Tag Archive | "Latin America"

Hot Emerging Markets


One path to everlasting wealth is via the hot emerging market economies.

emerging-markets

This Latin path has led to some great profits. See where this path is below.

Yesterday’s message looked at the seven places where I am investing now that we reviewed at our June Quantum Wealth course.

#1: Multi Currency Spreads Increase Cash
#2: Value Markets
#3: Emerging Markets
#4: Wellness
#5: Water Alternate Energy
#6: Truth & Cohesion
#7: Real Estate

And we saw why Emerging Markets especially make sense.

A recent 10 year comparison of major versus emerging markets show some of the reasons that emerging markets are one of the seven places I like to invest in now.

A comparison of the Morgan Stanley Capital index Emerging Market versus Morgan Stanley Capital Index Emerging Market Index.

Annual Return   Emerging Markets 19.81%    Major Markets  10%

Emerging Markets Longest Down period 6 months – Major Markets Longest Down 6 mos.

Emerging Markets biggest downward drop 55% – Major Markets biggest downward drop  53%.

Emerging Markets PE ratio 12.9   Major Markets  PE Ratio 15.2.

Major Markets yield    3.70%.
Emerging Markets yield  3.22%.

In other words in a decade… Emerging Markets have appreciated nearly twice as much as Major Markets.  There has been little difference in the lengths or size of drops and Emerging Markets offer much better PE ratios.  The only area where Major Markets have excelled is yield.

Yesterday’s  message also reviewed the current best value Emerging Markets (according to Keppler Asset Mangement): Brazil, the Czech Republic, Egypt, Hungary, Poland, Russia, Taiwan, Thailand and Turkey.

Now let’s look at the Hot Emerging Market region… LATIN AMERICA.

Here is an excerpt from today’s www.Ecuadorliving.com article that explains why.

“In the first book I wrote back in the early 1970’s I wrote that ‘the sun always shines somewhere”.  This has been the motto of our publishing company since.

“On the eve of the 4th of July… a celebration of Independence, it may be fitting to remember this fact and that this celebration is about an attitude and way of life, not a place.

“The only source of real freedom comes from a strong economic base where everyone has a chance to live well.

“The history has been that industrialized countries provided this economic base of freedom and emerging countries did not.  So great fences have been built to keep the poor from moving to places where most are rich.  However as the tide changes we have to wonder… will the walls built to keep people out start keeping citizens in… like a Berlin Wall?

“Readers often ask me about Nationalization in South America.

ecuador-politics

Photo from May 6 Economist article on Bolivia nationalization.

“I often receive notes from unsettled readers writing with worries about Correa nationalizing all of Ecuador whenever politicians in Venezuela or Bolivia or Peru act up.

“These really are different countries… different people…. different political histories and Correa is quite different having risen from poverty via the educational route not military.

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Photo I took of Correa in Cotacachi.

“Yet the economic prosperity is growing in Latin America… as excerpts from the New York Times below explains.

“We can see the future in the here and now.  Plus our imagination is a value tool if we use it realistically and see ahead with an open mind.  Our forward vision is always blurred by the haze of quantum uncertainty that creates this  world.

“We should hedge our bets.

“One chapter there was about the ‘Concept Conversion Trick’ and says:

“The Concept Conversion Trick begins when people agree on a good concept for working and living together. The people go to work and if the concept is good they will create a paradise. The government gives them a flag and a song. Then the government pulls the trick. The government convinces the people that the flag and song are important. Then while the people are busy watching the flag and singing the song, the government replaces the concept with a set of ever increasing written rules and regulations administered by bureaucrats and backed up by a police force.

“This trick trades people’s individual freedoms for a shiver up the spine when the song is played and the piece of cloth is waved. The Concept Conversion Trick turns spirit into matter. Like trading love for a beautiful plastic doll. When the trick has been pulled and the dust settles, the people realize too late what has happened. Anyone who steps out of line is called unpatriotic or even criminal. He is swatted down by the bureaucracy or police force, crushed with overwhelming power or made an example of so others will tow the mark ‘for the good of society’. All this is done in the name of public interest.

“If this writing sounds prophetic having been written 25 + years ago, it was not. Any simple review of any previous great society shows this trick and evolution. Like the Roman Empire, things may get better for a while, then worse and then better again. In the long term, as societies age, they can lose their original vibrancy and life.

“Should we be surprised? Does not every single thing in this universal existence develop in the same way, vibrant and flexible while young and growing thicker and more brittle with age?

“My father loved animals and worked at the Portland City Zoological Gardens. He was a really kind, gentle, fair and scrupulously honest man. Yet one of his jobs was doing the zoo’s annual budget. I recall him spending weeks late at night (on his own time) working over these budgets each year. I also remember his telling me that every year they had to ask for more money because otherwise the city government would give them less. ‘If we do a good job with their funds, they penalize us,’ he told me.

“This is how the bureaucracy and society works, millions of small units each trying to grow and spend a little more, until the whole thing swells into an unstoppable mass of self-interest. This is the universal nature to grow until the growth becomes so excessive that balance is lost!

“This truth shows us the nature of mankind and every underlying force that goes from birth to continuity and then transformation. This is the way of life and if we are smart investors we recognize this and adapt.

“This is why I have almost always bet against the US dollar.

“This is why my business has been global for more nearly 40 years.

“This is why I have been so involved in Ecuador.

“My experience is that Ecuador is a very democratic free country filled with sweet friendly people. My bet is that the flag waving focus on drugs and terrorists and anti US sentiment will mislead a lot of potential investors and create bargains here now. That’s where I have been putting my money.

“An article in yesterday’s New York Times entitled Economies in Latin America Surge Forward by Moises Saman shows how correct this decision has been. Here is an excerpt:

“LIMA, Peru — While the United States and Europe fret over huge deficits and threats to a fragile recovery, this region has a surprise in store. Latin America, beset in the past by debt defaults, currency devaluations and the need for bailouts from rich countries, is experiencing robust economic growth that is the envy of its northern counterparts.

“Copper awaiting delivery in Valparaíso, Chile. Latin America has benefited from strong Asian demand for commodities.

“Strong demand in Asia for commodities like iron ore, tin and gold, combined with policies in several Latin American economies that help control deficits and keep inflation low, are encouraging investment and fueling much of the growth. The World Bank forecasts that the region’s economy will grow 4.5 percent this year.

“Recent growth spurts around Latin America have surpassed the expectations of many governments themselves. Brazil, the region’s rising power, is leading the regional recovery from the downturn of 2009, growing 9 percent in the first quarter from the same period last year. Brazil’s central bank said Wednesday that growth for 2010 could reach 7.3 percent, the nation’s fastest expansion in 24 years.

“After a sharp contraction last year, Mexico’s economy grew 4.3 percent in the first quarter and may reach 5 percent this year, the Mexican government has said, possibly outpacing the economy in the United States.

“Smaller countries are also growing fast. Here in Peru, where memories are still raw of an economy in tatters from hyperinflation and a brutal, two-decade war against Maoist rebels that left almost 70,000 people dead, gross domestic product surged 9.3 percent in April from the same month of last year.

“We’re witnessing what are probably the best economic conditions in Peru in my lifetime,” said Mario Zamora, 70, who owns six pharmacies in Los Olivos, a bustling working-class district of northern Lima where thousands of poor migrants from Peru’s highlands have settled.

“Vibrancy mixes with grit around his pharmacies. A Domino’s Pizza vies for customers with Peruvian-Chinese restaurants called chifas. Motorcycle taxis deliver passengers to nightclubs. Competition, in the form of a newly arrived Chilean pharmacy chain, looms around the corner from his main store.
Los Olivos offers a glimpse into the growth lifting parts of Latin America out of poverty, but big exceptions persist. In Venezuela, electricity shortages and fears of expropriations caused gross domestic product to shrink 5.8 percent in the first quarter.”

The path below is right outside of Cotacachi, Ecuador.  See the rest of this article at today’s Ecuador Living message that shows why Latin America is a “Growing Place to Be”.

emerging-markets

This is why I have invested heavily in Ecuador.

This is also why I have borrowed US dollars and invested the loan into Mexican pesos and Brazilian real. Learn about this tactic in my report Borrow Low Deposit High.

For example at our June Quantum Wealth course we looked at how the position I took with a$100,000 investment matched with a $100,000 US dollar loan at three percent returns 17% (before fees and forex gain or loss).

$200,000 Brazil bonds due 2016 that pays 10.00%
That’s $20,000 income per annum.
$100,000 dollar loan at 3% costs $3,000 per year

My return on the $100,000 invested is  $17,000 or 17% per annum.

Another one of my borrow low positions is an investment of

$100,000 Mexican government binds due Due 2024 that pays 8%
$100,000 AAA European Investment Bank Australian dollar 2013 bond that pays 5.56%
$100,000 AAA rated European Investment Bank New Zealand dollar 2014 bond that pays  5.38%

My average income on the three bonds is 6.31%  or  $18,930 a year.
My loan cost  on the $300,000 loan is $9,000.

My return on the $300,000 loan is $9,930.

New global bank regulations mean that it requires increasingly larger amounts to make this kind of investment… especially for Americans.  However new forex managed portfolios allow small investors to take advantage of this type of tactic.

For more details Americans should contact Thomas Fischer at Jyske Global Asset Management  fischer@jgam.com

Non US investors contact Rene Mathys at Jyske Private Bank mathys@jbpb.dk

Gary

emerging-markets

Merri and I hike the harbor every day when we are in Copenhagen.  We love…

investment-course

the sights, the…

investment-course

cafes and…

investment-course

open air and…

investment-course

waterfront dining.  Summer is the best time to visit Copenhagen.

Peter Berezin, Managing Editor of Bank Credit Analyst Researech (BCA) will be one of the speakers at the August Jyske Bnak’s Global Wealth Management Seminar, August 25 to 29, 2010 in Copenhagen.

I love attending these Jyske seminars not just as a speaker but because I get to hear all the other speakers, whom I consider world class.

One speaker who may provide some special emerging market insights is James Ellert, Professor of Finance and  Strategy, International Institute for Management Development, a global business school in Switzerland.  This school offers and MBA program for corporations,firms, institutions, and private and business clients worldwide.  This elite school located on the shores of Lake Geneva in Lausanne, Switzerland offers pioneering solutions that encourages open attitudes and provides relevant, innovative and rigorous research for a unique real world, real learning approach to apply new insights. The school  challenges boundaries for redefining ambitions and realizing performance breakthroughs.  This is one of the world’s top ranked business schools and the ideas from Professor Ellert can help understand emerging opportunities.

Other speakers include will be Bjorn Lomborg known as the “Skeptical Environmentalist.”  See more on Lomborg here.

Another speaker will be Jeff Rubin. Rubin was the Chief Economist for CIBC, a North American investment bank for 20 years. See more about Rubin here.

Kenneth Rogoff  the Thomas D. Cabot Professor of Public Policy and Professor of Economics at Harvard University and former Chief Economist for the International Monetary Fund is also a speaker. See more at Rogoff.

Another speaker is Daniel Brehon, the foreign exchange strategist, for Deutsche Bank AG.  See more about Daniel Brehon and Deutche Bank here.

Another speaker is Peter Berezin, Managing Editor Bank Credit Analyst Research.

The strong US dollar makes this the year to enjoy Europe and Thomas Fischer at Jyske just sent me this note: Gary due to the increasing US dollar, the cost for our August seminar in Copenhagen for Americans has dropped from about $2,050 to $1,700, a 15% discount. (THE COST INCLUDES MOST OF THE FOOD, TRIPS, MAKING THE CONFERENCE A GREAT BARGAIN.)

Some great things about the Copenhagen conference are the seminar of course…then there’s the stunning food and the wonderful visits included…This package includes:  accommodation at the Copenhagen Marriott Hotel for four nights, (25-28 August) including breakfast,  Reception and dinner at the bank’s Copenhagen offices, seminar fee and materials for the seminar sessions on Thursday, Friday and Saturday. full lunches on Thursday, Friday and Saturday, canal & harbour tour on Friday in the late afternoon, four-course gala dinner with entertainment and dancing on Saturday evening, and a Sunday excursion including lunch.

Merri and I always go on the excursion also to Silkebord with a drive out into the country, lovely food, picnic cruise and a chance to see the main office and the trading center.  This is always our most interesting, favorite and delightful conference…and we hope you will join us there!  We love the stroll along the harbor, the fresh air, wonderful meals and interesting people from all over the world.

See details on how to join Merri and me at Jyske’s bi annual Copenhagen seminar here Global Wealth Management Seminar.

emerging-markets

We also really enjoy the restaurants and coffee shops along Nyhavn.

How We Can Serve You

How to Have Real Safety

Regain Real Security

There is a path to true security.

I was reminded of this once when I made a horrible mistake.  Almost!

The supposed error?  Letting my mind wander six decades back to an hour I spent with a girl.

Learn from this near disaster, seven most powerful sources of wealth, health, security and fulfillment in this era.

The girl was pretty and blond.  Terry was her name. My imagination spanned decades returning to my Oregon roots seeing her as if she were there.

We were 11 or 12 and had known each other since we started Rockwood grade school.  Just buddies, our non-romantic friendship lasted 12 years, from first grade till high school’s end.  Then she went off to Pepperdine College in California.  I started traveling the world.  Never saw her again.  I hope her life has gone well.  But until that reflection I’d never thought much of Terry in so many years.

What could have been the tragic error was letting that memory touch my heart.  Two kids, walking on a crisp, Pacific Northwest autumnal afternoon.

We walked down a sun filled, pine needle covered, dirt path.  Huge, fat, green Douglas firs lined the road.  Traffic was no problem, not many cars.  Crossing Stark Street we turned left, hiking three blocks to 182nd.  There we passed an old clapboard candy store.  I can still hear the wooden sidewalk of that store slap beneath my feet, felt the soggy planks sag and smelled astringent pitch from the fir trees.  Then we turned right, up 182nd for about a mile.  There was Terry’s house.

I carried on, walking through a big field, waist high grass turned straw brown by an early frost.  There were dozens of paths made by who knows what.  Animals perhaps or countless generations of other kids walking home alone from school.  I chose one following it to another wood of tall, rough-barked fir.  Crossing one more field, I climbed a rock wall, struggled through a barbed wire fence (my Mom hated that fence ripping my jeans).  I was home!

Sweet simplicity, that dream.  Two kids holding hands, walking on a dirt trail under a crisp, but blue, sunny sky.  Pure innocence.

My tragic error was looking back.  I returned to Rockwood, Oregon with Merri and my kids to show them this part of their roots.  Following the route, Terry and I had walked were the candy store, grange hall, old wooden buildings and their home spun honesty and charm.

Instead we found six lanes of fast, frantic traffic and road rage.  McDonalds, KFC, strip shopping centers.  The car radio blared warnings of local gangs and drive-by-shootings. Beauty, innocence, sweet simplicity, replaced by drive ins and drive bys.  Gangs and drive-by shootings replacing a tender walk in the sun.  Good bye memories, good bye.

How can our kids walk in places like this?  How can we return to those old feeling of security and comfort?

How can any of us possibly keep pace in this world that’s moving so fast?  Then something inside snapped. “There has to be an answer for honest, hard working folks to enjoy the wonderful opportunities of today and regain what we’ve lost over the past forty years”, I swore to myself.

How can we keep up, without having such a fast paced life we turn into machines?  Where do we find time for God, family, charity, and our friends?  How can we rediscover those sun filled, pine needle covered, dirt paths we want to walk?

“There has to be places that are still innocent and pure”, I thought.  “There has to be a way of life that does not pound us with stress”.

This thinking led me to begin reviewing the thousands of economic and business experiences I have shared with readers over the decades.  This started a search for a simpler way of life and a better place to earn and protect our wealth.

By digging, asking and observing, traveling and talking to investors and investment managers all over the world I found that there are true paths to real security in the here and now.  That knowledge helped me develop courses on how to have natural health, everlasting wealth and purposeful investments.

This knowledge helped Merri and me invest in stocks and real estate all over the world.  It helped us find and develop Merrily Farms into a sanctuary here on Little Horse Creek.

That almost error led us to create an entire portfolio of information on how to keep pace, get ahead, enjoy our modern society but, to enjoy life wherever you choose without having to move too fast.

This is why I am making a special three day “Let’s get our lives back offer”.

“What would you think in the last 30 seconds of your life if you were the richest man in the world but were unhappy?”

This quote is from the opening slide of our Value Investing Seminar, “How to Secure Your Future With a Value Breakout Plan”.   This a vital question because few investors think about the value of comfort and happiness.  Yet the truth is, those who are comfortable and happy with their investments are most likely to make good investment, business and lifestyle decisions.

Without comfort, no matter how much money a person has changes are, they’ll eventually lose it or kill themselves with stress from worry.

There is a way to have the perfect form of financial security.  Let’s call it the perfect pension.  To help understand how to build an unshakable economic platform, here is Part One of the report, The Pruppie Factor.

The Pruppie Factor – Seven Steps to Comfortable Living & Profits.

“May you live in interesting times”.  That’s a Chinese curse that seems to have been cast on our modern world.  We can enjoy comfort and profits in the year ahead despite this fact.

Become a Pruppie.  Integrate your earning with your investing and enjoy peak living, everlasting wealth and natural health with PIEC Investing in the year ahead.

Before we look at what PIEC means, let’s delve into Pruppieism, the new economic and social realism.  Pruppies expect everything to expand.  They take advantage of every new benefit and technology they can.  Pruppies enjoy using the fruits of our ancestor’s deliberations and labors to earn in this advanced technological world.  They also engage in activity that they love that would sustain them in case society and the incredibly intricate weave of our global economy and society should fail.

