifth P (Promise) develops new customers. The Sixth P is the Prospecting Path and Seventh P is the Presentation that creates income.

Learn about other microbusiness possibilities…

In the global micro business sessions we’ll see ideas on how to:

* Create Export Businesses

* Earn from Self Publishing and Writing

* Develop Internet Sales

* Cash in on Ecuador Business Ideas

* Find Organic Agricultural Business Ideas

* Profit With Health Business Ideas

* Turn Ideas for Tours and Seminar Businesses into Profitable Lifestyles

* Create a Multi Dimension extra income lifestyle.

Multi dimensional living can create a lifestyle that brings better health and lasting “real” wealth.  Many readers  are choosing a multi dimensional lifestyle, living on a farm and earning in other ways such as writing.

Activity on the farm in North Carolina. It’s tax deductible and profitable but…

I cannot call it work.

Merri and I have been fortunate. The self publishing business has treated us well.  However a great deal of our financial stability also comes from being multi dimensional.  We have lived on our own farm and seminar camp and orange grove and in our own Ecuador hotel and hacienda.  We are always fixing things up…. buying broken places or taking broken ideas and making them whole.

For decades we have been buying houses and fixing them… painting, restructuring and such.  This is our hobby… that happens to be profitable… or maybe that’s our business and writing is the hobby that also happens to be profitable?

The point is what we do is not work.   We just regularly do what we love and figure out how to earn income in the process.  The adage framed on my desk given to me by a beloved Indian Pundit is “Action is Thy Duty… Reward Not Thy Concern“. With this motto and a bit of common sense living joyfully and earning merge.

Our daughter, Cinda, and David Cross, our son-in-law webmaster and granddaughters, Sequoia and Teeka, have taken this lifestyle route as well.   Cinda loves animals so is a veterinarian and specializes in animal acupuncture which she can do at their farm.

David has his website and voice-over business he can run from their farm and the girls love working in the gardens.

David and Cinda’s multi dimensional farm. They now produce 60% of their food and earn extra income selling their excess organic crops.

Using the Bio Degradable “Bio Wash” to gain added value we have been able to double our production and quadruple the profits in our orange grove.

In the multi dimension segment of the seminar we review how to spot “live on agri and B&B opportunity” in small towns and Ecuador.  We’ll also look at Bio Wash, that we have supported now for nearly 20 years. We’ll show the environmental as well as health and business benefits it brings.

Join Merri and me at our Super Thinking + Investing and Business Seminar – February 1-2-3 , 2013, Mt. Dora, Florida.

Enroll here $799.   Couple $999

See  How to Attend this Seminar for $177 instead

SESSION TWO: Ecuador Living.  Talk about catching an early wave… Merri and I caught the Ecuador expat trend right at its beginning 17 years ago.   We brought readers who joined us in Ecuador then… some amazing opportunities.  This cycle has matured but there are still great bargains if you know what to do.  No one has as much experience and as many contacts in this field. This experience is also dependable.  We do not sell Ecuador real estate so you won’t be hearing any hidden agendas.

A beach house for $16,000?  Is that bargain enough?  You cannot beat experience when it comes to learning all the ins and outs and buying real estate in a country like Ecuador.

For example after more than a dozen years of traveling… working… buying and selling real estate and running businesses in Ecuador… we led Jean Marie Butterlin from France to the coast and he began scouring the beaches from Manta, north to Pedernales… finding the bargains…. meeting the landowners…  understanding the rules, regulations and customs.

That experience made him the expert of Ecuador beach real estate so that bargains could be found and so his clients could overcome the biggest problems and intelligently buy real estate on the coast.

We’ll share how to  buy beach property intelligently.

Here is Jean Marie’s second beach home…. secluded overlooking this…

isolated beach home for just…

$16,000.

You’ll learn how to overcome one of the biggest mistakes most real estate buyers make on the beach.

Dr. Andres Cordova will speak and join me in updating Ecuador real estate and residency rules.

Dr. Andres Cordova speaking at our seminars.

Andres is our friend and Ecuador attorney. He is the grandson of one of Ecuador’s more famous presidents and was a senior partner in a law firm that represents Ecuador’s treasury.

We’ll also review how to create an Ecuador export business as Merri and I have for many years.

Roberto Ribadeneira speaking at our seminar about how he can shop, ship and charge for Ecuador export businesses.

We’ll review the Ecuadorshop Logistics service that provides all these services for exporters in importers into the USA.