Pruppies are prepared in case everything, everywhere, or at least everything relating to their income and savings fails and the fabric that surrounds their lives disintegrates into an unknown veil.  Yet a Pruppie’s preparation is not a sacrifice, but a joy as you will see.

Hope springs eternal and it should.  One of the key themes in my first book, Passport to International Profit, (published in the 1970s) was “The Sun Always Shines Somewhere”.  This thought has been in and remains a foundation of everything I do.

Sometimes this sunshine is hard to see because the press always focuses on doom and gloom.  Current news often makes the world seem about to end.  We cannot blame the press. Bad news sells.  The majority seem to want to worry instead of learn about all that’s good.  This does not make doom and gloom right.  This is why the majority are also the rich portion of the population, but bad news is an economic fact for the press.

Yet despite all the negative headlines, we have lived through the Cold War and MAD, Y2K, GridX II, the Peak Oil Crisis, the recession of the 1970s, 1980s 2007, etc. etc. etc.  Chicken Little is always out there, selling the falling sky.  Don’t buy into this story!

History suggests that there will always be opportunity.  The sun always shines somewhere.

Brexit, global warming and the election of Donald trump as President of the United States are 2016 examples of how the press gravitates to negative news.  These three events may be bad news or not.  The future will tell, but they are examples of how the media focuses on tiny parts of our infinite existence.  They can make anything and just about everything seem negative.  This can blind us to the positive realities ahead, if we let it.  Don’t.  Expect that the world will remain standing and look for opportunity instead!

Our wealth and economic opportunity is pushed by supply and demand.  We are part of a growing global population.  New technology makes more people, as a whole, more productive every day.  The world has increasingly larger markets creating more supply in increasingly efficient ways.

This reality increases everyone’s wealth.  Yes there is a lot of bad news in many places.  There is inequality.  There is crime.  There is war and hate and injustice.   Despite these negatives there is even more that is positive.  Opportunity grows.

Pruppies tap into and use every bit of the good news they can.  They have a plan B if everything goes wrong, but Plan B is based on something a Pruppie wants to do we love, not just a shelter from bad news.

At the end of this report, you’ll find three day special offer that can help you integrate earning and investing for the ultimate form of profit and safety.

Imagine this example of Pruppism.  The Tiffany lamp casts an amber glow, rich, ivory and warm in the grey gloom of early dusk.  The gold knobbed mahogany desk, its deep patina waxed and smooth, shines with reflections of ancient leather Chesterfields stuffed full, but rumpled with age and of maritime shots that hang in brass frames on the wall. The room speaks of settled tradition, the kind that might never end.  But thoughts instead are on the demise of the business that has supported this room.

The late Jim Slater of Slater Walker, a British industrial conglomerate turned bank in the 1970s was in that room.  I recall his bank’s collapse well as I was living in Hong Kong and Slater Walker was a huge going concern in what was a British colony in those days.  The Slater Walker crash was big news that unsettled the entire British banking system at the time.

Slater, the founder, had been a really high roller, using every modern banking tactic available including buying many assets with cheap loans.  Then in the mid 1970s banking crisis interest rates skyrocketed and his bank was unable to refinance its debt.  The company failed and Slater had to resign.  Numerous charges were brought against him and he spent considerable time defending what he had done.

In the end he was only fined a nominal sum but despite this, his banking career was well and truly dead.

However he had already moved on.

He wrote about this in his autobiography, “Return To Go”.  He had always had a hobby making puppet shows and telling stories to his children, so instead of banking, he turned his passion into profit and wrote some children’s books.  His first effort sold a respectable 35,000 copies.  His next a monster series for younger children, became a huge hit.

He had also maintained a hobby of salmon fishing so again turned his passion into profit by creating a business that bought up fishing rights and resold them as time-shares.  He had quite a success.

Some day a catastrophe beyond our control could redirect the course of our lives.  We might lose a job, learn that our pension won’t pay or that our dollars won’t buy as much as they must.

Though Jim Slater was a banker, outside economic forces beyond his control caused his business disaster.  Yet he had options because he had been doing things he loved that were not related to his banking, but could become useful income generators in difficult time.

I do not know if Slater understood Pruppism but that’s what he was practicing.

Pruppism is a positive realism based on the knowledge that much of our lives are directed by events that we do not know or expect and could not change them even if we did.  There is always something we do not know and that’s okay.

Years ago I was speaking at an investing seminar in Marbella Spain.  One of the speakers was a brilliant strategist, Johan Peter Paludan, of the Copenhagen Institute for Futures Studies.  This institute has a large interdisciplinary staff with expertise in economics, political science, ethnography, psychology, engineering, PR and sociology.  They identify and analyze global trends that influence the future.  Paludan was speaking of these trends and answering questions that delegates had about the world’s economic future.

One delegate asked what to do if there was a global nuclear exchange.  Paludan replied that the results of some events are so unpredictable that it is not worth trying to plan for them.

This thought has stuck with me for decades because it helped me realize that no matter how cautious, how defensive and careful we are, there are events that we cannot even imagine that can turn our lives upside down, for the good or bad.  With this in mind my wife Merri and I have created a lifestyle where we turn our passions into profit but in a way that whatever happens we are likely to be in a position to spot the positive and the opportunity.

A PIEC Experience

Pruppies gain the benefits of PIEC wealth.  PIEC is an acronym for “Personal Income Earning Corridor”.  PIEC income and wealth come from doing what you do for love, rather than just the money.

Traditionally people get jobs to create income.  They work to live and support their lifestyle while attempting to spend less than they earn.  They hope, that maybe the savings will bring, sometime in the future, a lifestyle of doing something enjoyable without work.

Pruppies reverse the priorities.  Instead of working for money to save and invest, they focus their prime effort on doing something they enjoy right now.  Then they learn how to enjoy the effort in some profitable way.  They learn to create “Avenues of Abundance” that combine lifestyle with the necessary task of accumulating wealth.

If economic circumstances tie them to an existing income effort, they create hobbies that are income producers of the future.

For example, if a Pruppie loves golf; instead of working six days a week, 50 weeks a year just to golf on Sundays and during short vacations, instead he or she will create a business in some aspect of the golfing trade.

In another example, a client of mine, who loved animals became a vet.  But he learned that the vet’s lifestyle was not one he enjoyed.  He wanted to travel and move around, which is difficult for a professional who needs to stay at his office and build a practice.  So he built a business that prepares special animal foods for race horses.  Now he travels globally visiting horse breeders and makes much more money as well.

Pruppies combine money with time, energy and desires.  They generate income doing something desired.  Desire and fulfillment become at least as, if not more, important as the money.

#1: Do What You Love!

The reason PIECs work well is that when we love to do something, we do it better, for longer and with greater enthusiasm.

Effort, determination and tenacity are wealth building attributes that cannot fail.  Yet Pruppism does not mean we should suddenly abandon our jobs and try becoming golf pros, when we have never been able to break 100.  Smart Pruppies start small and gradually expand into their passion.

For example, as a writer and lecturer, I was never fully satisfied sitting behind a desk or standing on a podium all day long, even though I was making over a million bucks a year. I’m the physical, outdoors type and yearned for exercise and the wilds of the deep woods. “What good’s the money if this isn’t fun?” I often asked myself.

Rather than quit writing and teaching, I looked for ways to combine these professions with the outdoor life.  Through research I learned that many city folk like myself yearn to be in the primitive outdoors.  So I bought an isolated farm high in the Blue Ridge Mountains and an Andean plantation high in Ecuador where I developed seminar centers with charming but simple dwellings, set in rustic surroundings, with clean water and pure air.  Now I live in nature so after I finish the writing or talking, I can walk in the woods or take my axe and chop firewood or something physical.  I’ve combined my writing with physical work and have blended the life I want, with my readers’ needs in a way that makes great financial sense.

We built a series of cabins in the wild that bring more profits than most stocks or bonds could ever return.

The process took six years to shift. Now we have been at this for nearly two decades and we are far from finished.  But while doing what we love, who cares? This is one of the great benefits of PIEC investing. We can slow down and enjoy the work instead of always rushing ahead, looking for something more.

Those who work nine to five can start PIEC businesses part time if they are too uneasy to quit their jobs. Others, who like myself, already have a business can slowly shift their product or service in a sensible way and let it evolve toward their PIEC.

But where do we start?

There is a seven step process we can all use whether we have our own careers, a business or even if we are retired (PIEC investing is especially good for retired folks who have found the supposed good life flat or financially short).

The first step is to get a clear idea or vision of our dream.  This is sometimes harder to achieve than it seems.  We are so deluged with false ideals from Washington, Wall Street, Madison Avenue, etc. that we have to stop and really take stock.  What do we sincerely want?

There is a very practical economic reason to look inwards for wealth.  Warren Buffet recommends that we only invest in what we understand. What can we understand better than ourselves?

This inner search will lead us to an ideal that begins the second step which is gaining enthusiasm.  How can we be anything but enthusiastic about finally fulfilling our deepest dreams?  The enthusiasm leads to the third step; gaining an education.

We need to find out everything we can about our idea.  To succeed we must take the third step and become real experts in the product or service we offer.

Fourth, this educational process allows us to develop an intelligent, focused business plan we can act upon and the action is the fifth step which brings us the experience. Experience gives us the sixth step, a financial loss or profit.  We always profit in increased knowledge which creates the seventh step, more ideas.

Then the entire cycle starts all over again: Idea, Enthusiasm, Education, Action, Experience, Financial Profit and New Ideas.

This is a way to keep adding new opportunities into our lives.  Business is rarely static. It is an ever evolving process instead.

This seven step cycle may take days, weeks, months or years, but the moment you begin you’ll start moving into an avenue of affluence where you love your work so though money isn’t your main goal it comes more easily.

#2: Do what you love, but also be of service.  Do something for others that is meaningful and important to you.

We all have a purpose in life and when we are filling it, we feel fulfilled.  Wealth and fulfillment is the goal.  Fulfillment is important because of the law of diminishing returns.  A 2008 study that analyzed Gallup surveys of 450,000 Americans suggested that day-to-day contentment improves until income hits around $75,000 per annum.  After that, more money just brings more stuff, with far less gain in happiness.  Income beyond $75,000 does not do much for a person’s daily mood.

This is a pretty general study and regional differences in costs, inflation and life circumstances will create many fluctuations from this norm, but the point is when money is the main goal, the better you get, the harder it will be to gain satisfaction.

Giving, on the other hand, never has limitations, especially when the giving helps complete a purpose that is part of our destiny.

This is true in business and investing.  A study of investors for example found that investors with socially responsible ideals gained the best returns.  A dual goal of profit and achieving some social benefit provides a purpose beyond returns.  This brings comfort and determination to the investments and the added stick-to-it-ness helps increase profits.

The financial giant State Street Corporation’s Center for Applied Research did an 18 month study of 7,000 investors to get a better understanding of the role incentives play in making investment decisions.  Based on this study a new measure of investment performance called “Phi” was created.  Portfolios were previous rated by their Alpha, Beta, and Gamma. Phi is the newest measure of performance.

Alpha measures an investment’s performance against a market index.  If the Standard & Poor’s 500-stock index is up 10 percent and a mutual fund is up 15 percent, for example, that 5 percentage point difference is alpha.

Beta is the return of any given market.  And charting beta is what a passive index fund does.  Comparing different indexes’ beta — say domestic equities and international bonds — helps investors in deciding how to allocate their investments.

Gamma is a measure of the impact on returns of more intelligent financial planning decisions.  A Gamma rating quantifies the additional value that can be achieved by optimal asset allocation, a dynamic withdrawal strategy, incorporating guaranteed income products (i.e., annuities), tax-efficient decisions, and liability-relative asset allocation optimization.

What phi aims to add is a way for investors to quantify how their motivations — or those of the people managing their money — will affect long-term investment returns.

The study examined what motivates a person to invest — or not and found that main investment motivations are market-based motives, the most frequent and powerful being fear in the market.  Both market motivations, the prospect of profit and the fear of loss, can have a negative effect on long-term performance.

A deep sense of purpose is what causes a high phi score.  A high phi factor is not about outperforming markets or peers, and it’s not an asset-gathering measure of performance.  Pi performance is defined as sustainable investing with a deeper sense of purpose.

People who invested with socially responsible ideals did best in the study.  The dual goal of profit and achieving some social benefit provides a purpose beyond returns.  This brings comfort and determination to the investments.

The study helped define three aspects of investing that are generally ignored, purpose, habits and incentives.

Purpose.  Purpose requires some soul-searching questions about what we each want our life to be.  This purpose is more important than the investment goal.  The purpose of the money we have becomes more important than the amount in the portfolio.

Habits.  Habits come next because we need to create habits and routines that keep us on the path of our unique purpose.  The marketplace does all it can to distract us from our goals.  There is an endless stream of news, rumor, conjecture, facts figures, ideas and tactics generated by every part of every stock market aimed at getting us to act in ways that benefit the agenda of others.

Habits help us avoid being distracted from what we are meant and want to do.  The muffle the noise of Madison Avenue, the spin from Washington DC and the hidden agendas of big business.

Incentive.  Changing incentives to accomplish a purpose instead of a numerical (percentage or profit) goal helps us adopt better behavior.  We react to accomplishing our meaningful purpose instead of drama created by media as well as manipulation and short term whims in markets.

The study showed that changing incentives in this way improved phi when they had a meaningful impact on a person’s investment strategy.

The study found these facts: Every one-point increase in people’s orientation toward investment goals with a purpose — and the scale is 0 to 3 — equated to 42 percent greater odds that the investors know what they are paying in fees, 37 percent greater odds that investors are not rejecting their financial adviser, 38 percent greater odds that the people consider investing in socially responsible investments and 79 percent greater odds that investors will trade less frequently, the research found.

As in so many others cases, two of the most important factors of success are keeping costs and trading activity low.  These are among the most powerful ways to increase wealth.  Having greater fulfillment as well as more wealth is a bonus that Pruppies call “Everlasting Wealth”.

Figure out what is really important in life for you and then find ways to invest in that purpose.  When you do, you’ll be on a solid path to everlasting wealth that is not so easily diverted by the daily drama that seems to be unfolding in the modern world.

Learn to focus your investments using purpose as the most important investment goal.  The purpose of money becomes more important than the amount.

Learn how to create habits and routines that keep us on the path of our unique purpose.  The market will do all it can to distract us from our goals.  Understand that many banks, brokers, the media, the government and commerce all have agendas to take our money, not make more for us.   Good wealth habits and routines protect us from this.

#3: Integrate your earning and investing. 

Long term success in business and investing are determined by control and comfort.

Comfort comes from feeling in control, but since there is always something we do not know, real comfort comes from knowing that we are serving a valuable purpose, the best we can, regardless of how events unfold.

Real comfort helps maintain determination, dedication and enthusiasm, all among the most vital parts in the process of succeeding in investing and business.

Our own business increases comfort because a business is simply an investment that gives us more control due to the addition of our own time and energy. 

A Personal Income Earning Corridor (PIEC) begin with a main income generator that we control.  For some this is a job with a salary.  For others it is a pension. For many it is their own business.

Integration of business and investing is important because investments are not always good income generators.

Years ago I managed an investment portfolio for Canada’s largest private investment management firm.  One day, during lunch with the president of the firm, we discussed the difficulties of professional fund management.  He explained that one of his biggest problems was the excessive expectation of customers.

“I have a retired client who has a million dollars”, he said.  “The client wants $90,000 a year to live on.  In a good year, we might earn 11%.  The client can take 9%. Our fee is 1% and the client’s fund increase by 1%.  In a bad year, we might earn 5%. The client takes 9%.  Our fee is 1% and the client’s funds drop by $50,000.  In the next year the client has even less to work with so a withdrawal of $90,000 may be more than 9% of the portfolio.  The client tends to take even more in good years, but never reduces the demand in bad years.”

The number one golden rule of investing is that there is always something we do not know.  Risk is always our partner.  When we invest, there is always potential that will negatively affect our financial welfare.  Our investments might rise or fall because of market conditions (market risk).  Corporate decisions, such as whether to expand into a new area of business or merge with another company, can affect the value of our investments (business risk).  If we own an international investment, events within that country can affect our investment.  There is both political and currency risk.  There is liquidity risk because we may need to draw on an investment at a time when it price is low.

Plus there are broken promises.

We live in an era of broken promises.  Defaults could ruin most average retirees and even investors.

A look at government, social and currency breakdown at its worst can help us see the problem.  Germany is an example when it borrowed heavily to pay WWI costs.  Such borrowing almost always leads to currency and social erosion and this did then.  Right after the war there was some stability, before government spending began to run wild.  By 1923, it reached the worst in history.  This caused prices to sometimes double in hours. In Germany by late 1923 it took 200 billion marks to buy a loaf of bread.

Hard-working people with modest spending habits could not even buy a postage stamp with their life savings.  All debt was wiped out but so too were all savings.

Salaries were paid three times a day yet shops were empty.  Food riots raged. Businesses closed down, unemployment soared.  The economy collapsed.

Anyone on a fixed income was destitute.  They sold everything just to buy food.

Small businesses however survived because they could hold material things such as clothing, food, anything people could consume. 

Recent news about Social Security, pensions and health care shows that the US government has excessive debt today and that we as individuals need tactics to make sure, when governments, pensions and insurers weasel out of their promises, that we can take care of ourselves.

One big broken promise is Social Security and Medicare.  The most recent Social Security trustee report shows that the programs will begin to spend more than they earn within just three or four years.   The Medicare hospital-insurance trust fund, could use all its reserves by 2028.  They face insolvency over the next 20 years because Social Security runs totally out of money by 2034.

This is a bigger problem then it may seem because it creates an even bigger broken promise concerning the US dollar.