We’ll share how Roberto provides an exclusive service that helps readers who export from Ecuador monitor production and quality and assure timely delivery.

This is a great service that provides every detail for importing products into the USA.   We have used this logistics service ourselves for years and became the largest shipper of Ecuador roses last Christmas.  One big benefit is that the service can send each product direct to the buyer in the USA.  The Ecuadorshop Logistics service makes small and medium scale Ecuador exporting possible.

Join Merri and me at our Super Thinking + Investing and Business Seminar – February 1-2-3 , 2013, Mt. Dora, Florida.

Enroll here $799.   Couple $999

See  How to Attend this Seminar for $177 instead

Session THREE  – International & Value Investing Outside the Box.  This session shows how to protect your investments and savings, plus what to do with extra profits you’ll earn.

The educational program Merri and I have developed uses a different form of frequency modulation that opens enormous opportunity for expansion, understanding, peacefulness as well as greater wealth.

FM teaching uses frequency (in music and with each sense… sight…. smell, tactile and even smell) to integrate brain waves so the process of absorbing, processing and recalling information is vastly accelerated.  This brings forth the three C’s:  Calm, Clarity and Coherence.

FM creates relaxed concentration… a key to happiness, health and success.

You learn whole brain thinking that can help improve your freedom, satisfaction and income through business.

This part of the seminar helps us integrate their brain waves so they are more intelligent, intuitive and relaxed.

The Super Thinking sessions show three ways (baroque music, relaxation and nutrition) to get into and stay in a state of relaxed concentration… a mental state shown to enhance almost every human capability… especially writing.

Merri and I are explorers so we have used this techniques for decades. We  are always looking for what’s next… trying to stay on or ahead of the leading edge and need ways to think outside he box.

The Super Thinking sessions share how we do this to live better…. using frequency modulation to be smarter… stronger…. more energetic… more aware, friendlier, compassionate, happier and healthier.

We are in our 45th year of business and we share what we have learned and where this is leading our activities in our upcoming seminar. Join us.

Spotting new trends and applying them to our micro business has brought us a strong and continual flow of income through good times and bad.  More importantly the process has been fulfilling…. beneficial to society and healthy.    Now you can benefit from the latest… and perhaps strongest… of all the trends we have stumbled upon.

Applying the concepts of super thinking to spotting trends over the past 45 years has helped thousands of our readers make and save millions.   The success of our readers has been a driving force in our lives yet we have always wanted to do more so continued looking deeper at ways we can share how to have income, stability, good health and contentment.

Join us to learn our most recent experiences and most advanced concepts and ideas.

Join Merri and me at our Super Thinking + Investing and Business Seminar – February 1-2-3 , 2013, Mt. Dora, Florida.

Enroll here $799.   Couple $999

There are two more Reasons to be in Mt. Dora February 1-2-3.   One is old time values.

The Lakeside Inn seen from Lake Dora.

130 years ago three local, and reasonably successful individuals, sitting around around one afternoon when one of them says “hey… lets build a hotel”.  The three agreed, plans were drawn up, materials were ordered and work began.  The year was 1883, Mount Dora was still called Royellou, Chester Arthur was President, and it would still be several years before the railroad would make its way in to town.   This leaves the Lakeside Inn as the oldest, continuously operated hotel in the State of Florida.   The Inn is just across the street from our meeting place and is celebrating its 130th Anniversary throughout 2013 with a number of special events and celebrations.

Mt. Dora Arts Festival.  This is is ranked in the top hundred art shows in the US. It’s a juried fine arts festival, for art lovers, casual festival-goers and families.

Downtown Mount Dora, with its New England architecture and breathtaking views of Lake Dora is the backdrop for this event. In addition to the endless rows of fine art, including oil paintings, watercolors, acrylics, clay, sculpture and photography, the festival features local and regional musical entertainment at a main stage in Donnelly Park.

The event draws over 300,000 visitors and features more than 285 artists from all over the world.Super Thinking + Investing and Business Seminar -

Join Merri and me at our Super Thinking + Investing and Business Seminar – February 1-2-3 , 2013, Mt. Dora, Florida.

Enroll here $799.   Couple $999

See  How to Attend this Seminar for $177 instead

Join Merri, me and the following speakers:

* Thomas Fischer of Jyske Bank, who will talk about International investing, forex, plus borrowing low to invest high.

* Rich Checkan of Asset Strategy who will update the state of the precious metals markets.

* Dr. Andres Cordova updating Ecuador real estate and monetary, residency and tax regulations.

* Dave and Sherry Johnson. How to turn $499 into 142,035 with Positive Community magazines in small towns.

* Shirley Peacock.  Lake County real estate.

* Mike McDonald. Aegis Capital Corp.

* Lou Shinamin. Ruggie Wealth

* Larry Grossman. Sovereign Pension Management.

Join Merri and me at our Super Thinking + Investing and Business Seminar – February 1-2-3 , 2013, Mt. Dora, Florida.

Enroll here $799.   Couple $999

See  How to Attend this Seminar for $177 instead

Read Mexico Peso Set for Biggest Gain in 19 Months on U.S. Housing, Employment

Read Yield to Yield  Some dividend funds offer more, or less, than investors bargain for

See more on Suntec Reit

Jyske Global Asset Management seminars in 2010 may help your portfolio survive and grow.

Sadly at a time when American investors need more multi currency investments and a better global view, overseas banks are increasingly restricted from helping US investors.  Anti tax evasion, money laundering and anti terrorism regulations have created so many regulations on banks that increasing numbers of overseas banks have stopped accepting US investors.

Yet at this crucial time when the US dollar has great fundamental weakness, US banks have little experience in helping its clients invest in other currencies.

This is why Jyske Banks upcoming April 2010 Forex Seminar in California may be helpful to you.

I talked about green investing with these speakers at the Jyske 2009 Naples seminar.  Here I am with other speakers, Left to right: Samuel Rachlin,  Rich Checkan, Steve Blumenthal, Joe Cox, John Mauldin, Gary Scott, Lars Stouge. Thomas Fischer Moderating.

Fortunately for me and readers,  Jyske Bank in April 2008 set up Jyske Global Asset management as an Asset Management Company servicing US clients called JGAM.

During the first 9 months JGAM  had to help their US clients cope with the worst financial crisis since the thirties.

They changed the investment strategy accordingly and over weighted their clinets portfolios in defensive investments.  During 2009 they became cautious optimists and began increasing the exposure towards equities and corporate bonds.

All investment decisions in JGAM are carried out by an Investment Committee who meet at least once a month.  Every member in the committee has responsibility for an asset class.

JGAM offers a number of portfolio’s depending on the size ranging from low risk to high risk… with or without leverage.

Since May of 2009 JGAM  also offers managed IRA accounts.

JGAM’s portfolios have performed very well in 2009  and the performance opf their client’s portfolios range from 10-33% depending on size and risk profile.

The IRA portfolios which were established in May 2009 has returned between 12% – 18%.

JGAM offers two types of multi currency service for US investors.

US investors can have a fully managed portfolio or have an advisory account where they make their own decisions.  For clients living in the US the advisory accounts come with many investment restrictions.

Managed portfolios are best for most US resident Americans.

Americans living outside the US can have advisory accounts without limitations regarding the investments.

Jyske Bank Copenhagen is the custodian for all JGAM accounts and for larger clients Jyske offers a VISA debit card associated with the account.

The VISA card comes with restrictions. It is a debit not credit card and normally requires a minimum balance of two times the spending limit PLUS  a minimum  investment account with JGAM of $50,000.

JGAM maintains a close relationship with its clients, makes regular visit to the US and provides a direct phone line for each client to an investment adviser.  JGAM also visits its clients in Ecuador as they participate in seminars that I and International Living conduct in Ecuador.

Beginning in 2009 JGAM also started conducting  their own seminars.

Last years seminar was in Naples Florida.

The 115 delegates reported that they really gained from listening to what we had to say and…

talking among themselves during the coffee brakes and at meals.

One benefit of these seminars is talking to an overseas banker.  Here I am at the seminar  with my Jyske account executive Anders Nielsen.

In April 2010 JGAM will conduct a Foreign Exchange seminar in Laguna Beach California.   In August JGAM will venture with Jyske Bank to conduct a seminar in Copenhagen.

JGAM is a fee based only company. Their only objective is to make money for their clients.   All JGAM employees, as with Jyske Bank,  are on a fixed salary WITHOUT BONUSES.

2009 was an extraordinary year and JGAM does not expect a repeat in 2010 as they expect central banks to begin withdrawing liquidity from the market.

JGAM does expect some interesting theme based investments in 2010. Clean energy will probably play an important role as governments across the globe focuses on the climate.  JGAM believes that the “climate aspect” has to be integrated into future investments, and that such a strategy can offer good returns.