Medicare and Social Security already account for 41% of federal spending.  That was the expenditure last year.  This is not a static problem.  Each year that percentage is growing worse.  This creates a special risk for the dollar because Social Security’s reserves are not really assets at all.  The purported assets are simply IOUs from the US government.

Social Security assets are a liability of the government, so eventually the money comes from the same place as all other government expenditure, taxes or federal debt.  This means that if Social Security has to sell an asset, then the government, already overburdened by debt, will have to borrow the money from somewhere else.

If the Fed cannot raise enough money to pay Social Security only two options are left, devalue the greenback or don’t pay.

When Social Security was established in 1935, the President and Congress imposed taxes to pay the promised benefits. Thirty years later politics had changed.  When Medicare was established in 1965, the government took credit for the popular health coverage but left the payment problem for future generations.

President Nixon and Congress also enjoyed the popularity of they increased Social Security benefits  in the 1970s but left future generations the bill.

The public has not been fooled.  A survey in 1964 found that 77% of the population answered yes to the question “Do you trust the government to do the right thing “just about always” or “most of the time”.  Only 19% answered yes in 2015 according to Pew Research.

Yet what can individuals do other than what we have, voting in new administrations?

Voters attempted to create change in 2008 with a new administration.  The election process and result of 2016 suggests they were no pleased with the results. 2017 and beyond may be “interesting” years.

There should be little wonder that Americans have stopped trusting politicians who promise benefits to get and remain elected but leave the burdens of paying for the promises to pile up waiting to sink the next administration.

This problem has grown so large that in 2011 Federal Reserve Chairman Ben Bernanke “maintaining the status quo is not an option. Creditors will not lend to a government whose debt, relative to national income, is rising without limit.”

In 2014 Federal Reserve Chair Janet Yellen told Congress that more work must be done “to put fiscal policy on a sustainable course.”

If the government does not resolve this problem soon, then the world of lenders will.  If the US has to raise interest rates to continue attracting loans, a downward spiral will grow.  Higher rates create greater debt and greater debt demands higher interest payments. The costs will be catastrophic.  As investors flee US bonds and T-Bills for safer investment, the US dollar will lose purchasing power.

Social Security, if paid and even if paid in the same amounts as before, will buy less.  If Medicare stops working then all that’s left for backup is Obamacare and the private insurers in the plan.

This is another broken promise.  When United Health Group, the nation’s largest health insurer, recently announced that it was pulling out of Obamacare insurance the public learned that it will face higher premiums.  Many will need to choose a new plan, change doctors and hospitals as well.  United Health is not the first or only insurer to quit. A dozen nonprofit health insurance cooperatives shut down just last year.  The giants Aetna and Blue Cross Blue Shield are even considering a drop out.

If Social Security and health care promises are broken that just leaves our pensions. Right?

Yet if we look at the Pensionrights.org website we see hundreds of corporations that have reduced pension benefits including the likes of Honda Motor Co., Ltd., Allstate Corp., Coca Cola, Boeing, Caterpillar, Kraft Foods, Hewlett Packard, Fedex GM and GE to name a few of over a hundred.

This problem is not limited to corporate pension.  An Economic Budget Issue Brief issued to Congress from the CBO (Congressional Budget office”) says:

“By any measure, nearly all state and local pension plans are underfunded, which means that the value of the plans’ assets is less than their accrued pension liabilities for current workers and retirees” CBO.

The report shows that even five years ago the short fall of State and Local Pensions was over 3 trillion dollars, more than all other state and local debt

That leaves the Pension Benefit Guaranty Corporation (PBGC) as a safety net.  In the 2015 PBGC’s annual report the Director’s message says:  “One of the most important functions of PBGC is assuming responsibility for pension plans when their sponsors can no longer keep them going.  We insure the benefits of more than 40 million workers and retirees.  Currently, we pay more than 800,000 people each month.  An additional 585,000 workers are scheduled to receive benefits from PBGC when they retire.”

But if you look at the first paragraph of the Financial Report in that annual report you see:

“PBGC’s combined financial position decreased by $14,577 million, increasing the Corporation’s combined deficit (net position) to $76,349 million as of September 30, 2015 an all time record high from  $61,772 million as of September 30, 2014”.

Every step along the way we see shortfalls, debt with little hope of repayment and an economic overhang that will eventually create broken promises at every level from the pensions, healthcare, Social Security and most from a falling US dollar.

These facts will ruin the life styles of millions, but not all.

In short, there is risk in even the safest investments and there is a possibility that a negative financial outcome might occur.

This is why multi dimensional business opportunities make sense.  You can profit from expanding your utility.  The US currency may fall but your business can offer valuable, needed services or products that will be worth more than gold.

You can gain from having a source of income in a place where you have the best chances of control.  This is why for centuries… small business have had a home upstairs and business below, so the owner could control their business.

Those who profit most in changing times are those who add new dimensions to old time proven ways.  Modern technology offers many exciting ways to create multi dimensional profit and can earn income at home.

When you have your own business, you reduce the need to place excessive demands on your savings and you reduce the risks of broken promises especially when your have a multi dimensional business with multiple streams of income.

At the end of this report, you’ll find three day special offer that can help you integrate multiple streams of income and investing for the ultimate form of profit and safety.

Merri and I aim to create multi dimensional opportunity wherever we live.

In Florida we bought a house and an orange grove next door.  Then we added a rental unit.

In North Carolina we bought a farm, then we added a seminar center, rental units and a trout raising business.

Products and services of essentials, food, clothing, shelter, protection and good health are the real golden assets in the worst times.

Imagine the scenario where our entire structure melts down.  “See the man who has just come in to get some milk for his family.  He stares at the rows for canned milk.  They were empty. Cleaned out.  He closes his eyes.  The world spins.  He snaps his eyes open and checked the rows again.  They are still empty.  He feels oddly betrayed.  Grocery stores are the supports of life.  When you need something you come here.  This is a fact of life in today’s world.  How can he not take this for granted.

“He rushes to the dairy case.  That’s empty too.  He runs to other shelves and sees shoppers piling up food, any food they can grab, throwing entire rows into their carts.  He is pushed and shoved in a mad rush to take any remaining food.

“The man speeds off to the nearest Dollar Store but finds the parking lot filled, lines waiting just to get in the door.”

Just one disruption in the supply line and in a day, the stores were empty. Our modern world is so intricately connected and stores operate on a just-in-time inventory control system.  When you buy anything a computer orders more and it comes next shipment, next day. One glitch in this complex system, one short break and the shelves rapidly go empty.  The barer the shelves, the faster everything goes.

Yesterday everything had been normal. Suddenly there was no milk anywhere.

The man’s tale is imaginary, but the fabric behind it is not, as the real story below shows.

In September and November of 2016, the Colonial pipeline that supplies millions of people with gasoline was shut down.

In November, one simple error caused the disruption.  A track hoe digging for utilities accidentally struck the pipeline, ignited gasoline and caused an explosion.

In September there was a leak (over a quarter million gallons of gas) that caused the disruption.  While shut down, so many people rushed to the gas station to fill up that it created a panic and shortage.

I spoke with the owner of the local gas station we use. He said people were lining up to fill their cars, gas cans and even large tanks in pickups.  He had to limit sales.

A shortage of just about any essential quickly creates panic.  In the pipeline disruptions motorists running to gas stations deviated from their normal consumption habits at the pump and quickly exhausted existing supplies.

There was still plenty of gasoline, but the ability to transport the product to North Carolina (and four other states) was restricted.  Loss of common sense, civility and safety flew out the window within hours.

This was despite the good news that there are two pipes that run side-by-side.  Only one was ruptured, so the disruption was not as bad as it could be.

The September leak, just one small problem in just one pipeline led to days of dry pumps and higher gas prices in Alabama, Georgia, Tennessee and the Carolinas while repairs were made.

Five states are so dependent on just two side by side  pipelines that their shutdown can create panic for millions of people in under one day.

Merri and I make each of our houses multi dimensional…a home and a source of income from some essential product.

Governments are going further into debt globally.  This creates serious debt and economic problems everywhere.  These burdens mean that governments and societies lose their ability to keep their promises.  Multi dimensional earnings can help overcome the risks these conditions create.

Our website has long shared the idea of multi dimensional business, investing and living.  We have looked at the idea of living as a landlord or the idea of multi dimensional writing and farming or Ecuador farming with B&B, plus Ecuador B&Bs on the beach or in the Amazon to name a few.

Multi dimensional opportunity earns in numerous ways.

Merri and I have always created multi dimensional opportunity in our global travels.  We have united self publishing, seminars, tours, real estate, teaching, currencies, investing and real estate to enhance our income and living.  For example in London we converted a house into an office and bedroom time share. We found special currency deals that helped.

I came across this (one of my first) multi dimensional opportunities when I wanted to finance a house purchase in London.  My business plan was to create a small office-apartment complex.  I would live in part of the house, have an office in part that I would share with a number of my readers.  The deal was aimed at helping overseas businesses people have an office and a place to stay when they were in London.  I set up a club something like a timeshare.  Not quite a timeshare but close enough.

My track record with the bank was good and I had always repaid loans.  Yet the policy at that bank was “timeshares are no-nos”.  I could almost see the glaze come over my bank manager’s eyes as I explained the project.  It was the look that said “No matter what you say, the answer will be NO”.  Once a manager thinks that what you want is against company policy, it is better to do something realistic like climb Mount Everest on a lunch break.  I come from a family of modest means and had no relatives or friends with the cash to start the deal so my alternative was to find overseas investors.

After making the necessary polite motions with my banker and letting him do likewise, I thanked him for his time and was preparing to leave.

Then he said, “By the way let me show you our new American Express Gold Card plan”.  The bank had just started to offer credit cards and they came with a 7,500 pound unsecured overdraft.  He told me that overseas investors could have these as well as local investors and customers.

Overdrafts are a peculiarly British line of credit that allows you to borrow up to the limit of the overdraft without any regular payment plan.  The banker sort of expects to see the amount borrowed rise and fall.  The borrower just pays interest on whatever amount is owed and on occasion the bank reviews the overdraft with you.

At that time one pound equaled about 2.2 dollars so this meant that everyone who obtained this credit card received a $16,500 dollar unsecured line of credit. $15,000 was the amount I was charging each member who joined my London office-apartment club!  I immediately saw how to use this to attract overseas investors.

I wanted 50 members at $15,000 each which was double the $375,000 I needed to buy and develop the property. I saw how to turn my customers into my overseas investors.

My head was spinning as I left the bank.  The bank would not give me a $375,000 loan secured by property.  Yet they would lend my buyers of the club the full price of membership on an unsecured basis.  All I needed was get half my buyers right now on a nothing down pre -purchase deal.  This is exactly what I did.  My customers became my overseas investors.

I hustled out, called my customers and offered them this deal they could not refuse.  “Join our club now and you get an American Express gold card.  The bank will lend you the money unsecured for your club membership.  Pay it back when you can.” 

That was a deal that few overseas investors could refuse.

This was a much better deal for me than borrowing the money from overseas investors to start.  The original 25 sales were financed by the bank.  My customers had to pay the money back, not me.

My clients loved me for this deal.  The British pound collapsed shortly after.  That 7,500 loan that created over $15,000 became much less expensive…. barely $10,000.  Those who borrowed made about $5,000 (33%) forex profit on the loan as well as the good real estate deal.

They made such a profit on the currency change I wrote a report about it and earned additional income from the report sales.

In that real example, I used my writing to enhance a real estate deal.  The real estate helped me promote my seminars and sell a report plus I ended up with a income and a wonderful central London house to live in.

There are many multi dimensional real estate opportunities, land that offers a low stress, healthy home, farm income and other profit potential all at the same time.  Merri and I sponsored many Ecuador real estate tours to help readers buy multi dimensional real estate like Ecuador beach farms that provide rentals and farm income.

When investing and business are balanced the building of wealth becomes a more fulfilling, enjoyable process of service.  Great financial rewards are an extra benefit rather than ultimate goals.  Worries about money become less dominant and we gain an inherent power because we want to work harder and longer.  We don’t need to search (and spend) so much for fulfillment and are more likely to excel financially.

Three Layer Financial Plan

Having our own business allows us to operate at peak performance and create a PIEC (Personal Income Earning Corridor).  Having a PIEC business does not mean you should put all your money in just your own business (though at times you may).  Diversification is always good.

PIEC portfolios come in three layers, first the personal business, then a layer of very safe investments over a third, much smaller layer of speculative deals.

The majority of PIEC diversification beyond our business should be in stodgy, liquid investments such as utilities, CDs, bonds and good value equities.

I prefer Country Index ETFs that provide diversification into entire equity markets.  These investments might pay little in the short term, but are safe and they are highly liquid at a known price.  The low return on these investments is acceptable because they support your PIEC business which maximizes profits and adds comfort like few other investments can.

These very safe investments act as reserves if your business hits a sticky patch and can provide ready finance if sudden business opportunities arise.  They also don’t take up much time in research, accounting, watching the market, etc. so you can devote your energy doing what you love (your business).

However, if you genuinely love researching and tracking the market and have the mentality, capital and experience for it, just being an investor can be a wonderful PIEC business in itself.

The third layer of diversification can be speculative because modern portfolio theory suggests that safe investments are enhanced and made safer by adding a small amount of higher risk deals.  This also allows us to fulfill any casino mentality we might have left if having our own business is not enough.

PIEC investing makes it easier to create and keep wealth.  It enhances our lifestyles now, because it lets us make money being who we really are.  It makes life more fulfilling and fun.

Integrating investing and business reduces the risks of placing excessive demands on your savings, especially if we have an anchor of value.

#4: Find your Anchor of Value.

Find your passion.  Knowing ourselves also helps begin a business with a most powerful business tool I call the Golden Rule of Simplicity.  This rule says there are millions of people just like us.  When we truly see ourselves we look into a mirror that reflects an entire market who feel and desire just as we do.  This is a simple rule yet gives us a finely tuned market research system which shows us how to get create our product, get in touch with our market, deliver the product or service and surrounds us with like minded souls.

Self-knowledge is also essential for comfort and comfort is a vital part of everlasting wealth.  When investors are not comfortable, no profit is enough.  Uncomfortable investors have a never-ending thirst for more that cannot be quenched.  This indefatigable desire gums up the money making process.  Amounts don’t matter.  Even investors with incredible assets suffer this never-ending lust.  A well documented example is Bunker Hunt’s huge losses when he speculated in silver in the 1970s.  He had hundreds of millions yet speculated it all to make even more. When is hundreds of millions not enough?

Develop your investment rules.  Whatever your passion you will need to establish your method – the criteria you will use to select shares for your portfolio.

Whatever your preference you need to establish your key criteria.  Once you have your method working well, improvements come from experience and practice – learning from the successes and failures of each and every investment you make.  The quote “The harder I practice, the luckier I get” applies here.

Know when to sell – and when not to.  A key factor in effective portfolio management is to run profits and cut losses.  This is counter-intuitive for most people because it is natural to want to grab a profit and rather unpleasant to realize a loss.

If you run your profits they can become very big.  If you cut your losses they will always be relatively small.

To understand this approach better, let me ask a question.  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 of course we 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.

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.

Once upon a time, 1981 to be exact, there was a recession. An 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 hurting and the new government and president were turning on the money printing machine.

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

You often hear that the worst recession since the great depression was the great recession of 2007.  This is statistically wrong.  1982 was worse.

The times were dark and 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.

Our hero in the story thought the stock market would recover, despite the fact that everyone thought everything was bleak and black.  He approached his bankers and asked to make some leveraged investments in the stock market.

His goal was to make enough profit 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 manager 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 manager 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 manager called.  “You have made three million bucks… really 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 manager 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 manager called again.  “You have lost another million bucks… it’s 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 manager 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 moral of the story is that when you invest you need a plan, a discipline and to know when to holdem and when to foldem.

Remember that there are always three distinct options – buy, sell and hold.  We’ll look at how to decide when to buy, to sell and to hold later in this report.

Make sure you have some liquidity. You should always keep an eye on the “liquidity”, the ease with which you can sell all or part of your portfolio. If you are invested mainly in big cap stocks you will have little trouble going into cash if necessary.  However, if you have focused on smaller growth shares it makes sense to keep enough of your PIEC portfolio in large companies.

Select shares that can, if necessary, be turned into cash instantly and provide some comfort if the market as a whole turns ugly.

The potential gains on very large companies are not likely to be as high as those from smaller growth companies, but they can and often do well enough to give you a warm feeling.  Remember comfort counts!

Diversify – but not too much.  Your portfolio should contain no fewer than 10 shares, and you could put 10 percent of your money in each of your top selections.  Diversification is essential to reduce risk, but too much of it can hinder performance.

One of the best ways to have huge diversification in a small portfolio is with Country Index ETFs.  These ETFs are similar to an index mutual fund but are shares normally traded on a major stock exchange that tracks an index of shares in a specific country. ETFs do not try to beat the index they represent. The management is passive and tries to emulate the performance of the index.

Most country index ETFs are invested in dozens, often a hundred or more, shares.

For example, the iShares MSCI Australia (symbol EWA) is a Country Index ETF that tracks the investment results the Morgan Stanley Capital Index MSCI Australia Index which is composed mainly of large cap and small cap stocks traded primarily on the Australian Stock Exchange mainly of companies in consumer staples, financials and materials. With 72 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in Australia.

A portfolio of a dozen country index ETFs represents diversification to hundreds of shares and a dozen currencies.

Diversifying into countries is safe because countries  generally do not go away, go bankrupt or become challenged by changing technology and altering markets.

Diversifying into countries is also relatively simple because, there is sufficient analysis of global markets so every country’s stock market can be compared and markets of best value included in a safe portfolio.

In addition these valuations do not change quickly.  In 2016 our portfolio of 20 good value country index ETFs had only one change, an addition of the Turkey Index ETF, in the year.