They have already invested in iShares S&P Global Clean Energy Index.

This Exchange Traded Funds (ETF) aims to track the S&P Global Clean Energy Index and offers exposure to 30 of the largest publicly listed companies around the world that are involved in clean energy related businesses.

JGAM expects many country’s to tighten monetary policy (Australia and Norway have already started) which will create tension and volatility in the currency market.

JGAM plans to take advantage of these investment possibilities also in 2010.

Merri and I will join JGAM  at their Laguna Beach seminar where you can be introduced to foreign exchange trading and investing in general. I will speak at the seminar and review my portfolio… why… what and what if.

The Laguna Beach forex seminar will be conducted 30 April  to 2 May 2010.

You will have the opportunity to:

• find out about JGAM’s BRAND NEW upcoming Managed FX Portfolio

• find out how JGAM  use’s currencies in our portfolios

• find out how you can take advantage of the profit
opportunities available with foreign exchange trading

• learn about and ask any FX questions that you didn’t dare to ask

• discuss key foreign exchange topics in greater depth than normal

• network with currency experts and JGAM’s experts.

For more details about the seminar contact Thomas Fischer at fischer@jgam.com

Gary

The US and Ecuador property market offers a rare opportunity to make money in this multi currency era. Here is an excerpt from a recent multi currency update.

Two economic forces have come together to create extra special profits.

I know because the same  combination occurred in London during the late 1970s and allowed me to increase an investment eleven times in two years by buying property then.

Earlier in 1970 I had lived in London, England for a year, then moved to Hong Kong. During that time I also maintained a home outside of San Francisco, California.

This was a time of great inflation. My homes in California and in Hong Kong appreciated greatly. In the mid 1970s, when I moved from Hong Kong back to London, I noticed that London real estate was priced about the same as it had been in 1970. This puzzled me. Why had London property prices remained flat despite inflation?

On investigation, I learned that there had been a huge real estate crash in 1970 which continued to dampen real estate prices six years later despite the rampant global inflation. I felt this was a great distortion as European property prices had risen, but London prices had not. Yet London offered the best utility as the center of the English speaking world. This, to my way of thinking, created a huge distortion.

It’s late 1976. Britain faced  a sterling crisis. In less than two years the pound has fallen from $2.40 to $1.60. Investors had no faith in the British economy, or the government that ran it. The government’s budget was a mess.  Investors  were ditching the pound.

The plummeting pound pushed the economy to breaking point. Prime Minister Callaghan, in desperation borrowed as much as possible, £2.3 billion from the IMF.

At that time, the British pound collapsed to its lowest level ever (a pound per dollar for a short time) so the distortion widened. This meant in US dollar terms London property had dropped almost 50% while property in other major cities of the western world had increased in price by three or four times.

The house I bought was right next door and very similar to this house in Bedford Park, London W4.

This house in West London was 34,000 pounds, 9,000 pounds down (then $9,000).   I took a mortgage for 25,000 pounds ($25,000).  I lived in the house and three years later the pound had recovered to 2.2 dollars per pound plus London real estate had caught up with property in other major western centers. I sold the house for 115,000 pounds or $253,000 a profit of $244,000 on a $9,000 investment.

Now it’s the US dollar that is very low.

You will have seen articles something like the the September 7, 2009 Bloomberg article “Weak Dollar? Currency, at 10-Year Low, May Fall More” by Bo Nielsen.

An excerpt says: Anyone who says the dollar is weak after it fetched a record-low $1.3681 against the euro and the fewest pence against the pound in 25 years is expressing a euphemism.

The currency may decline at least another 10 percent by the end of 2008, say Jay Bryson, an economist at Wachovia Corp., and Kenneth Rogoff, the former chief economist at the International Monetary Fund. The dollar has only fallen 3.4 percent in the past two years to a 10-year low, according to a Federal Reserve index that weighs trade with 38 countries including China, Mexico, Canada and countries in Europe. It tumbled 30 percent in the three years ended 1988.

“Dollar weakness will be broad-based and could last for years,” said Bryson, a global economist at Charlotte, North Carolina-based Wachovia who previously analyzed currencies at the Federal Reserve.

Investors are dumping dollars, lured by higher returns elsewhere. The U.S. will grow more slowly than Europe for the first time since 2001 and Japan for the first time in 16 years, the IMF forecasts. The difference in yield between 10-year German bonds and Treasuries has shrunk to the smallest since 2004.