This low volume turnover gives us time to put our focus and energy on our business and the passion we love most.  Studies over decades suggests that this simple slow trading, highly diversified approach increases long term profits and increases safety.

Country ETFs provide massive, good value diversification at a really low cost.

Most passive country index ETFs have minimal cost structures.

#5: Keep costs down. 

High trading costs are one of the biggest drags on the performance of your PIEC portfolio.

There are numerous costs we need to keep an eye on.

Load fees. Avoid back-end and ongoing load. When looking at mutual funds, we’ll typically see them listed as A shares, B shares, and C shares.  All of these share classes have some type of load.  Avoid them.

A shares include a front-end, a guaranteed loss the minute you buy.  B shares come with a back-end load, a guaranteed reduction of any profit or expansion of any loss.  B shares typically charge 5% if they are sold within a specified time (normally five to seven years). There are also higher ongoing operating expenses for B shares. Fund companies typically charge up to an extra 1 percent a year for B share operating expenses.

C shares charge a penalty (usually 1 percent) if a sale is made within the first year.  They also carry higher expense ratios.

12b-1 fees are fees hard to see internal fees that cover a fund’s marketing and distribution costs. Funds can 12b-1 fees to pay brokers incentives for selling their funds. We should watch 12b-1 fees to make sure our broker is advising this fund because it is a good investment, not because he or she is receiving an incentive.

Management fees. We should make sure we get what we pay for, a good manager who makes us feel comfortable by helping build safety and steady performance in our portfolio.

Churning. Some funds and brokers churn, or buy and sell more than is really required.  History suggests that the less activity in a portfolio, the higher the return. Active management is one thing, but funds and brokers can increase their income with excessive transactions that do little or nothing to help us as investors.

Misallocation. Many investors are misallocated for the benefit of the bank or broker.  There are a remarkable array of unnecessarily risky, undiversified portfolios created to generate fees, and that have nothing to do with a client needs. Beware of complex and expensive portfolios full of bits and pieces that are hard to understand. Low transparency can often be associated with high costs.

Expense ratios in fund doesn’t cover all of the costs.  All investors, whether using funds or not face other costs such as brokerage and bid-ask spreads.

Bid-ask spreads for example are subject to market friction.  Markets are liquid because makers standing ready to buy or sell shares at all times.  They are paid by the difference between what they will buy and or sell for.

Shares that have less liquidity, ie.  Not many buyers and sellers, have bigger spreads between buying and selling prices.

Investing in widely held index funds and index ETFs can reduce this cost gap.  Such investments normally trade within fractions of a cent, keeping this this hidden expense in check.

Trading commissions make active trading an expensive way to increase profits. Trading costs sandbag our profits from the start.

Taxes need to also be considered. Buying and selling quickly increases fees and also creates short-term capital gains taxes.

Be careful of margin account as well. Most brokers will let us borrow money (for a fee) so we can leverage our investments.  This increases any profits or losses created, but also adds the interest cost of the leverage.

If we add up all the potential fees, redemption fees, brokerage fees, back-end load fees, management fees, inactivity fees, 12b-1 fees, transfer fees, minimum equity requirement fees, commissions, the cost of limit orders and consultancy costs, before investing.

We should know what all our fees are.

Passive Funds Usually Cost Less. Because reducing costs is a major factor in investment success, low cost passive funds that do not require high cost managers generally out perform managed funds in the long run.

Over a 15 or 25 year period very few managers outperform the respective benchmarks of sectors where they invest by a couple of percentage points.

It’s an easy way to game the stock market, and getting easier by the day.

In Part Two of this report we’ll look at the more speculative end of our PIEC portfolio.

While we are sharing this report, I want to make a special offer, limited to the next three days, that can help you integrate your business and investing.

We offer two courses for attaining financial security.

The first is our “Live Well and Free Anywhere Program”.  The program contains  a series of courses and reports that show ways to earn and be free. These courses and reports are:

  • “International Business Made EZ” course
  • “Self Fulfilled – How to Write to Sell” course
  • Video Workshop by our webmaster David Cross,
  • The entire weekend “Writer’s Camp” in MP3,
  • The report “How to Raise Money Abroad”
  • Report and MP3 Workshop “How to Gain Added Success With Relaxed Concentration”
  • Any updates to any of the courses, workshops, reports or recordings for a year.

You can learn all about this program at How to Have Real Freedom, but do not order the program there for $299 .  If you subscribe to the Purposeful investing Course in the next three days, I’ll send you the program free.

I invite you to join me and a small selective group who for the next year will participate in an intensive program called the Purposeful investing Course (Pi).  The purpose of Pi is finding value to increase the value of and protect our savings, pensions, income and wealth in good times as well as devastating economic conditions.

Learn Slow, Worry Free, Good Value Investing

Stress, worry and fear are three of an investor’s worst enemies.  They create a Behavior Gap, that causes investors to underperform in any market good or bad.  The behavior gap is created by natural human responses to fear.   Pi helps create profitable strategies that avoid losses from this gap.

Lessons from Pi are based on the creation and management of a Primary Pi Model Portfolio, called the Pifolio.  There are no secrets about this portfolio except that it ignores the stories from economic news (often created by someone with vested interests) and is based mainly on good math that reveals the truth through financial news.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets using my (almost) 50 years of global experience and my study of the analysis of four mathematical investing geniuses (and friends).

The Pifolio analysis begins with a continual research of international major stock markets that compares their value based on:

#1:  Current book to price

#2:  Cash flow to price

#3:  Earnings to price

#4:  Average dividend yield

#5:  Return on equity

#6:  Cash flow return

#7:  Market history

We combine the research of several brilliant mathematicians and money managers with my years of investing experience.

This is a complete and continual study of what to do about the movement of international major and emerging stock markets.  I want to share this study throughout 2017 with you.

This analysis forms the basis of a Good Value Stock Market Strategy.  The analysis is rational, mathematical and does not worry about short term ups and downs.  This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.  Little knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of good value indices.  Investments in an index are like investments in all the shares of a good value market.

Pi opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

For example, in the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  Then the cycle ended.  Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview.  He said:  Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

I did well then, but always thought, “I should have invested more!”  Now those circumstances have come together and I am investing in them again.

The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar.  The two conditions are in place again!   There are currently ten good value (non US) developed markets,  plus 10 good value emerging markets.

Pi shows how to easily create a diversified, worry free portfolio in some of these good value markets using Country Index ETFs.

The current strength of the US dollar is a second remarkable similarity to 30 years ago.   The dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  The trends are so clear that I created a short, but powerful report “Three Currency Patterns for 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but when you subscribe to Pi you’ll receive the report, “Three Currency Patterns For 50% Profits or More” FREE.

Plus get the $39.99 report, “The Silver Dip” free.

With investors watching global stock markets bounce up and down, many missed two really important profit generating events.  The price of silver dipped below $14 an ounce as did shares of the iShares Silver ETF (SLV).   The second event is that the silver gold ratio hit 80 and has remained near this level, compared to a range of the 230s only two years ago.

These two events are a strong sign to invest in precious metals.

I prepared a special report “Silver Dip 2015” and updated this in 2017.   The report explains the exact conditions you need to make leveraged silver & gold speculations that can increase the returns in a safe portfolio by as much as eight times.  The purpose of the report is to share long term lessons about speculating in precious metals gained through 30 years of speculating and investing in gold and silver.

The low price of silver offers special value now so I want to send you this report because the “Silver Dip 2017” offers enormous profit potential in 2017.

Save $457.95 if You Act Now

Subscribe to the first year of the Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive FREE the $29.95 report “Three Currency Patterns For 50% Profits or More”, the $27  report “Silver Dip 2015” and the $299 “Live Well and Free Anywhere Program”.

Triple Guarantee

Enroll in Pi.  Get the first monthly issue of Pi and the report “Three Currency Patterns For 50% Profits or More” and the “Live Well and Free Anywhere Program” right away. 

#1:  I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through your own purposeful business and slow, worry free purposeful investing.

If you are not totally happy, simply let me know.

#2:  I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.

#3:  I guarantee you can keep “Three Currency Patterns for 50% Profits or More” and “Silver Dip 2015” plus the Value Investing Seminar as my thanks for trying.

You have nothing to lose except the fear.  You gain the ultimate form of financial security as you reduce risk and increase profit potential.

Subscribe to a Pi annual subscription for $197 and receive all the above.

I am so confident that you’ll gain from this offer that if you are not fully satisfied, simply email me within 60 days for a full refund  and keep the $299 “Live Well and Free Anywhere Program” as my thanks for giving Pi a try.  

Survival in Anarchy Through Publishing Cohesion


Here are some thoughts on how to survive & prosper in anarchy.

You can profit from a groundswell change in the world’s socio-economic system that creates enormous opportunity for small self publishers and exporters now.

ECUADOR-COASTAL-real-estate-tour

Here are delegates on one of our recent Ecuador tours.  See below how these tours help delegates learn how to earn through authenticity and cohesion.

More importantly see why authenticity and cohesion create this opportunity and why so many Americans and Canadians are moving to Ecuador… because of anarchy.

The internet and broadband are helping lead the world into a state of  anarchy… but in a very positive way.

Those who see the upside of this shift will prosper from the change that is coming.

Anarchy has been given a negative connotation, but…  in its truer… deeper meanings, anarchy describes a Utopian State.

One definition of anarchy is:  “A social state in which there is no governing person or group of people, but each individual has absolute liberty (without the implication of disorder).”

Anarchy is pure libertarianism.  In the real world… this state of pure freedom… has rarely worked for long because individuals with absolute authority have not been willing to also accept complete responsibility.  During times of anarchy… self interest groups try to impose their wishes on others by becoming top dog.  Everyone starts stepping on everyone else’s toes.

Traditionally anarchy turns into chaos and disorder.

This seems to be the nature of our universe… shifting from order to anarchy to chaos.

Entropy disintegrates but the process also creates ashes from which a Phoenix will rise.  After order slides into anarchy and  chaos it then comes back into a new order.

This site has recommended the book “Chaos The Making of a New Science” by James Gleick numerous times over the past decade.  An excerpt from that book below outlines a scientific explanation of this universal chaotic order and perhaps can help us see how to help and profit as well in times of change.

If disorder always comes from order then knowing why and how the internet is helping create anarchy, will help us spot  how to serve and profit in the emerging era.

This understanding is important.  Most Westerners are bewildered by the deterioration of the state they were educated to believe in. This is why many are emigrating to South America.  Many are seeking a return to the old Western dream.  Latin America offers a return to seemingly simpler times.

This is why this site also focuses on Smalltown USA where a less complex, friendlier social order still reigns.

The progression of society and the global economy may appear to be in a negative cycle, but common sense suggests that the shifts we are seeing, from order to disorder, are normal and to be expected.

All is in perfect order.  The problem is not the reality but our views that are out of touch with reality.

We can probably presume that most Romans felt equally overwhelmed when barbarians crossed the Rubicon.

Yet here is a point for survival in anarchy… despite the fall of Rome, for the past two millennium, Italy has remained a really great place to live. Italy in this period has been filled with opportunity.

Many Romans experienced great pain and suffering during the Empire’s fall… but those who looked ahead and prepared… were given a great opportunity to prosper as the old order ceased to prevail.  New ideas… fresh energy… enthusiasm and willingness to work became more valuable and rewarding as the old boy’s network, that was draining the empire, failed.

More on Chaos

Here is an excerpt from  James Gleicks book “Chaos – The Making of a New Science”.

What exactly is chaos? The name “chaos theory” comes from the fact that the systems that the theory describes are apparently disordered, but chaos theory is really about finding the underlying order in apparently random data.

When was chaos first discovered? The first true experimenter in chaos was a meteorologist, named Edward Lorenz. In 1960, he was working on the problem of weather prediction. He had a computer set up, with a set of twelve equations to model the weather. It didn’t predict the weather itself. However this computer program did theoretically predict what the weather might be.

One day in 1961, he wanted to see a particular sequence again. To save time, he started in the middle of the sequence, instead of the beginning. He entered the number off his printout and left to let it run.

When he came back an hour later, the sequence had evolved differently. Instead of the same pattern as before, it diverged from the pattern, ending up wildly different from the original.   Eventually he figured out what happened. The computer stored the numbers to six decimal places in its memory. To save paper, he only had it print out three decimal places. In the original sequence, the number was .506127, and he had only typed the first three digits, .506.

By all conventional ideas of the time, it should have worked. He should have gotten a sequence very close to the original sequence. A scientist considers himself lucky if he can get measurements with accuracy to three decimal places. Surely the fourth and fifth, impossible to measure using reasonable methods, can’t have a huge effect on the outcome of the experiment. Lorenz proved this idea wrong.

This effect came to be known as the butterfly effect. The amount of difference in the starting points of the two curves is so small that it is comparable to a butterfly flapping its wings.

The flapping of a single butterfly’s wing today produces a tiny change in the state of the atmosphere. Over a period of time, what the atmosphere actually does diverges from what it would have done. So, in a month’s time, a tornado that would have devastated the Indonesian coast doesn’t happen. Or maybe one that wasn’t going to happen, does.

This phenomenon, common to chaos theory, is also known as sensitive dependence on initial conditions. Just a small change in the initial conditions can drastically change the long-term behavior of a system. Such a small amount of difference in a measurement might be considered experimental noise, background noise, or an inaccuracy of the equipment. Such things are impossible to avoid in even the most isolated lab. With a starting number of 2, the final result can be entirely different from the same system with a starting value of 2.000001. It is simply impossible to achieve this level of accuracy – just try and measure something to the nearest millionth of an inch!

From this idea, Lorenz stated that it is impossible to predict the weather accurately. However, this discovery led Lorenz on to other aspects of what eventually came to be known as chaos theory.

Lorenz started to look for a simpler system that had sensitive dependence on initial conditions. His first discovery had twelve equations, and he wanted a much more simple version that still had this attribute. He took the equations for convection, and stripped them down, making them unrealistically simple. The system no longer had anything to do with convection, but it did have sensitive dependence on its initial conditions, and there were only three equations this time. Later, it was discovered that his equations precisely described a water wheel.

At the top, water drips steadily into containers hanging on the wheel’s rim. Each container drips steadily from a small hole. If the stream of water is slow, the top containers never fill fast enough to overcome friction, but if the stream is faster, the weight starts to turn the wheel. The rotation might become continuous. Or if the stream is so fast that the heavy containers swing all the way around the bottom and up the other side, the wheel might then slow, stop, and reverse its rotation, turning first one way and then the other.

The equations for this system also seemed to give rise to entirely random behavior.  However, when he graphed it, a surprising thing happened. The output always stayed on a curve, a double spiral. There were only two kinds of order previously known: a steady state, in which the variables never change, and periodic behavior, in which the system goes into a loop, repeating itself indefinitely. Lorenz’s equations were definitely ordered – they always followed a spiral. They never settled down to a single point, but since they never repeated the same thing, they weren’t periodic either. He called the image he got when he graphed the equations the Lorenz attractor.

In 1963, Lorenz published a paper describing what he had discovered. He included the unpredictability of the weather, and discussed the types of equations that caused this type of behavior. Unfortunately, the only journal he was able to publish in was a meteorological journal, because he was a meteorologist, not a mathematician or a physicist. As a result, Lorenz’s discoveries weren’t acknowledged until years later, when they were rediscovered by others. Lorenz had discovered something revolutionary; now he had to wait for someone to discover him.

Another system in which sensitive dependence on initial conditions is evident is the flip of a coin. There are two variables in a flipping coin: how soon it hits the ground, and how fast it is flipping. Theoretically, it should be possible to control these variables entirely and control how the coin will end up. In practice, it is impossible to control exactly how fast the coin flips and how high it flips. It is possible to put the variables into a certain range, but it is impossible to control it enough to know the final results of the coin toss.

A similar problem occurs in ecology, and the prediction of biological populations. The equation would be simple if population just rises indefinitely, but the effect of predators and a limited food supply make this equation incorrect. The simplest equation that takes this into account is the following:

next year’s population = r * this year’s population * (1 – this year’s population)

One biologist, Robert May, decided to see what would happen to the equation as the growth rate value changes. At low values of the growth rate, the population would settle down to a single number. For instance, if the growth rate value is 2.7, the population will settle down to .6292. As the growth rate increased, the final population would increase as well. Then, something weird happened. As soon as the growth rate passed 3, the line broke in two. Instead of settling down to a single population, it would jump between two different populations. It would be one value for one year, go to another value the next year, then repeat the cycle forever. Raising the growth rate a little more caused it to jump between four different values. As the parameter rose further, the line bifurcated (doubled) again. The bifurcations came faster and faster until suddenly, chaos appeared. Past a certain growth rate, it becomes impossible to predict the behavior of the equation. However, upon closer inspection, it is possible to see white strips. Looking closer at these strips reveals little windows of order, where the equation goes through the bifurcations again before returning to chaos. This self-similarity, the fact that the graph has an exact copy of itself hidden deep inside, came to be an important aspect of chaos.

An employee of IBM, Benoit Mandelbrot was a mathematician studying this self-similarity. One of the areas he was studying was cotton price fluctuations. No matter how the data on cotton prices was analyzed, the results did not fit the normal distribution. Mandelbrot eventually obtained all of the available data on cotton prices, dating back to 1900. When he analyzed the data with IBM’s computers, he noticed an astonishing fact:

The numbers that produced aberrations from the point of view of normal distribution produced symmetry from the point of view of scaling. Each particular price change was random and unpredictable. But the sequence of changes was independent on scale: curves for daily price changes and monthly price changes matched perfectly. Incredibly, analyzed Mandelbrot’s way, the degree of variation had remained constant over a tumultuous sixty-year period that saw two World Wars and a depression.

We can glean insights into how to react in the future from this excerpt which shows us that:

#1:  It is impossible to predict anything perfectly.
#2: There are little windows of order within all chaos.
#3:  There is sensitive dependence on its initial conditions. Little changes bring huge results.
#4:  There is self-similarity, exact copies of the past hidden deep inside in present and future, even during chaos.
#5:  The degrees of variation remain constant over all, even tumultuous periods.

This suggests that chaos is simply our misunderstanding of order and if we always plan and look for the positive in this chatter… we’ll find better times and opportunity.

Back to the internet… cohesion… and authenticity.

The previous order was ruled by broadband. Radio, TV, records, newspapers, cinema  provided cohesion in the North American and European society.  The majority heard the same music… saw the same shows… at just about the same time… and there were not all that many channels.

Children went to school had about the same education, talked about the commonalities they saw the night before, then at home they connected again to the same input, as everyone else.  So life in Maine was not that different from life in Southern California… because everyone received the same broadcast on just a few networks.

Now children go home form school and tap into hundreds of thousands of different networks… perhaps millions on the net.  This small change in the initial conditions of the formation of our future society is likely to have profound consequences.   A much broader spectrum of thought will influence the upcoming generation beyond Elvis, The Beachboys, Beatles and Jan & Dean.

What this specifically will mean… is unpredictable… but we can see in a bigger picture how this will reduce national cohesion everywhere. Loyalties will rise from common interests shared on the internet… not from the effects of broadcast within a political boundary.

Governments will find this force hard to resist.  If they limit their population’s input… they will limit access to the global economy and advances from  deeper knowledge… lower productivity and especially reduce innovation.  This will cripple and handicap societies that shut down or censor the net.

Publishing and export opportunities comes from this because:

#1: Societies need cohesion.

#2: The global community is the best answer for business productivity. Political borders are inefficient.  True cohesion comes from truth (authenticity). Few political manifestos or the administrations of these manifestos are honest or true.

#3: Small pockets of truth (your publishing or export business) reflected around common interests can create business opportunities because they act like little windows of order during times of increased turmoil.

Let me give you a clear and specific example…. our Ecuador export… and Quantum Thinking and Spanish business.

Despite a tremendous decline in the economy over the past several years… these businesses have been growing at a rate of over 20%.  Is this Americans fleeing the US?  Americans and Canadians headed south?

Only in part.

international-business

Here are delegates at our most recent Super Thinking Plus Spanish seminar in Florida. These delegates were from the USA, Canada, France, South Africa, Sri Lanka and China… bound not by political boundaries… but by common interests… to increase intelligence to adapt to change and to communicate better in Spanish.

Look for small windows of lunacy as the world seems to become insane… small truths that will shine in a swelling tide of lies. If you can find a genuine way to serve your fellow man by crossing borders with products (exporting) or valuable information (publishing) then you can gain stability and profit from the very same internet that is also creating anarchy.

Gary

Learn about our self publishing course here.

Learn how to earn income through a global business at our Quantum Wealth seminars.

One recent delegates from the British Commonwealth wrote:

Dear Gary and Merri…  I wanted to say thank-you-first of all for your kindness and generous Information while I was in Ecuador this February.
I came up to Cotacahi, went on two real estate tours with Bonnie..and stayed at Meson de las Flores before the IL conference.

I am still working on how my life will move this year… I have many options to think about and am still trying to sell my current land-based business.

Back here I am working on putting together a ‘presentation’ for locals who may be interested In Ecuador.

I am simply going to put an ad in the local paper and book my church hall if the response  is greater than 20 people or so.

I had a few adventures while I was in Ecuador and am looking forward to a fresher,freer and financially improved lifestyle.

There are many ways to earn extra income… through an international business in exports… self publishing and with global internet businesses. Our Quantum Wealth seminars look at many ways to profit.

Enroll now in our June 24 to 27 Quantum Wealth Seminar.

Enroll here. $749 Reserve for one person –  $999  Reserve for two

Learn more about our Quantum Wealth International Investing and Business Seminar here.

Learn how to gain earning freedom with Ecuador exports and real estate.

April 12-15 Ecuador Export Expedition Tour

ECUADOR-COASTAL-real-estate-tour

Bonnie Keough will lead our April Ecuador export tour.

ECUADOR-COASTAL-real-estate-tour

here is a group on a tour with Bonnie in February 2010.

Here are some of the products that Bonnie imports herself including…

ECUADOR-export-tour

organic chocolate.

ECUADOR-export-tour

Textiles and…

ECUADOR-export-tour

knitted jackets are good sellers plus…

ECUADOR-export-tour

low cost jewelry out of vegetable ivory…

ECUADOR-export-tour

beads have good markups.

ECUADOR-export-tour

Handbags of leather and…

ECUADOR-export-tour

cloth are also good.

Stay after the export tour and view Ecuador real estate for sale.

Apr. 17-18   Imbabura Real Estate Tour
Apr. 20-21  Coastal Mid Coast Real Estate Tour
Apr. 23-24  Quito & Mindo Real Estate Tour

Learn how to export Ecuador flowers and much more.

Learn more about Ecuador Roses here

Ecuador-christmas-roses

Learn how Fedex delivers Ecuador Easter lilies to your home.

ecuador-floral-information

Learn more about our May 9-12, 2010 Cotacachi Super Thinking Plus Spanish course here.

May 9-12       Super Thinking + Spanish Course, Cotacachi Ecuador

May  13-14    Ecuador Shamanic Mingo

May  16-17    Imbabura Real Estate Tour

May  19-20    Coastal Real Estate Tour

May  22-23    Quito Real Estate Tour

May  25-26    Cuenca Real Estate Tour

You enjoy discounts by attending multiple seminars and tours.

Here are our multi tour adventure discounts.

Two Pack… 2 seminar courses & tours $998 Couple  $1,349 Save $149 on couple

Three Pack… 3 seminar courses & tours   $1399 Couple  $1,899 Save $98 single or $348 on a couple or more

Four Pack… 4 seminar courses & tours   $1,699 Couple $2,299 Save $98 single or $697 on a couple or more

Five Pack… 5 seminar courses & tours  $1,999 Couple $2,699 Save $496 single or $1,046 on a couple or more

Six Pack… 6 seminars courses & tours  $2,199 Couple $3,099 Save $795 single or $1,395 on a couple or more

Here is our June 2010 schedule.

June 24       Quantum Wealth North Carolina

June 25-27    International Investing and Business North Carolina

June 28-29    Ecuador Travel & Andes

June 30-Jul 1 Imbabura Real Estate Tour

Ecuador Singles


Ecuador Singles are very safe in many parts of Ecuador.

A reader recently sent this note. Hello Gary,  I have thoroughly enjoyed reading all your emails on Ecuador.  I would love to visit you when I have some funds available, and because of the economy my funds are non existent for travel now.  I have been told by several people and particularly by a Panamanian friend (female), that Ecuador is very dangerous because of the Colombian drug situation.  Crime is big and is it dangerous for a single female such as myself, to go there.

Here is my reply.  There is a popular misconception that Ecuador is a dangerous place.

This is like saying New York City  is a dangerous place.  Sure there is danger in some parts of New York. My research suggests that if you are in Manhattan and go to East and Central Harlem it can be a bit sketchy. Ditto for Washington Heights.   In Brooklyn, East New York, Brownsville and Crown Heights may not be good places to stroll at night.

Yet overall New York City has the lowest crime rate among the ten largest cities in the United States.  Since 1991, the city has seen a continuous fifteen-year trend of decreasing crime.

Then there are those who know what to do and are safe even in dangerous places. One site I researched said of East Harlem:  I have an uncle, who lived with his wife in one of the housing projects in East Harlem and manage to raised three children there since living there in the 80’s and 90’s. But he just moved out about a year ago. He said that the changes in the area got much better after the 2000’s. He said, he would stay, but they already had saved enough money and already buy property in Puerto Rico.

This is true of Ecuador as well. There are places you won’t find me walking around and I pretty well know what to do… how to look out.  I have only been robbed three times in 41 years of global travel… once in London and twice in the US… all at home or within two blocks of home.

Yet many parts of Ecuador are far safer than in North America.  We have dozens of single women readers who have moved from the US and Canada now living in Ecuador and have never heard a single complaint. They are probably safer in Ecuador than in most US cities.

I have written about this extensively at this site. If you have concerns please search the phrase “ecuador crime” at this site.  You will see numerous recent articles we have published.

There is also a good BBC article about crime in South America.  You will notice that the article does not mention Ecuador as one of the high crime areas in Latin America.

Ecuador has always seemed like a very safe place to us. We have taken thousands of people to Ecuador and though groups and tourists are always targets for crime… wherever they travel in the world… we have never experienced a violent incident.

From a security point of view one has to be on the lookout for pick pockets in tourist areas but other than that our thousands of readers who have visited Ecuador report few problems…  as mentioned not one incidence of violence.  We advise people at this time not to stay or visit the area of Mariscal Sucre nor go anywhere near the Colombian border or in the province of Esmeraldas.  Crime in Guayaquil in the 14 years we have been there was once bad but due to government measures is not as bad now.  Parks in Quito have trouble with theft and the like and it is good to just avoid these areas.

Our site covers our thoughts on risk extensively.

Here are links to just a few of the numerous articles we have posted about Ecuador safety.

www.garyascott.com/2008/12/02/3062.html

www.garyascott.com/2009/05/09/4944.html

www.garyascott.com/2009/03/08/4115.html

www.garyascott.com/2008/12/04/3072.html

www.garyascott.com/2008/12/02/3062.html

www.garyascott.com/2008/11/22/3001.html

www.garyascott.com/2009/08/22/6303.html

To assist those interested in Ecuador Ecuador Living has established a full time full support research and assistance team to help Ecuador Living subscribers in any way required.

This complete service includes our staff being able to provide personal responses to your questions about Ecuador crime.

You can subscribe here

Other services offered include scanning Ecuador newspapers looking for unique properties and put our subscribers directly in touch with sellers … thus avoiding brokerage fees.

We also help our subscribers by asking developers (since we are not brokers and do not to accept real estate commissions) to provide discounts to our subscribers if they buy property.

For example, one Quito property seller is offering a $10,000 discount to our subscribers on a spectacular Quito condo.

In another example there are 4 buildings at Primavera II in Cotacachi. The first building has condos at $46,500.

Ecuador Living subscribers can subtract 2% off most of the prices of most new units at Primavera.

In another case the Vistazul condos north of Manta provides our subscribers a $10,000 savings plus a free Galapagos cruise.

Helping subscribers find real estate is only one part of our service.  If you have an interest in traveling, investing, living, buying property or doing business in Ecuador a subscription to Ecuadorliving.com brings many benefits.

One huge benefit in using our service versus relying on brokers or travel agents is that we are not trying to sell real estate. For our modest subscription you get our honest opinion based on 40 years of international business and 13 years of living, traveling and doing business in Ecuador.

Ecuador Living subscribers gain access to our extensive contacts plus share the input from over 18,000 subscribers who continually let us know what they see hear and experience good and bad. We conduct real estate tours to help our subscribers learn Ecuador’s real estate market in the most efficient way.

There are three sources of more than 1000 pages of free information about Ecuador please see www.garyascott.com and www.successguidelines.com/ecuador_real_estate/index.htm and www.ecuadorliving.com

Our Ecuador Living service goes beyond this free information.  You can subscribe here

Regards,

Gary

Join us in Ecuador or Florida or Both. See the best Ecuador property for you.  Find the best real estate offers.  Know more of Ecuador. To help you experience a bigger adventure in this wonderful nation, to broaden your horizons, to expand your awareness of all Ecuador offers, we are providing deep discounts in 2010 for those who sign up for multiple tours.

Join us at our upcoming courses and tours.

December 6-8 Blaine Watson’s  Beyond Logic & Shamanic Tour

December 9-10 Imbabura Real Estate Tour

December 11-13 Ecuador Coastal Real Estate Tour

Join us in 2010. See our winter Ecuador real estate tours below.

Jan.   8-11     Ecuador Export Tour $499 Couple  $749

Jan. 13-14     Imbabura Real Estate Tour   $499 Couple $749
Jan. 21-22     Coastal Real Estate Tour $499 Couple $749
Jan. 23-24    Quito-Mindo Real Estate Tour  $499 Couple $749
Jan. 22-23    Cuenca Real Estate Tour  $499 Couple $749

Enjoy extra savings with our special early bird fees (if you enroll in November 2009)

Join us in February or March.

Feb. 11-14   Quantum Wealth Florida -International Investing & Internet Business, Mt. Dora, Florida ($749) Couple $999

Feb. 15-16   Travel to and visit Quito
Feb  17         Travel to Manta
Feb. 18-19   Coastal Real Estate Tour   $499 Couple $749 or discounted fee for multiple tours below.
Feb. 20        Travel to Cotacachi
Feb. 21-22   Imbabura Real Estate Tour  $499 Couple $749 or discounted fee for multiple tours below.
Feb. 23-24  Quito-Mindo Real Estate Tour $499 Couple $749 or discounted fee for multiple tours below.
Feb. 26-27  Cuenca Real Estate Tour  $499 Couple $749 or discounted fee for multiple tours below.

Mar. 11-14     Super Thinking + Spanish Course, Mt. Dora, Florida $749 Couple $999

Mar. 15-16    Travel to Quito and Andes
Mar. 17-18     Imbabura Real Estate Tour   $499 Couple $749 or discounted fee for multiple tours below.
Mar. 19-20    Cotacachi Shamanic Tour      $499 Couple $749 or discounted fee for multiple tours below.
Mar. 22-23    Coastal Real Estate Tour        $499 Couple $749 or discounted fee for multiple tours below.
Mar. 25-26    Cuenca Real Estate Tour        $499 Couple $749 or discounted fee for multiple tours below.

Enjoy extra savings with our special early bird fees (if you enroll in November 2009)

2 seminar courses & tours $949 Couple  $1,399

3 seminar courses & tours   $1199 Couple  $1,749

4 seminar courses & tours   $1,399 Couple $2,149

5 seminar courses & tours  $1,599 Couple $2,499

6 seminars courses & tours  $1,999 Couple $2,999

(Be sure to show in the comments section which courses and tours you are attending)

International Club attend up to 52 courses and tours in 2010 free.

See our entire 2010 seminar and tour schedule here

Cuenca Real Estate


Cuenca Real Estate

The Cuenca real estate market grows.

Cuenca-real-estate

Real Estate in Cuenca has wonderful architecture. Here is Cuenca’s Main Square.

Even the daily press is catching on to Cuenca and Ecuador real estate.

An article “House Hunting in … Ecuador” by Lisa Keys recently appeared in the New York Times.

Here are excerpts from that article: A THREE-BEDROOM, 3000-SQUARE-FOOT HILLTOP HOME IN CUENCA
$220,000  This rustic home — made from local bamboo, hardwood, river rock and tile — was built two years ago by a local architect. It sits on a third of an acre in the Cuenca, a Unesco world heritage site about 300 miles south of Quito.

The front door is inlaid with the local wood, called chanul. An open living room/dining area has mountain views, as well as a stone fireplace, exposed hardwood beams and posts, and a brick ceiling. Off the dining area is a 96-square-foot terrace. The eat-in kitchen has granite countertops; off the kitchen is a maid’s suite. The master bedroom is on this level, along with a second bedroom; both bedrooms have en-suite baths.

A brick-and-bamboo staircase leads upstairs to a sitting area and another bedroom, which has a sloped ceiling and a 36-square-foot terrace. The lower level has a workshop and a storage room.

The house is off an unpaved road in the Rio Amarillo neighborhood, in the foothills of the Cajas Mountains. The area, until recently very rural, is morphing into a suburban neighborhood with large homes, according to David Morrill, the home’s listing agent.

Colonial buildings, art galleries, museums and concert sites are about six miles away in Cuenca. A shopping center as well as Cuenca’s indigenous market is four miles away; the airport, with numerous daily flights to the international airports in Guayaquil and Quito, is eight miles away.

MARKET OVERVIEW

Though predominantly a local real estate market, Cuenca is becoming increasingly popular with American expatriates, particularly retirees, said Mr. Morrill, a partner at Cuenca Real Estate. They are attracted to the relative affordability, he said.

In spite of the global economic downturn, home prices in Cuenca continue to rise, in part, because of they are relatively low to begin with. Condos sell for around $700 a square meter ($56 to $65 a square foot); new construction is $850 a square meter ($79 a square foot), Mr. Morrill said. Single-family homes are $300 to $500 a square meter ($28 to $46 a square foot); new construction is approximately $500 a square meter ($46 a square foot), he added. The house featured here is more expensive than the average, at $73 a square foot, because of its unique design and expensive building materials.

North American buyers are not the only reason for the uptick.

There are some great things about Cuenca like…

Cuenca-real-estate

The agriculture that surrounds Cuenca. Here is an organic farm in the San Joachin area of Cuenca.

One of Cuenca’s public markets.

Cuenca-real-estate

Here a Cuenca flower vendor in one Cuenca’s many public markets.

Cuenca-real-estate

Cuenca has many parks. Here is Parque de Paraiso which has walking and biking trails.

Cuenca-real-estate

Four rivers flow through Cuenca.

Cuenca-real-estate

Yet there are more forces pushing Cuenca’s and Ecuador’s real estate market.

An article from entitled “$600 Million Earmarked by Government for New Housing projects” World Assurance Group Inc.” says: Nov 02, 2009,  World Assurance Group Focuses on Central America in Conjunction With a New Ecuadorian Housing Mandate . World Assurance Group (PINKSHEETS: WDAS) announced today that the Ecuadorian Government has recently announced substantial policies aimed to increase new home buyers in Ecuador.  New home buyers will be allowed a $ 3,960 bonus given by the Housing Ministry for a new house they purchase. It seeks to expand such support to $ 5,000 for homes with a value of up to $ 60,000.