Those who read this site regularly or subscribe to our multi currency course know that I reported my personal portfolio and recommended getting out of the US dollar in February 2009. See that recommendation here.

I showed that my portfolio was 86% out of the greenback.

My liquid portfolio currency allocation was reported as Brazilian real  4%,
 Denmark kroner  33%
,  euro 31%
, British pound 10%
, Turkey lira 8%
, US$ 14%.

I also mentioned in February that I was going to start buying Florida real estate.

So Merri and I began looking and in our research found that there appears to be a hole in the market for Central Florida property selling in the million to $750,000 range.  There seems to be no buyers at all. We have been watching prices tumble hundreds of thousands.

We are viewing one property next week that started at $800K+. It just dropped $100,000 last week from $395,000 and is now down to $295,000.

This is about a 25% drop in that house’s price in six months. That’s pretty good!

Now look at what this means in depreciated dollar terms.

Here is a chart of the euro to US dollar from yahoo.finance.com from February 2009 to September 10, 2009 when this was written.

In February a US dollar bought .80 euro so that house at $395,ooo cost 319,200 euro.  Now a US dollar buys about .68 euro so this house at $295,000 costs about 200,000 euro.

That is a drop in that house price of 37% in six months in terms of euro. That’s even better!

Here is the magic in this hidden, built-in profit.  For most of the market, the profit is hidden.  Most investors are not comparing currencies and real estate prices.  Yet these distortions will filter through. Eventually European investors…. or those like me who are holding currencies other than dollars will see this distortion and cash in.

I, and now you, just have an advantage because we are always looking at both markets… currency and real estate.

Ecuador Real Estate Cheaper as Well

This also creates better value on Ecuador real estate. Take for example one penthouse property I am selling at $139,000.

This is a perfect property for those who want peace… quiet…and instant access to miles of empty, warm Pacific beach.

This two room, top floor penthouse is at Palmazul and includes use of the the swimming pool, tennis courts… and spa.   You can dine here, one floor below.

The units are fully equipped… kitchen…

with full size fridge.

Living room…

with a view…

leading…

to large private balconies…

with these views…

and sunsets to kill for.

Long walks on the beach… you can amble at low tide for ten miles and not see a soul.

Luxury bathrooms with bathtub…

and a king size bed with view and caressed by the ocean breeze.

This unit would have cost 111,000 euro in February. Now the price has dropped to 94,500 euro… just from the dollar’s fall.

The US and Ecuador property markets offers a rare opportunity to make extra profit now because of hidden added value from the US dollar’s fall. History suggests that real estate is a real asset so its price rises as the currency its counted in falls.

These corrections take time because most property owners do not calculate their property in multi currency terms.  Those of us who watch this can gain extra profit now.

The article above is an excerpt from a recent Multi Currency update. Learn more about multi currency investing. Subscribe to our multi currency course.

Gary

The greatest asset of all is the ability to earn globally in many currencies.

This is why we are providing a special three for one offer with our  course Tangled Web… How to Have an Internet Business. This can help you create your own internet business.

Our emailed course “Tangled Webs We Weave – How to Have Your Own Web Based Business” is a continuing educational program.  You receive the first 28 lessons when you enroll and a new lesson every week or two.

This course teaches how to create a web based business and is developed from the ongoing experiences that we have from our successful and profitable internet business.

This course is well worth the enrollment fee of $299… but currently you also receive two additional courses FREE.

The other two courses are #1: International Business Made EZ, and #2: Self Fulfilled – How to be a Self Publisher.

These two courses have sold for $398 and thousands have paid this price. We add them to your course at no added cost as I believe they will help you develop a better business in these crucial times.

Even Better Get All three Courses Free

To make this offer even more compelling,  I am giving everyone who enrolls in our North Carolina or Ecuador International Business & Investing seminar in October or November all three courses, “Tangled Web… How to Have an Internet Business Course,”  “Self Fulfilled- How to be a Self Publisher” and “International Business Made EZ” free.

Join us with Jyske Bank and my webmaster David Cross in West Jefferson North Carolina. Learn more about global investing, how to have an international business at the seminar.

Oct. 9-11 IBEZ North Carolina with our webmaster  David Cross & Thomas Fischer of JGAM

Or head south to Ecuador!

October 16-18 Ecuador Southern coastal tour

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

Join us with Peter Laub of Jyske Global Asset Management in Ecuador. Learn more about global investing, how to have an international business at the seminar.

Nov. 6-8 IBEZ Ecuador Seminar

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

Join us in the mountains and at the sea. Attend more than one seminar and tour and save even more plus get the three emailed courses free.

Attend any two Ecuador seminar or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799

Read the entire articles:

Weak Dollar? Currency, at 10-Year Low, May Fall More

Dollar Is Near Lowest in Almost Year as Borrowing Costs Plunge

International Currencies Made EZ is a total of 15 chapters and about 150 pages. You can access each chapter from here plus a Glossary of terms FREE below.

This course was last updated some years ago. We are pleased to share this information with you as we think you will find the currency principles as relevant as when this course first appeared. However many of the contact names and addresses will have changed and many of the statistics are not up to date. If you wish to make a specific contact and the details in this course are incorrect, please contact us and we will try to help you. Thank you.

See how to get an updated report on multi currency investing here.

Links for the FREE International Currencies Made EZ

You will find more information relevant to International Currencies Made EZ in the following pages:

• International Currencies Made EZ: Chapter 01
  International Currencies Made EZ: Chapter 1
• International Currencies Made EZ: Chapter 02
  International Currencies Made EZ: Chapter 2
• International Currencies Made EZ: Chapter 03
  International Currencies Made EZ: Chapter 3
• International Currencies Made EZ: Chapter 04
  International Currencies Made EZ: Chapter 4
• International Currencies Made EZ: Chapter 05
  International Currencies Made EZ: Chapter 5
• International Currencies Made EZ: Chapter 06
  International Currencies Made EZ: Chapter 6
• International Currencies Made EZ: Chapter 07
  International Currencies Made EZ: Chapter 7
• International Currencies Made EZ: Chapter 08
  International Currencies Made EZ: Chapter 8
• International Currencies Made EZ: Chapter 09
  International Currencies Made EZ: Chapter 9
• International Currencies Made EZ: Chapter 10
  International Currencies Made EZ: Chapter 10
• International Currencies Made EZ: Chapter 11
  International Currencies Made EZ: Chapter 11
• International Currencies Made EZ: Chapter 12
  International Currencies Made EZ: Chapter 12
• International Currencies Made EZ: Chapter 13
  International Currencies Made EZ: Chapter 13
• International Currencies Made EZ: Chapter 14
  International Currencies Made EZ: Chapter 14
• International Currencies Made EZ: Chapter 15
  International Currencies Made EZ: Chapter 15
• International Currencies Made EZ: Glossary of Terms
  International Currencies Made EZ: Glossary of Terms

Gary

See how to get an updated report on multi currency investing here.

How We Can Serve You

2013-2014 Super Thinking + Spanish – Writing to Sell – Investing & Business Course Schedule

Schedule 2013-2014  Super Thinking + Spanish  – Writing to Sell – Investing & Business Courses

Here are photos I took of Mt. Dora…

during…

its annual arts festival. 

Here is our Super Thinking + Spanish schedule for Summer 2013

June 14-15-16  Super Thinking  Writer’s Camp  West Jefferson, NC  (Gary & Merri Scott) Get details here 

June 21-22-23  Super Thinking + Spanish  St. Charles, MO  (Teacher Mark Frakes) Get details here 

July 5-6-7 Super Thinking + Spanish  Sarasota, FL  (Teacher Mark Frakes) Get details here 

July 12-13-14 Super Thinking + Spanish Kelowna, BC, Canada  (Teachers Shawn & Suzanne Bandick)           Get details here

August 16-17-18  Super Thinking + Spanish  St. Charles, MO  (Teacher Mark Frakes) Get details here 

September 27-28-29  Super Thinking + Spanish  St. Charles, MO  (Teacher Mark Frakes) Get details here 

October 4-5-6  Super Thinking International Investing & Business Seminar West Jefferson, NC    (Gary & Merri Scott)

November 15-16-17  Super Thinking Writers Camp Mt. Dora, Florida (Gary & Merri)  Get detail here

 For information more contact Cheri Hall at cheri@garyascott.com

Attend all seminars and courses and more FREE or at a discount as an International club member.  See details here.

2014

January 10-11-12,2014   Super Thinking + Spanish  Mt. Dora, Florida  (Gary & Merri Scott)

February 14-15-16  Super Thinking International Investing & Business Seminar  Mt. Dora, Florida

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