WDAS had announced on Oct 22, 2009 that its subsidiary ANAV Holdings Corporation signed a proposal to enter into a purchase agreement for an 8.5% participating interest in a 15 hectare private housing community located at one of the leading ports in Latin America with Premier Developments. The project’s first phase is in full production and has already sold 20% of the 207 homes. The entire project including phase two will be an estimated 500 home development. Currently these homes sell for $40,000 – $80,000 price range.

Low prices…  great natural resources… colonial charm… every facility a city can possess… but not too many people are all helping Cuenca real estate grab attention.  All of this will help the Cuenca real estate market to grow.

Gary

See the best Ecuador property for you.  Find the best real estate offers.  Know more of Ecuador. To help you experience a bigger adventure in this wonderful nation, to broaden your horizons, to expand your awareness of all Ecuador offers, we are providing deep discounts in 2010 for those who sign up for multiple tours.

See more on Cuenca real estate  at “Cuenca Real Estate

Gary

Join us in Ecuador or Florida or Both. See the best Ecuador property for you.  Find the best real estate offers.  Know more of Ecuador. To help you experience a bigger adventure in this wonderful nation, to broaden your horizons, to expand your awareness of all Ecuador offers, we are providing deep discounts in 2010 for those who sign up for multiple tours.

Join us at our upcoming courses and tours.

December 6-8 Blaine Watson’s  Beyond Logic & Shamanic Tour

December 9-10 Imbabura Real Estate Tour

December 11-13 Ecuador Coastal Real Estate Tour

Join us in 2010. See our winter Ecuador real estate tours below.

Jan.   8-11     Ecuador Export Tour $499 Couple  $749

Jan. 13-14     Imbabura Real Estate Tour   $499 Couple $749
Jan. 21-22     Coastal Real Estate Tour $499 Couple $749
Jan. 23-24    Quito-Mindo Real Estate Tour  $499 Couple $749
Jan. 22-23    Cuenca Real Estate Tour  $499 Couple $749

Enjoy extra savings with our special early bird fees (if you enroll in November 2009)

Join us in February or March.

Feb. 11-14   Quantum Wealth Florida -International Investing & Internet Business, Mt. Dora, Florida ($749) Couple $999

Feb. 15-16   Travel to and visit Quito
Feb  17         Travel to Manta
Feb. 18-19   Coastal Real Estate Tour   $499 Couple $749 or discounted fee for multiple tours below.
Feb. 20        Travel to Cotacachi
Feb. 21-22   Imbabura Real Estate Tour  $499 Couple $749 or discounted fee for multiple tours below.
Feb. 23-24  Quito-Mindo Real Estate Tour $499 Couple $749 or discounted fee for multiple tours below.
Feb. 26-27  Cuenca Real Estate Tour  $499 Couple $749 or discounted fee for multiple tours below.

Mar. 11-14     Super Thinking + Spanish Course, Mt. Dora, Florida $749 Couple $999

Mar. 15-16    Travel to Quito and Andes
Mar. 17-18     Imbabura Real Estate Tour   $499 Couple $749 or discounted fee for multiple tours below.
Mar. 19-20    Cotacachi Shamanic Tour      $499 Couple $749 or discounted fee for multiple tours below.
Mar. 22-23    Coastal Real Estate Tour        $499 Couple $749 or discounted fee for multiple tours below.
Mar. 25-26    Cuenca Real Estate Tour        $499 Couple $749 or discounted fee for multiple tours below.

Enjoy extra savings with our special early bird fees (if you enroll in November 2009)

2 seminar courses & tours $949 Couple  $1,399

3 seminar courses & tours   $1199 Couple  $1,749

4 seminar courses & tours   $1,399 Couple $2,149

5 seminar courses & tours  $1,599 Couple $2,499

6 seminars courses & tours  $1,999 Couple $2,999

(Be sure to show in the comments section which courses and tours you are attending)

International Club attend up to 52 courses and tours in 2010 free.

See our entire 2010 seminar and tour schedule here

$600 Million Earmarked by Government for New Housing projects

www.marketwire.com/press-release/World-Assurance-Group-Inc-1069068.html

Ecuador’s Season


Our belief in Ecuador, as a place to live and invest, comes in part because of its position in the seventh wave of the industrial revolution.

We conducted our International Investing & Business Course last weekend here at the Jefferson Lansing Golf resort clubhouse.

ecuador-season

We reviewed cycles and seasons… how Ecuador opportunity and business in Ecuador really pick up at about this time of the year.  Ecuador’s up season is coming up.

Seasonality is a really important factor of investing to keep in mind… especially right now… as we will see below.

First, in that course we looked at the Asset Allocation of my portfolio and…

Ecuador Property      15%
US Property                46%
Total Real Estate   61%
Equities                           3%
Emerging Bonds            9%
Bonds                             14%
Cash                                13%
Total Liquid              39%

Why I have so little in the stock market now is due to cycles, seasonality and personal values.

Regarding seasonality, October is the bewitching month of  shares.

We viewed how, since the beginning of the Industrial Revolution, the western economy has been moving through fifteen-year upward and downward cycles.  We saw how we are in the tenth year of a potentially 15 year downward wave.

Since the 1800s the stock market has moved in 30 year waves, peaking in bubbles and ending in troughs. Technology, warfare and politics are all related to these cycles. The phrase that coined this great social economic transformation we call the “Industrial Revolution,”  according to historian David Landes, was first in a letter of 1799 written by French envoy Louis-Guillaume Otto.

Since that time mankind has enjoyed ten boom cycles… each created by new technology. Each boom has been followed by a bust… a bear market… a down wave that lasts about 15 years…. for 310 years.

So it is appropriate that in information era up wave  (the dotcom bubble) the Dow topped at 10,336  and then crashed Oct 1, 1999… 300 years after the first revolution began.

Here is a chart of the Dow in that 10th upward period from www.finance.yahoo.com.

ecuador-season

That crash began the current 15 year side ways model that marks the downward cycle.   The peaks and valleys, consistent with the downward wave has slaughtered many investors which, I explained at the course,  is why I have so few equities now.

Seasonality is why I  am not buying equities in October as well.

We viewed how seasonality was at work. Over 30 years the Dow has grown 8.16% overall but all of that growth and more (8.36% per annum average)  has come in the months of November through April. The average annual growth per annum over thirty years in May  to October is only 0.37%.

In other words… October is a volatile month for shares.  In fact the worst days of  the US stock market have been in October.

Black Thursday was October 24th in 1929. During that frenetic day nearly 13 million shares changed hands, nearly four times the norm.  Black Tuesday was October 29, 1929.   The market was slashed again leaving the Dow 40% down in that week.

ecuador-season

Black Monday  was October 19, 1987, global equity markets crashed, starting in Hong Kong. Panic rushed to Europe and then knocked the Dow Jones Industrial Average (DJIA) down 22.61%, its largest one day drop ever.

ecuador season

In short the good equity growth season is about to begin.

Market timing is never more important than the search for value… but it sure can help the search for value.

Seasonality studies give support to the current bear market recovery but suggest the support is best after October.

Plus watch out for a severe October market correction!

Thomas Fischer from Jyske Global Asset Management was with us and pointed out that JGAM’s  low risk portfolios have a very underweight position in equities as well.

During the course we also looked at the importance of personal values in investing by enjoying the process.

We saw some great autumnal beauty…

ecuador-intuition

in the Blue Ridge during the course.  We walked some glorious paths.

ecuador-intuition

Yet this is an El Nino year… a cold winter is predicted.  A long one maybe.

Excerpts from a 19 August 2009 UN New Center article entitled “El Niño weather pattern likely to continue into 2010, explains why: The United Nations agency dealing with weather, climate and water says an El Niño event has begun in the tropical Pacific and is likely to continue into early 2010.

El Niño and La Niña bring significant temperature fluctuations in surface waters of the tropical belt of the Pacific Ocean: an El Niño event sees a rise in temperatures and La Niña witnesses a drop in normal temperatures.

These temperature changes are strongly linked to major climate fluctuations around the world, especially in Latin America, Australia and East Asia, which can last for a whole year or more. Both El Niño and La Niña can disrupt the normal weather patterns and have widespread impacts on climate in many parts of the world.

The UN World Meteorological Organization (WMO) said today that sea-surface temperatures in the eastern equatorial Pacific had risen to between 0.5 and 1 degree Celsius warmer than normal by the end of June, with similar temperatures in July.

“Scientific assessments of these observations indicate that this warming resembles the early stages of an El Niño event,” the Geneva-based agency stated in a news release.

In its most recent update on the subject, WMO stated that the expectation is for El Niño conditions to very likely prevail through the remainder of 2009 and into the first quarter of 2010.

Last year our autumn paths in October turned…

ecuador-season

to this in November.

ecuador-season

Here was the weather report yesterday Oct.14 2009 at Asheweather.comRainy, cold, and raw about sums it up for today. High temperatures for the day were early this morning; We’ll slip into the lower 40s for the rest of the daytime as rather steady rain continues. Watch out for thick, dangerous fog along the Blue Ridge today through much of Thursday. And yeah, we weren’t kidding about that weekend snow shower thing. Gory details below.

Here are some weather statistics for our area that suggest what  happens in Southwest Virginia and Northwest North Carolina (where we are in the Blue Ridge) during an El Nino year.

Roanoke’s snowiest month on record was January 1966, with more than 41 inches. That was during an El Nino.

Roanoke’s coldest winter on record was that of 1977-78, which also had more than 37 inches of snow. That was during an El Nino.

Roanoke got 19 inches of snow on Feb. 10 and 11, 1983. That was during an El Nino.

Roanoke’s snowiest year of the 1950s (1957-58), second snowiest of the 1990s (1992-93) and snowiest of the 2000s (2002-03) each in the 28-to-30-inch range occurred during El Ninos.

Long term patterns in weather or stock markets are no guarantees… but by looking at the odds wouldn’t you rather invest in equities at a time that historically has shown the highest appreciation year after year.   And though snow and cold are not guaranteed up north, wouldn’t you rather have this in the dead of winter (Mt Imbabura) or…

ecuador-season

this?

ecuador-season

Ma, Merri and our friend Steve Hankins at our condos in San Clemente, Ecuador.

This is why we added three more courses and tours in December in our 2009 schedule and will have even more Ecuador courses in January though March 2010.

The remaining 2009 courses are below.

Gary

Join our Ecuador courses and tours October, November or December.

The greatest asset of all is the ability to labor at what you love wherever you live. This brings everlasting wealth.

This is why we are providing a special three for one offer with our  course Tangled Web… How to Have an Internet Business

This course 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 all our seminars or tours for any one month, October, November or December, “Tangled Web… How to Have an Internet Business Course,”  “Self Fulfilled- How to be a Self Publisher” and “International Business Made EZ” free.

Head south to Ecuador!

ecuador-hotel

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

ecuador-hotel

In Cotacachi the weather is always Spring like.  Here is the village plaza near our hotel Meson de las Flores.

ecuador-hotel

Let our friendly staff at Meson de las Flores serve you.

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

ecuador-hotel

This shorts weather photo was taken from our beach penthouse in February.

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

December 6-8 Beyond Logic Shamanic Tour

December 9-10 Imbabura Real Estate Tour

December 11-13 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 UN article El Niño weather pattern likely to continue into 2010, says UN agency

Ecuador Golf Course for Sale


This 9-hole Ecuador golf course is for sale.

See more on Ecuador golf

This is a small business opportunity, a 21.39 acre estate with an executive golf course, pitching and putting, 6 greens on a 5 acre area.  It has six cabins plus a two bedroom, one bathroom house.

ecuador-canada-connection

This property was one the market at one time at a price that was too high… $1.6 million dollars.

Now the owner has adjusted it down to a realistic price  $860,000 in his offer below… but I believe he will take less as he offered us a commission which we explained we do not take.  Use this fact… that you are coming to him without a brokerage cost… if you get into a negotiation.

Here is what the owner sent

Rancho Totoral Hostería & Laguna Golf Course

Business & Promotion

NAME:       RANCHO TOTORAL HOSTERIA & LAGUNA GOLF COURSE.

OFFERS:
•    A 85,574.01 m2 Lot (21.39 acres approximately)
•    An executive golf course, pitching and putting, 6 greens in a 2 hectares (5 acres) area, with a sprinkle irrigation system; 3” water pump with a 10 H.P. diesel motor.  The irrigation water supply is from the property reservoir. (Off season)
•    The right to have 15 hours 40 minutes of irrigation water.
•    BENYE 254 –Tractor.
•    CARONI 3 blades LAWNMOWER (rough cut).
•    TORO REELMASTER FRAME 7 blades reel to cut fairways.
•    MOTOCULTOR BCS 745- 3blades LAWNMOWER to cut prior greens grass and to aerate the golf course.
•    TORO GREENMASTER 1000- to cut greens extra fine.
•    GROOMING REEL – attaches to the GREENMASTER to make vertical cuts to the greens.
•    A 1.000 liter tank to fumigate (2 wheel axis, rim 15) with a 3.5 H.P.  BRIGGS STRATTON gas motor and a 1.5” pump.
•    WAGON (2 wheel axis rim15).
•    REPAIR WORKSHOP with a variety of maintenance tools.

HOSTERIA:
•    6 LODGE CABINS (31 m2 or 333,56  sq2), each one in excellent conditions, color T.V., wall to wall carpet, balcony with lagoon and mountains view, unique garden bathrooms. Two double beds in each room.
•    RESTAURANT/CAFETERIA- max capacity 60 guests, bar, lounge, direct TV service, restrooms, lobby and kitchen in an area of 269 m2 (2,894  sq2).  All restaurant and kitchen items included.
•    PATIO area- roof, includes a clay oven and a laundry room
(47 m2 /505,72 sq2).
•    CLEAR ROOF TERRACE PATIO (120 m2 / 1,291.2 sq2).
•    HOSTERIA  MAIN ENTRANCE with an electric gate.
•    MAYTAG Washer and Dryer.
•    RESERVOIR CISTERN of 16 m3 for drinking water.
•    HOUSE on 2nd story includes: 2 bedrooms, 1 bath, living room and a loft (147 m2 / 1,582.72 sq2)
•    LAGOON ACCESS with a 64m  shore.
•    Wonderful gardens and cobbled paving paths.

VALUE OF PROPERTY, CONSTRUCTION, EQUIPMENT AND MACHINARY.

•    A 85,574 m2 Lot (21,39 acres) based on Municipal appraisel.
•    Six available cabins (186 m2 / 2,001.36 sq2  approximately).
•    Restaurant, Restrooms, lounge with DTV, front desk lobby, and kitchen (269 m2 / 2,894 sq2 ).  includes restaurant supplies for 100 guests.
•    A 2 bedroom 1 bath apartment on second story and a loft on the third floor.
•    Outdoor lounge, a clay oven, and worhshop (47 m2 / 505.72 sq2 )
•    translucid roof terrace patio (120 m2 / 1,291.20 sq2).
•    pressure Water pump,  maytag washer and dryer.
•    cistern (16m3) drinking water reservoir.
•    cobbled paving paths, gardens, and electric gates.
•    executive golf course (pitching and putting, 6 greens,
(off season )
•    golf course  machinary:
•    BENYE 254 –Tractor.
•    CARONI 3 blades LAWNMOWER (rough cut).
•    TORO REELMASTER FRAME 7 blades reel to cut fairways.
•    MOTOCULTOR BCS 745- 3blades LAWNMOWER to cut prior greens grass and to aerate the golf course.
•    TORO GREENMASTER 1000- to cut greens extra fine.
•    GROOMING REEL – attaches to the GREENMASTER to make vertical cuts to the greens.
•    A 1.000 liter tank to fumigate (2 wheel axis, rim 15) with a 3.5 H.P.  BRIGGS STRATTON gas motor and a 1.5” pump.
•    WAGON (2 wheel axis rim15).
•    REPAIR WORKSHOP with a variety of maintenance tools.

ASKING PRICE   $ 860.000,00.-

Contact

EDUARDO VILLALOBOS
RANCHO TOTORAL HOSTERIA & LAGUNA GOLF COURSE
rtotoral@imbanet.net
www.ranchototoralhosteria.com
P.O. BOX 10-01-224  Ibarra
Telefax: (593-06- 2955-544)
Cell:  094805605

Here is more on this Ecuador golf course for sale.

The lake in question is Laguna Yaguarcocha, just five minutes north of the city of Ibarra and a little more than half hour drive along main highways north from Cotacachi.

Ecuador Day 3 089

There is a ridge which runs between the lake and the city of Ibarra and from a local lookout point you get the view of the lake above and also the city below.

Ecuador Day 3 087

The property is called Rancho Totoral.

Here’s a picture from just last Sunday of our Imbabura real estate group eating lunch on the newly constructed patio. By the way, Eduardo the owner, tells me the architect designed roof over the patio cost just $8,000 to put up last summer.

P1030417

Last Sunday, just as all our delegates were finishing lunch I strolled over to Eduardo and asked if he wanted to present his project. He has about 22 acres in total and had been thinking of building some townhouses with a local constructor. To my complete surprise he said, “..well actually me and Patricia (his wife) have decided to sell the whole property”.

Suddenly I found myself with unexpected news to convey to the group. As we strolled out on to the grounds, one delegate, a successful internet company owner, said “let me guess – $1.8 million” and I said close ” but the asking price is $1.6 million”.

Of course, not all of us have that kind of money but if that price sounds a little high, bare in mind that just bare land around this desirable lake is selling at $10 per square meter and Eduardo’s price is only for the land and buildings – he’s asking $18 per square meter for thousands of square meters of construction and a 9 hole functioning golf course with the business thrown in. Here’s a shot of one of the fairways below with the lake and mountains in the background.

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The altitude here is just under 7,000 feet and as such the climate is warm with only the slightest hint of an early morning chill. Here is the 44 seat restaurant below and the building it’s inside. (The patio can seat a further 100 people).

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This area has a perfect climate around the lake and not surprisingly the lake is a weekend trip destination not just for Ibarra’s inhabitants but also folks from Quito and even further away. Here’s a couple of early morning shots of the lake as I arrived yesterday with the early morning mist just about burned off.

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Laguna Yaguarcocha is also the site for Formula 3 races around a fast circuit and previously the races were run on the road that runs clean around the lake. Paragliding is a popular early morning sport, launch yourself of a nearby hill and glide serenely over the lake just as this guy was doing yesterday morning. Snow capped Cotacachi volcano was easily visible through the trees in the distance this clear morning.

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Here are some shots of the road outside Rancho Totoral and also the entrance to the property and the driveway down to the restaurant and house, one think I like about this property is the mature gardens and tremendous variety of plants and trees.

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Patricia and her daughter in-law relaxing outside the house

The golf course itself is the only one in the country north of Quito. You can go round and round the course all day long for $25. It’s pretty much a pitch and put course although I can assure you that wouldn’t be the case for me! Mind you if I owned this property I’d be out walking this property every morning just as I did with Eduardo yesterday morning.

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Irrigation.

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The bar and kitchen.

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More cabin shots.

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Lake Yahuarcocha.

Here are a couple of shots of the course.

There is wonderful club house.

Lush Gardens

And some charming guest cottages on the first tee. We’ll visit them again next course. Hope you’ll join us there.

There is a race track that wraps around Yaguarcocha Lake.

One wonderful thing about owning Ecuador real estate is that there is just about everything in this area from hot springs, to glorious mountains to great fishing to wild cloud forest preserves to golf to Formula 3 car racing.

Several delegates recently went to the races at lake Yaguarcocha. You can see some shots of the race below.

Start of the Ecuador real estate races at Yaguarcoacha

French participate in Ecuador real estate races at Yaguarcoacha

Winner at Ecuador real estate races at Yaguarcoacha

Last April, 2006 it was announced that Latin America motor sport took a big step forward by introducing the PanAm GP Series races. This is a brand new racing series that makes a significant impact on racing in Central and South America.

This series includes races in Mexico, Guatemala, Costa Rica, Columbia, Venezuela, Ecuador, Panama and the United States at Homestead in Miami. There is extensive TV coverage on the Fox network.

Although Merri and I are not fans, for those that like this type of sport there are many kinds of races from Formula 3 to motor bikes to souped up go carts here that add one more business dimension to this land.

Whether you want real estate in America, Ecuador or anywhere in the world, look for distortions. They offer value that can improve your lifestyle and increase your wealth.

Here are more pictures.

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On our last real estate tour.

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Landscaping and…

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the cabanas from…

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far and…

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Here is

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the entrance and restaurant.

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Contact

EDUARDO VILLALOBOS
RANCHO TOTORAL HOSTERIA & LAGUNA GOLF COURSE
rtotoral@imbanet.net
www.ranchototoralhosteria.com
P.O. BOX 10-01-224  Ibarra
Telefax: (593-06- 2955-544)
Cell:  094805605

Gary

See this property on our real estate tour. Enroll here. .

Attend any two Ecuador courses 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 for two.

Ecuador Banking Notes


Ecuador banking notes from Ecuador subscribers are below.

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This is the Ecuador bank and ATM we use in Cotacachi.

Before we look at these Ecuador banking  notes, you should be aware that non residents cannot open checking accounts at an Ecuador bank.  They can open a savings account.

Visa credit cards work at ATMs operated by Bank of Guayaquil, Pichincha, Produbanco and Banco Pacífico. Each ATM shows the logos of which cards can be used on that machine. We use our regular ATM cash card issued by our Florida bank at this Bank of Pichincha branch (shown above) on Cotacachi’s second smaller plaza.

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The plaza is pristine because it is maintained by the bank.

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The bank is next to the police station and the second smaller Cathedral.

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Here are some Ecuador banking notes sent by subscribers.

You can add recent experience to your banking info that you can write a check on your US account and send it to an Ecuadorian bank for deposit. Normal mail takes about 5 days to Quito. BUT, you can’t make it payable to the bank with instructions to credit your account. Nope. You have to make it payable to yourself and then, get this, endorse the check. You cannot do, as you would in the US, add “Deposit Only to Acct 12345” — So, you are sending an endorsed check through the mail. This means it is just like cash. This is completely different from anything I have ever seen in the banking world.  Then it takes about a month for them to clear the check. Your alternative is to pay about $40 to wire the funds, and the Ecuadorian bank will charge to receive them. Or, you can get a cashier’s check and FedEx.

There are three Cotacachi ATMs. Two are on the main street 10th of August. Here is one of them…the newest of the three.

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We are allowed to take $500 a day from the Pichincha ATM and $300 a day from the others.

Ecuador banking like in every country, has its peculiar glitches including with ATMs. Here is another sent by a reader.

Dear Gary,  I truly enjoy your posts! We have been lucky enough to find Cuenca to be our perfect Ecuadorian home but I did want to pass on a heads up based on your information today about banks in Ecuador…

When using ATM’s and cash cards in Ecuador, make sure you get your cash from a machine that is in, or at the front door of an open bank. As you receive your cash, check it for smooth feeling bills.

Last November we had the disappointing experience of getting 5 counterfeit $20 bills in our ATM withdrawal of $200. We were using an ATM at the “Parque Calderon” in the center of Cuenca, one of the most visited ATM by tourists in the city. Not imagining that there was any risk we pulled our $200 cash out and proceeded to Spanish class. It was there we were told five bills were fakes (all Ecuadorians who work with money are extremely aware of counterfeit bills as they have to cover the loses from their own pay) We were flabbergasted, especially when the woman at the school told us this had happened three times in the last month.

We called the card provider ( a Credit Union in Colorado) and they told us that as it was not in the US, there nothing they could do.

We went to the bank that owned and stocked the machine eight days in a row (each day we were told the person to see would be in the next day) trying to talk to someone who could/would do anything. It was not until we started using the word “Falsos” rather loudly in front of the crowd in the waiting line (usually about 50 people in Ecuador) that we were finally sent to a manager. The manager set us up with another manager who did not show up for our meeting either, and then another who blamed it all on the main office in Guayaquil. Finally we just marched in and went straight to the top, the bank director who kindly spent an hour showing us that the problem could not have ever happened and that the fakes must have been put in when the bills were packaged in Kansas City by the US Federal Reserve.

Knowing that a $100 loss would be devastating to a typical Ecuadorian family where teachers and policemen make $150 a month, we decided to bring charges against the bank, if only to catch their attention.

Needless to say the case is making its way agonizingly slowly through the Ecuadorian Justice system and we don’t ever expect to see our money back, but we can warn others.

-Avoid cash machines not attached to banks.

-Pull your cash out in a very visible place, preferably with the bank guard watching.

-Rub the bills between your thumb and fingers to feel for a different texture (fake bills are smooth like copy paper).

-If you think you feel any difference, immediately take it to the guard or teller and demand new bills.

Ecuador is an amazing place but even and especially the locals trust the banks and bankers about as far as they can throw them. As you say once bitten twice shy.

Here is Cotacachi’s third ATM.

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Jyske ATM Banking in Ecuador

One nifty way to combine global investment management bank and your cash needs in Ecuador is through Copenhagan with Jyske Bank’s VISA debit cards.

This card makes it easy to access cash from your Danish bank account.

Why a Danish bank?  As mentioned earlier I do not trust Ecuador banks. On the other hand Danish banks are among the safest in the world.

First let’s examine safety.  How safe?

In recent years Denmark has been rated by Standard & Poor’s as one of the safest country in the world in which to bank.

Jyske Bank is well established with a history of over 100 years. Jyske is Denmark ’s second largest bank, with 450,000 clients in Denmark and over 30,000 abroad.

Jyske Bank has over 23 billion euros in assets and also happens to be one of the leading currency traders in the world. Many other large banks use Jyske to handle their off hour currency positions. This means that Jyske is huge when it comes to multi currency activity. In fact their turnover reaches $50 billion dollars a day.

Bank Safety Point #1: A recent Yahoo Canada article shows a survey by the World Economic Forum listed five safest countries in which to bank.

Canada
Sweden
Luxembourg
Australia
Denmark

So Denmark is a safe place to bank. Now let’s look at Jyske Bank’s safety rating.

Bank Safety Point #2: On October 10 2008, Moody’s affirmed Jyske Bank’s long-term Aa2 rating. This decision came despite the deteriorated economic prospects in Denmark, particularly in respect of the property market.

Bank Safety Point #3: Also on Friday 10 October 2008, the Danish Parliament passed a bill that secured all deposits and unsecured claims against losses in Danish financial institutions. The rating of the Kingdom of Denmark is Aaa/AAA with Moody’s and Standard & Poor’s respectively.

The people at Jyske are common sense bankers. They had minimal sub prime exposure when that scandal broke. Jyske had zero Madoff exposure.

That’s safe!

How about service?  First of all,  Jyske can manage your wealth. For anyone with $50,000 or more to invest Jyske can buy, sell and hold investments from all over the world, stocks, liquid assets, bonds and commodities. They provide full managed or advisory only services.  They even lend in multiple currencies to leverage investments for investors with $100,000 or more.   Almost no bank in North or Latin America can do this.

Once you have Jyske caring for your wealth, they can then provide a steady stream of cash when you need it…via a global debit card.

Jyske Ecuador & Global Service.

Even US clients who have managed accounts at Jyske Global Asset Management  (JGAM) can have a VISA debit card.

JGAM opens a specific on demand account with Jyske Bank so funds can be made available via the card.

These cards can provide access to cash anywhere in the world…including Ecuador.

Jyske offers three different cards to match different needs.   Each type of card provides considerable flexibility.

US citizens and residents can get more information from Thomas Fischer at Jyske Global Asset Management. Email: fischer@jgam.com

None US should contact Jyske Bank Rene Mathys  at mathys@jbpb.dk

This is good advice for when you are banking in Ecuador that we are happy to share.

Gary

The greatest asset of all is the ability to labor at what you love wherever you live. This brings everlasting wealth.

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.

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We always conduct our autumn North Carolina course n the first weekend of October… the best time to enjoy  the leaf change.

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

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You’ll see views like this on your way to West Jefferson.

Or head south to Ecuador!

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October 16-18 Ecuador Southern coastal tour ONLY THREE SPACES LEFT

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

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In Cotacachi the weather is always Spring like.  Here is our group meeting at the Cotacachi museum next door to our hotel Meson de las Flores.

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

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Let our friendly staff at Meson serve you.

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

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Ecuador winters are shorts weather on the beach as this photo shows.

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

Retire in Ecuador – Beat Inflation


A good reason to retire in Ecuador or away from your home is to beat inflation.

Yesterday’s message looked at reason why inflation is not a problem now… but it will be… probably in a serious way.

See below three ways to beat inflation.

First… live or retire in Ecuador or any country where the cost of living is low.

These nice houses in Cotacachi were offered at $49,000.  That beats inflation when you retire in Ecuador.

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Costs are low. This fixer upper in Cotacachi has an asking price of $30,000 with…

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a huge yard filled with mature fruit trees and…

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this view.

Second, invest in land or commodities.

A long time friend Steve Rosberg whom I first met when he was my banker in Ecuador recently sent me this note as he operates a timber plantation and real estate development in Argentina.

Gary, During our visit to New York two weeks ago, a friend and former colleague from my banker days pointed out that Latin America had been the perfect training ground to succeed in the current investment environment. I agree 100%.

In case there was any doubt, California’s  issuance of IOU’s to settle short term debt was the final confirmation, and was rapidly followed up by other corollary events, such as banks stating that these could not be accepted as deposits. This would be obvious to anybody thinking about it, but apparently, most people weren’t.

Those IOUs are a different ‘currency.’ They are a currency which you will see more of in the future, as the issuer (the CA government) is still running deficit budgets, and no new voluntary lenders are rushing in to fund them.

Decidedly a  scenario familiar to those of us who have been through a number of LatAm crises. If an Argentine president tried to pass those IOU’s off, nobody would be foolish enough to take them in the first place, and the international press would ridicule the plan as another example of LatAm fiscal impropriety.

Meanwhile, the debate seems to rage between “Are we going deeper into recession? Are we going into high inflation? Are we going into stagflation?”

The answer is yes, absolutely!

How do we position our portfolios to make the best of this without taking on more downside risk?

This is the crux of why we have developed our business as we have:

– to have growth even if there is recession (the trees keep growing, the vineyard too),
– to have value even if there is high inflation (timberland, vineyard, hotel, all real, appreciating assets that will both protect the real value of your initial investment from inflation’s erosion and generate cash flows that will also increase in this scenario),
– to have current revenue originating in the sustainable production of real assets,
– to do so in environmentally responsible ways, and
– to enjoy what we are investing in.

In short, what you want now for the long run.

We continue to believe that debt free assets producing real commodities and generating solid returns are the antidote to portfolios stricken by the poor performance of supposedly safe, “mainstream” assets, and will continue to be so going forward.

Yes, we’re from Argentina, that means we’ve been preparing for these markets for decades. Our customers didn’t lose money last year-they made it.

Visit our website and write back for more information, it’s always our pleasure to be in touch with you.

With best wishes, Steve Rosberg  www.ushay.com

Third, invest in commodity based equities.

The excerpt below is from our Multi Currency course and shows why global inflation is a problem.

A recent article in the Economist showed that the US deficit could be three trillion dollars in 2010.   Half of this would come from borrowed funds.  Normally this would cause the US dllar to fall versus other currencies.

A free fall in purchasing power of all currencies is also more likely than in previous recessions (1970s and 1980s), because then, the US overspent but other major governments, especially Germany and Japan, were still conservative and fiscally prudent.

This is no longer true. West Germany unhinged fiscal common sense when it absorbed Eastern Germany.

Excerpts from a May 14, 2009 article in the Financial Times entitled “Germany set to suffer record deficit” by Bertrand Benoit says:

The German government will record its biggest post-war budget deficit this year as the economic crisis sends tax revenues plummeting, Peer Steinbrück, finance minister, said on Thursday.

Mr Steinbrück admitted the federal deficit would exceed €50bn in 2009 and rise to €90bn next year, more than twice the previous record of €40bn set in 1996 as Germany was absorbing the huge cost of its unification. In contrast, the federal deficit last year was only €11.9bn..

Germany and Japan have both been hit especially hard by this recession because their economies have been so dependent on exports and global trade.

Germany has a huge amount of short-time working and its exports have fallen dramatically.  Like almost everywhere, government income is dropping as spending is on the rise.

If the German economy were to continue to shrink at its current pace, it will be a 20% smaller by the end of 2009.

This means Germany remains in default (as does France, Italy and Spain) of the three per cent limit in the EU stability pact.

All eurozone countries, but especially those with larger deficits, such as Italy and Spain, face a similar problem…  rising costs… aging populations… growing pension and health costs while faced with reduced income.

Asia Troubled As Well

This year, Japan suffered its first annual trade deficit in nearly three decades and business has slowed dramatically there. Global demand for Japanese products plummeted in 2008 and exports were down 16% in the year to March 2009 compared to 2008.

Hong Kong’s economy gives a glimpse into China’s economic soul and here business also contracted at the fastest rate since the Asian financial crisis.

The first three months of 2009 had the biggest drop in more than half a century.

The Hong Kong government predicted that GDP would contract by up to 6.5 per cent in 2009.  Total exports dropped 22.7 per cent in the first three months of 2009 compared with the previous year – the biggest drop since 1954. Overall investment fell by 12.6 per cent and private consumption by 5.5 per cent. The unemployment rate also rose to a 38-month high of 5.2 per cent in the first quarter.

Huge Economic Problems

Huge economic problems create huge investment opportunity and one of the greatest problems facing the world is that education has not evolved as fast as democracy.  Too many poorly educated voters expect their government to do more than they can… or should.  The voter’s desires and expectations are ill informed and generally incorrect… yet their vote is as powerful as an educated one.

This forces politicians to act (spend) more than they have.  This tends to create inflation.   This rather predictable fact has become increasingly global so choosing a strong currency becomes increasingly hard.  Most currencies are at risk to inflation.

This is why stocks, commodities, real estate and your own business makes so much sense now.   There is a caveat.  Always invest in good value in these things.

This is why my attention was really captured when I read about the ALTIS Global Resources Fund.

This is a fund that invests in commodity backed equities and is advised by value guru Michael Keppler.

If you are a new reader learn about Keppler Asset management here.

This creates a powerful combination for opportunity.  The figures below support this.

Michael Keppler recent sent me this note:

Gary, Attached please find the latest Fact Sheet and Performance Review (as of April 30, 2009) for the ALTIS Fund Global Resources, a global sector fund we advise, which was featured in an e-fund journal report of May 4, 2009 as one of the “top 10 natural resource equity funds” based on its 5-year Sharpe Ratio calculated by Lipper.

This fund seeks long-term growth of capital by investing primarily in equity securities issued by companies located anywhere in the world with business operations in the energy, natural resources and precious metals sectors.

You can learn more about this share and read this entire multi currency report as a subscriber to our multi currency course.

Economic fundamentals suggest that the price for ending the current recession will be inflation.

Three ways to fight inflation are retire in Ecuador or some other country with a low cost of living or to invest in real estate, commodities or commodity based investments.

Gary

Join us at our North Carolina farm this July or October for our International business & investing seminars below. Learn more about how to fight inflation and retire in Ecuador.

July 24-26 IBEZ North Carolina

Oct. 9-11 IBEZ North Carolina

Or join us in Ecuador and learn more about living and retiring in Ecuador.

July 24-26 IBEZ North Carolina

Oct. 9-11 IBEZ North Carolina

Or join us in Ecuador and learn more about living and retiring in Ecuador.

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 21-24 Ecuador Import Export Tour

Nov. 6-8 IBEZ Ecuador
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Ecuador Iran Excerpt


A number of readers have asked about Ecuador and Iran so here is an excerpt from our latest Ecuador Living report.

Some of the ideas apply to interaction between radicals in all of the Middle East and the West and how they can affect our wealth, business and investing.

The idea that Iran is a great enemy intent on attacking us is great for selling news, but a bad leader or two does not reflect the entire population.  Many of us in the US did not agree with some of the leaders our the last administration.

IF  Iran is to become more involved in the West and that’s a very big IF, I do not see it being any great deal. The only risk Iran poses is if many people give them a lot more concern then they deserve… as certain leaders in the West gave Saddam Hussein.

I do not claim in any way to be a great global military strategist but that thinking has some support from the thinking of other  who I do think are good at strategic global thought such as… Lee Kwan Yew.

I worked and spent a lot of time in Singapore during the late 1960s and early 1970s so I recall vividly the way Singapore used to be.

Lee Kwan Yew had a lot to do with Singapore emerging from a form of colonialism that included a lot of poverty to one of the wealthiest societies in the world.

This means it is fitting to read some of Lee Kwan Yew’s thinking that could apply to Ecuador and Iran now.

Lee Kuan Yew outlines the risks of relying on the local press succinctly in a 2007 interview with  UPI’s editor at large, Arnaud de Borchgrave.

Q: So what is your recommendation about Iran’s nuclear ambitions?

A: Is it now unstoppable. They are a very old civilization. Unlike the Arabs, apart from Mesopotamia valley, they rank with the Chinese, as history’s two principal civilizations worth talking about. And I think the mullahs and others want to go back to the days of empire.

Q: So should we be talking to them at the highest level, the way Henry Kissinger went to China?

A: (Chuckle) But you haven’t got a Kissinger or a Brzezinski to do that anymore. Where is the successor generation of geopoliticians?

Q: In fact, democracies don’t produce great statesmen anymore. Why?

A: You now have, and I don’t know how long this phase will last, mass media domination, owned by a group of media barons who want constant change for their balance sheets.

Q: So the power of mass media has made it impossible for a great statesman or woman to emerge and last any length of time?

A: I’m not sure. It depends on the nature of the crisis that must be faced. When a real crisis sets in, a matter of life and death, opinion formulators realize this is no time to be pontificating, but a time to stay the course with someone who understands what this is all about.   Short of that, the media help put a leader on the pedestal and then start chopping away at the pedestal until he/she falls in disgrace. That’s part of the cycle of constant change. Watch Sarkozy in France. They hoisted him up to prominence and now they’re already attempting to bring him down through his personal life.  Well, yes. But it’s also the enormous pressure of media competition and the giant appetite for advertising revenue, what television program gets what viewership, or eyeballs, or clicks online. Never mind the consequences. If you get the advertising, you win.

Q: When I last interviewed you in May 2001, I asked you what concerned you most about the next 10 years, and you replied, “an Islamist bomb, and mark my words, it will travel.” Four months later, we had Sept. 11. Secondly you said, “China and India’s challenge to the global status quo.” Do you still have the same concerns about the next 10 years?

A: Not quite. The Islamic bomb has traveled already (in Iran). I’m not sure how this will now play out. The U.S., the Europeans, even the Russians, will have to make up their minds whether to allow Iran to go nuclear. The Russians are playing a game, posing as the nice guys with Iran, supplying nuclear fuel, and making it look as if America is causing all this trouble. But if I were Russia today, I would be very worried about Iran acquiring the bomb, because Russia is more at risk than America. The risk Israel runs is another dimension. Russia is at risk because whether it’s the Chechens or Central Asian Muslim states that were former Soviet republics, none are friendly to Moscow. Next time there’s an explosion in Moscow, it may be a suicide bomber who isn’t wearing an explosive belt or jacket, but something a lot bigger. It would certainly be in Russia’s interest to say at some future point to Iran, “this far and no further.” It could also be that Russia no longer knows how to stop it, in which case the Russians will be opening the door to a very dangerous world of nuclear proliferation. You can be quite sure that if and when Iran gets the bomb, the Middle East will go nuclear.

Q: Which raises the question of the United States or Israel bombing Iran’s nuclear facilities.

A: (long silent pause) … I can express no views on that.

Q: As I travel in moderate Muslim states in North Africa, the Middle East and South Asia, I ask heads of state and government how many extremists, or would-be jihadis, they estimate live in their midst, also how many fundamentalists who support openly or secretly the jihadi cause. The answer is usually 1 percent and 10 percent. In a country like Pakistan, that translates to 1.6 million extremists and 16 million supporters. On a global scale, that comes out to roughly 14 million extremists and 140 million sympathizers.

A: Yes, but I do not see them winning, and by that I mean able to impose their extremist system. I can see them inducing fear and insecurity, and causing fear, but they don’t have the technology and the organization to overwhelm any government.

Q: So how do you assess the global threat since Sept. 11? What are we doing that’s right and also that’s wrong?

A: Even if we can’t win, we mustn’t lose or tire. We cannot allow them to believe they have a winning strategy, and that more suicide bombers and WMD will advance their cause and give them a chance to take over.

Q: Did Iraq have anything to do with al-Qaida?

A: Of course not, as became clear in the daily sessions the imprisoned Saddam spent with his Arabic-speaking FBI interrogator over several months before his execution. But U.S. authorities were convinced Saddam was secretly supporting al-Qaida with weapons and training and maybe even WMD. So therefore the imperative became the elimination of Saddam.

A: (Laughs for several seconds) We should learn to live with it for a long time. My fear is Pakistan may well get worse. What is the choice? (President) Musharraf is the only general I know who is totally secular in his approach. But he’s got to maneuver between his extremists who are sympathetic to Taliban and al-Qaida and moderate elements with a Western outlook. We forget that right after Sept. 11 he was given a stark choice by President Bush: either you abandon your support of the Taliban regime in Afghanistan or face the disintegration of Pakistan. There is an interesting study of Pakistan’s Inter-Services Intelligence agency that says 20 percent of the Pakistani army’s officer corps is fundamentalist.

A: There is very little, if anything, the U.S. can do to influence the course of events in Pakistan that wouldn’t make matters worse. Any U.S. interference in Pakistan would result in Pakistan’s four provinces becoming four failed states. And then what happens to Pakistan’s nuclear arsenal? It’s a horrendous festering problem. The Feb. 18 elections may bring a little clarity and hopefully democratic stability to Pakistan, but I am not holding my breath.

Q: So you do feel that NATO’s future is at stake in Afghanistan?

A: No doubt about it. But you should also realize Afghanistan cannot succeed as a democracy. You attempted too much. Let the warlords sort it out in such a way you don’t try to build a new state. The British tried it and failed. Just make clear if they commit aggression again and offer safe haven to Taliban, they will be punished.

Q: If NATO collapsed in the wake of a failed campaign in Afghanistan, would that be a major concern of yours in Singapore?

A: Not immediately, but overall the balance of power would be upset.

Q: In whose favor?

A: China and Russia. They would be faced with a much weakened West in the ongoing global contest. I can also see the danger if America loses heart and says to hell with it all because the Europeans are not helping and the Japanese are blocking this and that, and tokenism from all the others. Let’s not forget that what we’re all enjoying today is the result of Pax Britannica and Pax America over the past 100 years. So don’t give it up.

Q: But in the Gulf, if the U.S. and/or Israel bombed Iran’s nuclear facilities, Iran has formidable asymmetrical retaliatory capabilities?

A: But let me repeat, they cannot conquer you. Hezbollah cannot conquer Lebanon. They can create trouble for the non-Hezbollah Lebanese. So micro actors can cause a lot of trouble for your friends, but they can’t eradicate them.

You can read this entire report as an Ecuador Living subscriber and see why if there were to be a military concern in Latin America it would be over China…not Iran..

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There were two articles readers have recently mentioned.

The first article began, QUITO – Iran will finance two new power plants in Ecuador and extend a 40-million-dollar loan for business development, officials from both countries said Thursday, three months after the first visit by an Ecuadoran president to Tehran.

The second:  Iran, Ecuador Eye Military Ties As U.S. Prepares to Withdraw from Airbase Friday, May 29, 2009, by Patrick Goodenough, (CNSNews.com) – As the United States military prepares to vacate an airbase in Ecuador in the fall, the leftist government responsible for its upcoming departure is looking to Iran as a future military partner.

While I do not feel that nuclear power or expanded military might are good things, I do believe completely in the global economy and in expanding the wealth of all.

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trout pond.

One can argue about all the numerous conflicts in the world but if we boil it down to the few most important, one of the biggest tensions in today’s society is that there are a few very wealthy people and many, many poor.

For decades my premise for economic expansion has been based in part on the belief that most people, if given a choice, will spend their time doing positive things, like working at something they love for increased material wealth and great fulfillment rather than living a guerilla’s life.  A poor soldier’s living conditions are  generally not pleasant… the pay low… the risk extreme.  That life, however, is better than one of complete hopelessness and despair.

If Ecuador Iran cooperation can help make more poor Ecuadorians and Iranians rise out of poverty… I say…”go for it!”

There are many potential and huge benefits to be gained by bringing Iranian business to the West. Maybe Iran being closer to the West will help it integrate?  Current events in Iran suggest that many of the population would be happy to do so.

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I have had an opportunity to observe Correa and the people of Ecuador react for a couple of years now.  At times I have been quite close… such as when I took this photo.

Ecuador-photos

Correa is in a strong political situation at this time. One thing that could destroy his popularity quickly would be the perception in this 90% Catholic country that he is introducing Islamic radicalism.  Therefore Correa may line up with Iran for some money… and to gain leverage in his dealings with the West… but a major integration would surprise me very much.   One bombing in an American hotel in Quito or Guayaquil and Correa’s popularity would be toast.

There have been worries about his friendship with Chavez. There are these worries of Correa with Iran. There have been worries about South America pulling away from the US dollar.

Yet so far none of these fears have affected life, happiness, opportunity, real estate values or  law and order in Ecuador.

In short anyone who never heard of or ignored all these fears and moved optimistically forward is better of than those who did not.

Most of the press are writing about the world sliding into recession. Many articles in the Western press make it sound like there’s little opportunity and great danger everywhere.

Good. Their doom and gloom creates positive global investing opportunity for those of us who can see through the illusion.

ecuador-iran

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Regards,

Gary

We hope you’ll join us to learn more business and investing opportunities globally as well as Ecuador.

July 4-8 Ecuador Export Tour

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July 24-26 IBEZ North Carolina

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Ecuador Wills


Ecuador wills do not work if challenged.

We’ll look at some important information about Ecuador wills and Ecuador’s legal system in a moment.

Plus see below how asset protection benefits in the LLC you use may have changed.

Here is a group of indigenous farmers that our foundation Land of the Sun (LOTS) is helping.  They created a mingo (working circle) to clean out their water system that feeds a school that LOTS is helping to renovate.  Merri and I and some friends visited to check on their progress.

Ecuador-wills

Everyone works, men…

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women…

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young…

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and old.

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Well… not everyone works.

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But everyone gets involved in helping. Here is our hotel manager Franklin Sandoval conferring with the head of the village.

Ecuador-wills

I mentioned our foundation here  because it helps us gained fulfillment in our business, plus creates tax and asset protection benefits plus is part of our estate planning to make sure that the people of Ecuador are helped even after we pass.

Making sure that your assets held abroad are protected and properly conveyed in your estate requires extra planning.

Yet many Ecuador Living subscribers have been buying real estate or are moving to Ecuador without giving thought to the added complexity in their estate plans and other legal requirements.

I strongly suggest that you review you entire estate with both a local and Ecuadorian attorney. Here are some excerpts from an Ecuador Living report on why.

The Western world operates on two systems of law, the civil law of ancient Rome, and the common law of England.  These two systems have a lot in common, yet in many important areas they differ.

These differences can create legal conflicts in contracts, wills, trusts, parental rights and even residency.

The passing of wealth to heirs for example is one area that differs.

Few people coming from North America (which operates under a British common Law system), understand that US, Canadian or Ecuador wills do not work in Ecuador if challenged.

Many legal systems have evolved from The Roman civil code.  The Napoleonic Code is the French version, established under Napoléon I in 1804.  The Napoleonic code was not the first legal code to be established in a European country with a civil legal system though. The Codex Maximilianeus bavaricus civilis was reated in Bavaria arund 1756).  The Allgemeines Landrecht formed in Prussia, around 1794.  The West Galician Code,  began in part of Austria around 1797.

Many of the civil codes in Latin America are based on an original work derived from the French code and Castillan law.  Chile was the first to accept this type of legal system in 1855.  Ecuador followed in 1858.  El Salvador,  Venezuela,  Nicaragua, Honduras, Colombia and Panama are other countries with a legal system based on this foundation.

In this Ecuador legal system, the will is called the testament and allows the testor to direct the disposal, in whole or in part, of their property, upon death.   The testor retains the right to revoke the provisions in the testament anytime during his or her life.

However there is a difference in common and civil law as to what is a person’s property is.   In most civil codes, the wife automatically owns half of all property unless otherwise  stipulated in a formal way. The children own the other half.  Period. A will cannot supersede this fact.

If a person’s will leaves all of his or her property to his or her spouse, the will works fine UNLESS the children contest the will. If they do the testament will not be valid.

This can create complications in simple circumstances.  If the circumstances become complicated… for example children from two or more marriages… then problems could mount.  There is even a concern in my mind that a surviving spouse could lose investor residency status if the inheritance falls below required minimums.    A spouse could lose residency and a house!

In a common law country a person can write a will on a scrap of paper, throw it in a drawer (not advised) and that may be enough.  Though it also might not.  In a civil code jurisdiction such a will definitely will not work!

So if you create a will in Ecuador and then write another later… be sure to make the change official. Otherwise the new will may not work.

In a common law legal system wills do not have to be recorded and often the act of writing a new will allows the new document to supersede the old.

Ecuador’s Act reforming the Civil Code, of August 17, 1989 updated a number of areas relating to  covers relationships between a children and their parents, marriage, divorce, the status of wives, marital property and marital agreements.

Having an attorney to help you with estate planning in every country where you hold property makes sense…  especially if  two of the countries have different legal systems.

The US attorney we use is our friend (and trustee of LOTS) Joe Cox.

Joe’s firms specializes in cross border tax and estate planning, asset protection and real estate.

He provides an incredible system called The Strategic Snapshot which is an easy to use, color coded visualization of a person’s structures, corporate entities, estate plan and assets. We use the snap shot and have found it incredibly useful in seeing how everything from a legal point of view should fit.

You can ask Joe about the Strategic Snapshot at  jcox@coxnici.com.

Joe’s law firm also provides an excellent estate planning newsletter that I read regularly.

A recent letter at his archive shows how and says:

Conversion to Manager-Managed LLC Format

Many individuals concerned with asset protection have formed a Limited Liability Company (“LLC”) in an effort to protect their assets. In fact, most people do not know that Florida was the second state in the United States to draft LLC legislation (dating back to 1982). Most LLCs we see in our daily practice have been formed as member-managed LLCs, that is, when the members (i.e., owners) of the LLC control and manage the LLC as well. However, due to recent changes in the law regarding LLCs, we are now recommending that any Member-Managed LLC be converted into a Manager-Managed LLC format.

The intent of this recommendation is to increase the creditor protection of the LLC should the Member be involved in a lawsuit.

For example; under a Member-Managed LLC, if a creditor of the Member is able to obtain the LLC membership units (by court order, for example), the creditor could obtain management rights and make decisions for the LLC. At least one recent court ruling (from Colorado) makes this result a possibility. However, under a Manager-Managed LLC format, the Manager retains control of the management of the assets held by the LLC even if someone else “controlled” the LLC membership units.

In a Manager-Managed LLC, an elected Manager (pursuant to the Operating Agreement) manages the LLC. Note, that an existing member can act as the initial Manager of the LLC, and an independent Manager can be elected at a later time, if desired. Under a Manager-Managed LLC format, if a member was successfully sued, and the creditor obtained the member’s LLC membership units, the Manager could withhold distributions from all Members and the creditor would receive nothing. This result could deter a potential creditor from filing an unjustified or otherwise frivolous claim.


Plus Joe’s website offers an easy to use internet questionaire. See Questionaire.

We live in a complicated world often made more frustrating by the legal system.  Legal systems are problematic enough when one lives and resides in one country.   Difficulties can compound when living and or holding assets in two countries or more… especially if both legal systems…common and civil become involved.  So get an attorney and get advice so you, your spouse and your heirs never find your results uncivil.

The text above is an excerpt from a more complete report sent to Ecuador Living subscribers that describes Ecuador legal system, how to create wills there and provides legal contacts in the US, Canada and Ecuador that can help.

Learn how to subscribe here.

Regards,

Gary

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See our full 2009 schedule here.

May 29-31  JGAM Multi Currency investment Seminar Naples Florida

June 12-14 Shamanic Mingo Tour
June 16-17 Imbabura Real Estate Tour
June 18-21 Ecuador Coastal Real Estate Tour

July 3-6 Ecuador Import Export Expedition
July 8-9 Imbabura Real Estate Tour
July 10-13 Ecuador Coastal Real Estate Tour

July 24-26 IBEZ North Carolina

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 9-11 IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

Nov. 6-8 IBEZ Ecuador
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour