Tag Archive | "Rene Mathys"

Ecuador Fares & Legal Tips


Here are some Ecuador fares & two legal tips learned from living and doing business abroad for 41 + years.

First, the facts on fares.

Ecuador air fare fact #1: Ecuador air fares are really low again. Ecuador air fares from Quito to Miami seem to rise and fall from under $400 to over $500. Right now LAN is offering the very low rate of $398.  Here is this low cost Miami-Quito air fare that LAN sent to Merri.

Ecuador-Air-Fare

Ecuador air fare fact #2. Ecuador is easy to reach.  The flight from Miami is about 3 hours and 45 minutes. There are direct flight from Miami on American, LAN and Aerogal… Atlanta (Delta) and… Houston (Continental).

Merri and I fly from Atlanta and it takes less time and costs less than our frequent flight to Portland, Oregon.

Ecuador fact #3. Ecuador is a great place to escape the cold weather at this time of year.  See Ecuador weather comparisons here.

You can look up fares at www.kayak.com and www.farecompare.com

See a two part report on getting Tickets to Ecuador here.

Ecuador is…

Ecuador-scenery

a beautiful place from mountains to…

Ecuador-scenery

sea with hidden…

Ecuador-scenery

charms like this thermal spa near our hotel in Cotacachi.

The people are…

Ecuador-scenery

friendly and…

Ecuador-scenery

wonderful from many…

Ecuador-scenery

cultures.

Yet Ecuador like all places also has its ways.

I began thinking about this when numerous readers wrote to me asking for an opinion about the arrest in Ecuador and extradition to the US of  an American naturopath who has been living in Ecuador.  Several newsletters and blogs have featured an article stating that this naturopath was kidnapped by the FDA.

I do not know the naturopath nor have I read anything else about this in the news so I contacted a friend who is an attorney and who has been involved in improving Ecuador’s law enforcement system.

The reply was:  Good morning Gary. I could not find any information about this in Ecuadorian newspapers. I will contact the chief of the police in Cuenca to learn firsthand the facts about this.  Warm regards.

I’ll report as soon as I hear more.

There are several issues readers asked.

The first issue about this arrest seems to be claims that the FDA committed a number of illegal acts in this process.   Readers have expressed shock about this.

They should not be surprised.

There have been crimes committed for years.  Our newsletters have focused on this a bit well before we started our website in the 1990s.  So this should not come as any great surprise.

Did this corruption begin in the 1980s?

I recall writing in the 1980s or 1990s about a report on IRS abuses.  That report outlined how the IRS hired a prostitute to distract a foreign banker in Miami. While the banker was busy with the woman, the IRS ignored normal procedure and helped themselves to a briefcase full of banking records.

We do not have to look far to see illegal actions.  A www.cnn.com article entitled “a 1998 Senate Panel Hears Stories Of Alleged IRS Abuses” says:  WASHINGTON (AllPolitics, April 28) — The Internal Revenue Service was once again under fire on Capitol Hill Tuesday, as a Senate committee launched another round of hearings, this time focusing on alleged abuses of power inside the tax agency.
In the first of four days of testimony from taxpayers and agents, the Senate Finance Committee heard instances of the IRS stepping over the line, including stories of retaliation against whistle blowers and raids on taxpayers’ homes that may not have been justified.

Some of the harshest criticism was aimed at the agency’s criminal investigation division, as witnesses complained that the investigators used excessive techniques and were out of control.

A New York Times article entitled “DIRECTOR OF I.R.S. ISSUES AN APOLOGY FOR AGENT ABUSES” says:  WASHINGTON, Sept. 25— The acting commissioner of the Internal Revenue Service issued an extraordinary public apology today to four individual taxpayers — and, by extension, to all American taxpayers — for severe mistreatment at the hands of agency officials. The tax official, Michael P. Dolan, also promised immediate changes to eliminate incentives for misconduct and make the I.R.S. more responsive to public complaints.

At the conclusion of three days of hearings on I.R.S. abuses before the Senate Finance Committee, Mr. Dolan said that he was deeply troubled by the charges leveled against the tax agency this week by taxpayers, current and former I.R.S. officials, and outside watchdogs.
Today’s session featured testimony from five current I.R.S. agents and one former agent, their identities concealed by fabric-covered screens and their voices electronically altered. Their testimony included the following accusations:

*Agency workers browse through tax returns to snoop into the finances of celebrities, relatives and prospective dates.

*I.R.S. agents are judged by their total tax collections, no matter how poorly documented.

*Managers cover up abusive behavior by collection agents.

*Revenue officers consider all tax debtors ”crooks or flakes” who deserve no sympathy.

Earlier in the week, in emotional testimony from four taxpayers, the panel heard from a retired priest who was wrongly assessed $18,000 in taxes from his mother’s estate and from a California woman who went through a 17-year nightmare with the agency that arose from a mix-up over her husband’s identity.

The hearings were the first formal oversight of the tax agency conducted by the Finance Committee, which has nominal supervisory authority over the I.R.S.

Mr. Dolan said that the agency had programs to prevent harassment of taxpayers and abusive collection efforts, but acknowledged that in the cases presented to the Senate, and perhaps in many others, internal controls had broken down.

”While each case was different, the end result is indisputable: We were wrong in the way that we handled many aspects of their cases,” Mr. Dolan said beneath bright television lights in the cavernous Finance Committee hearing room. ”I fully appreciate that an apology is little consolation when it comes at the end of the stress and obvious frustration these men and women have experienced. Nevertheless, I do apologize to each of them. They deserved far better treatment from the I.R.S. than they received.”

Did this corruption begin in the 1970s with Watergate perhaps?

Nah.  Harry Truman, considered by some to be the best US President was stained by corruption charges that lead to the firing or resignation of 166 lower level Federal employees in 1950.

In fact if we look back, we can see corruption and abuse of power clear back almost to the beginning of the US.  In 1831, Robert Potter a Congressman from my other state North Carolina had to resign from office  after castrating two men.  Ouch.

It seems that there are good and bad people in every organization…. public and private.   Governments probably have corruption and abuse of power at about the same level as private companies and other types of organizations do.

We have seen people in the US government start wars based on false information. We have seen them condone torture. We have seen them put people in illegal, hidden prisons… so why would anything be a surprise?

The second issues is that purportedly a corrupt Ecuadorian police we involved as well… and American Airlines as well.

I cannot comment except to say… we are digging for the facts which leads me to two legal tips about living and doing business abroad.

Legal Tip #1: Do not move from one country to another and feel that being beyond the borders of your previous home will provide you with special protection.

All organizations, governmental and not, have some corruption and abuse power.  This is human nature. Expect it and be careful of it.

We live in a global economy that is growing more closely linked all the time.  The long arm of the law can extend beyond borders.

A Time magazine article entitled “Can Swiss Banks Thrive After the UBS-U.S. Deal?” by Helena Bachmann outlines how much pressure US authorities can place on governments abroad.

An excerpt says: After months of behind-the-scenes wrangling that threatened to strain relations between Switzerland and the U.S., the fate of secret Swiss bank accounts reportedly holding billions of dollars in undeclared assets is finally resolved.Under an agreement announced by Swiss and U.S. authorities on Aug. 19, Switzerland’s second largest bank, UBS, will disclose the names of approximately 4,450 American account holders suspected by the IRS of evading taxes. In return, the U.S. Justice Department will withdraw its lawsuit against the banking giant and stop demanding the names of 52,000 Americans accused of hiding assets in offshore accounts.

US officials are not the only ones who abuse power and break laws.  A BBC article “Liechtenstein fury at German tax snoop” by Steven Rosenberg explains how German tax authorities bribed a businessman for bank records.

Here is an excerpt:  Germany has launched a tax evasion investigation using the data, which was supplied by an anonymous informant who was reportedly paid 5m euros (£3.75m; $7.3m).  It was a former LGT employee who stole data relating to German businessmen in Liechtenstein.
It is thought this could be the same information that was bought up by the German secret service.

Germany went on to sell this data to all tax authorities in Europe and I was delighted when the Danish government turned the data down saying they refused to use information that had been illegally obtained.  This is one reason I use Jyske Bank as my main international banker.

Americans can learn more about Jyske’s services from Thomas Fischer at fischer@jgam.com

Non Americans should write Rene Mathys at mathys@jbpb.dk

Here is tip legal #2 for living abroad. The reverse is also true. If you move to another country do not expect your citizenship to protect you if you fall afoul local law.  Do not ignore local laws.

Some recent events remind us of this.   A U.S. student recently convicted of murder in Italy found little help from being an American.

US citizens are not the only who have discovered this sad fact.    Schapelle Leigh Corby, a 27 year old Australian woman traveling to Bali. Indonesia was arrested in 2004, at the airport after 4.2 kilograms of marijuana was found in her boogie-board bag.  She was convicted of importing a group 1 narcotic and sentenced to serve 20 years in jail.  All legal and judicial appeals have been exhausted.

About the same time Singapore executed a 25 year old Australian for drug smuggling despite repeated requests for clemency.

Laws in a new country you visit or move to may seem stupid.. exaggerated… or ignorant… but do not break them. For example Ecuador is very harsh on drugs and child molestation.  Ecuador is one of the few countries I know that inspects for drugs when you come in and depart from the country. If you visit Ecuador, do not ignore this fact!

Every country has its customs, rules, regulations and foibles… in life… in law… in business.

One reader recently sent me this note.

Gary, I am interested in exploring the possibilities of Ecuador , but this seems like  a lot of money to pay for the privilege of letting people try to sell me something.  Seems like they should pay to be in the seminar.  At first I thought it must include the room, but that’s not the case either. What am I missing?

Here is my reply:  You are missing the fact that we do not sell real estate, do not allow our staff to accept commissions on the sale of real estate and have been buying our own real estate and doing business in Ecuador for 14 years.

We ask those whose property we show on the tour to give discounts to our delegates (as we are known to bring many buyers and do not charge commissions). We make sure that sellers show up.  (A bad habit Ecuadorians have is often to not have the property open on time.)

We avoid showing property that in our experience is out of line price wise or quality wise.

We provide efficiency. There are few road signs in Ecuador… no organized brokers… no multiple listings… not many English speaking.  We
plan routes so our delegates can see the most in the shortest time and have English speaking staff with the tours.

We provide contacts with brokers, attorneys architects etc who have shown to be trustworthy.

We share 41 years of experience investing globally and 14 years in Ecuador.

Otherwise chances are you’ll drive around… be lost… see little…  and have no basis on which to compare and when and if you plan to buy
not know if the people you are dealing with are trustworthy.

We feel that our $499 fee is a bargain.  If you hire a car with driver for four days… you’ll have spent almost as much just on transportation.  Regards,  Gary

Our Ecuador real estate tours help you learn the ropes in Ecuador.  We also provide a very personal service that helps you save money and makes your trip to Ecuador more comfortable and secure.   One delegate on a recent tour sent this note.

Merri,  I don’t know how you and Gary give such great individual attention, but I sure appreciate it.  Preparing myself for this trip and the even greater spector of preparing for a life outside the US does not come without a bit of anxiety.  I am so thankful for yours and Gary’s kindness, attention to detail, and responsiveness.  It makes it all seem a little more manageable!  I’ll plan on spending at least the first 2 nights at the Radisson unless we are day two out of Quito.  I will verify my flight with Bonnie.  Thanks again Merri.  Jim

We hope to help you in Ecuador soon.

Gary

Join us on Ecuador’s coast this winter.   Attend our seminars and tours in Florida and Ecuador. 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.

We just added four South coast Ecuador tours that can help you gain extra savings with a multi tour pack.

These extra tours create a dilemma for me. See how below.

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

These four new south coast tours and our six pack tour price create a bit of a crisis here.

As you can see above a six pack costs $3,099.  This is already a really low price for a tour that last up to 21 days (under $150 a day).

But as you will see below, our International Club membership which allows you and a guest to attend up to 56 courses and tours in 2010  (fees would be $40,947 for all these courses individually) is only $2,999.

Which would you choose… 6 courses and tours for $3,099 or those same 6 courses and tours plus 50 more for $2,999?

“Duh,” I said when this was pointed out to me.

So our only solution is to raise the International Club membership to $3,500… still a terrific deal… but $501 more than before.

Save $37,457…plus $501.  I will not raise the International club fee until January 2010. Enroll in the International Club now at the original fee of $2,999.

International Club 2010

Attend our 56 investment, business, Spanish, real estate and export, courses and tours in 2010 with one small enrollment fee.

International Club 2010 Membership Enroll here

Here are the 56 courses and tours you can attend free. Plus there is even one more savings you will see below.

Jan.   8-11     Ecuador Export Tour
Jan. 13-14     Imbabura Real Estate Tour
Jan. 15-18     Coastal Real Estate Tour
Jan. 19-20    Quito-Mindo Real Estate Tour
Jan. 21-23    Cuenca Real Estate Tour

Join us in February or March.

Feb. 11-14   Quantum Wealth Florida -International Investing & Internet Business, Mt. Dora, Fl.

Feb. 15-16   Travel to and visit Quito
Feb  17         Travel to Manta
Feb. 18-19   Coastal Real Estate Tour
Feb. 20        Travel to Cotacachi
Feb. 21-22   Imbabura Real Estate Tour
Feb. 23-24  Quito-Mindo Real Estate Tour
Feb. 26-27  Cuenca Real Estate Tour

Mar. 11-14     Super Thinking + Spanish Course, Mt. Dora, Fl.
Mar. 15-16    Travel to Quito and Andes
Mar. 17-18     Imbabura Real Estate Tour
Mar. 19-20    Cotacachi Shamanic tour
Mar. 22-23    Coastal Real Estate Tour
Mar. 25-26    Cuenca Real Estate Tour
Mar. 28-29   South Coast Real Estate Tour

Apr. 12-15   Ecuador Export Tour ($499 or couple $749)
Apr. 17-18   Imbabura Real Estate Tour ($499 or couple $749)
Apr. 20-21  Coastal Real Estate Tour ($499 or couple $749)
Apr. 23-24  Quito-Mindo Real Estate Tour ($499 or couple $749)
Apr. 26-27  Cuenca Real Estate Tour ($499 or couple $749)

May  13-14     Ecuador Shamanic Minga  ($499 or couple $749)
May  16-17    Imbabura Real Estate Tour  ($499 or couple $749)
May  19-20    Coastal Real Estate Tour ($499 or couple $749)
May  22-23    Quito-Mindo Real Estate Tour  ($499 or couple $749)
May  25-26    Cuenca Real Estate Tour  ($499 or couple $749)
May  28-29    South Coast real Estate Tour ($499 or couple $749)

June 24         Quantum Wealth North Carolina
June 25-27    International Investing and Business North Carolina  ( $749 or couple $999)
June 28-29   Travel to Ecuador and Andes
June 30-Jy 1 Imbabura Real Estate Tour  ($499 or couple $749)
July 3-4          Coastal Real Estate Tour   ($499 or couple $749)
July 6-7          Quito-Mindo Real Estate Tour    ($499 or couple $749)
July 9-10        Cuenca Real Estate Tour   ($499 or couple $749)

Sept.   3-6      Ecuador Export Tour  ($499 or couple $749)
Sept.   8-9      Imbabura Real Estate Tour  ($499 or couple $749)
Sept. 11-12     Coastal Real Estate Tour   ($499 or couple $749)
Sept. 14-15     Cuenca Real Estate Tour    ($499 or couple $749)
Sept. 17-18     Ecuador Shamanic Minga  ($499 or couple $749)
Sept 20-21      South Coast Real Estate tour ($499 or couple $749)

Oct.    7          Quantum Wealth North Carolina
Oct.   8-10     International Investing & Business North Carolina ($749 or couple $999)
Oct.   11-12    Travel to Quito and Andes
Oct.  13-14     Imbabura Real Estate Tour ($499 or couple $749)
Oct.  16-17     Coastal Real Estate Tour ($499 or couple $749)
Oct.  19-20    Quito-Mindo Real Estate Tour ($499 or couple $749)
Oct. 22-23     Cuenca Real Estate Tour ($499 or couple $749)

Nov.    4-7        Super Thinking + Spanish Course Florida ($749 or couple $999)
Nov.    8-9       Travel to Quito and Andes
Nov. 10-11       Imbabura Real Estate Tour ($499 or couple $749)
Nov. 13-14      Coastal Real Estate Tour ($499 or couple $749)
Nov. 16-17      Quito-Mindo Real Estate  ($499 or couple $749)
Nov. 19-20     Cuenca Real Estate Tour ($499 or couple $749)
Nov  22-23      South Coast Real Estate Tour (($499 or couple $749)

Dec.   3-5       Ecuador Shamanic Mingo  ($499 or couple $749)
Dec.   7-8       Imbabura Real Estate Tour ($499 or couple $749)
Dec.  10-11    Coastal Real Estate Tour ($499 or couple $749)
Dec. 13-14     Quito-Mindo Real Estate Tour ($499 or couple $749)
Dec. 16-17      Cuenca Real Estate Tour ($499 or couple $749)

If you join the International Club, the entrance fee for 2010 is $2,999 (until January 2010).  Your attendance fees at all courses will be waived. You and your guest can attend courses worth $40,947.

You can calculate the savings as our schedule of all 2010 courses is shown below.

Arrival dates are always one or two days earlier. Please double check with us before booking flights.

I invite you to be a member of the International Club which allows you and your guest of your choice to attend all of these courses which are valued at $40,947!

International Club 2010 Membership Enroll here

You may well wonder why I would make such an offer and ask why the cost is so low? Let me answer this question frankly and from the heart.

First, it helps us do a better job for you. We feel greatly enriched when we can really help our clients improve their lives. We have learned through years of experience the best way to do this is to meet with you regularly. We can best help you learn how to improve your health and wealth through continual expansion of knowledge.

Second, we gain enormous fulfillment from the many friendships we form through the years. Our friends have enriched our lives tremendously. Let me explain this in more detail.

As a member, you will be part of our international family that meets intensively over the next year to examine ways we can make our lives better. Our goal is beyond just having money. Our goal is to have quantum wealth… good health… wealth and fulfillment through service.

Though I give all course delegates my very best, I cannot help but to do a better job for those who come again and again. As we meet often; your particular wants, needs and desires become clear, and it is easier for me to point you in the right direction.

Another phenomenon is that repeat delegates help each other! They get to know one another, help each other learn, share their insights, make contacts and gain more wealth.

Out associates in Ecuador, are experienced business people who live or work and conduct our real estate and export courses.  They can also act as your local backup for the business.

Lifestyle for Two. There is more! I have learned at my courses that many repeat delegates were couples.

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

Won’t you join us in this exciting club and share Merri’s and my lifestyle for the next year? We look forward to seeing you at as many courses as possible and sharing this wonderful world of abundance and well being with you!

Gary

International Club 2010 Membership  Enroll here

Read the articles:

DIRECTOR OF I.R.S. ISSUES AN APOLOGY FOR AGENT ABUSES

A 1998 Senate Panel Hears Stories Of Alleged IRS Abuses

Can Swiss Banks Thrive After the UBS-U.S. Deal?

Liechtenstein fury at German tax snoop

U.S. Student Knox Convicted Of Murder In Italy

Global Investment Advantage


The big advantage to global investments is that the sun always shines somewhere.

ecuador-opportunity

Follow the sun… and the opportunity… like this (a Galapagos Ecuador sunset actually).  There is opportunity here.  See why below.

Ecuador real estate offers great opportunity, but lets expand our investing view globally… then we’ll see more Ecuador real estate.

Recently, on the anniversary of the bankruptcy of Lehman Brothers, Ben Bernanke said that the US recession is probably over but the economy will remain weak for some time due to unemployment.

He said, “From a technical perspective, the recession is very likely over,”  He said the consensus is the economy is growing yet added that the economy would still feel “very weak” to Americans concerned about job security.   The stock market was not impressed and Wall Street fell  lower.

According to Jyske Global Asset Management, (JGAM) retail sales jumped 2.7% in August, the fastest rise in more than 3 years, but much of the spending came from the “cash for clunkers” boost and “back to school” month related sales. They question if Bernanke is correct.

JGAM also pointed out that the US dollar continued to slide hitting a 2009 low at 1.4748 to the euro while gold rise above $1,000 oz.

JGAM’s managed portfolios have performed very well.  Year–to-date they have risen between 8.7% and 28.7% depending on the risk profile and portfolio.

What can one do?

First, remember that the sun always shines somewhere as evidenced by a September 17, 2009 New York Times article entitled “Recovery Picks Up in China as U.S. Still Ails” by Keith Bradsher.

Here are some excerpts:  Investors’ interest in the real estate market is picking up as economic growth returns across the Chinese economy.

Just eight months ago, thousands of Chinese workers rioted outside factories closed by the global downturn.

Now many of those plants have reopened and are hiring again. Some executives are even struggling to find enough temporary staff to fill Christmas orders.

The image of laid-off workers here returning to jobs stands in sharp contrast to the United States, where even as the economy shows signs of improvement, the unemployment rate continues to march toward double digits.

In China, even the hardest-hit factories — those depending on exports to the United States and Europe — are starting to rehire workers. No one here is talking about a jobless recovery.

Even the real estate market is picking up. In this industrial town 90 miles northwest of Shanghai, prospective investors lined up one recent Saturday to buy apartments in the still-unfinished Rose Avenue complex. Many of them slept outside the sales office all night.

“The whole country’s economy is back on track,” said Shi Yingyi, a 34-year-old housewife who joined the throng. “I feel more confident now.”

The confidence stems from China’s three-pronged effort — a combination of stimulus, liberal bank lending and broad government support for exports.

The Chinese Central Bank said the country’s economy surged at an annualized rate of 14.9 percent in the second quarter. The United States’ economy shrank at an annual rate of 1 percent in that period.

“So often China and the U.S. are mixed together as being in the same situation, and that is totally wrong,” said Xu Xiaonian, an economist in Beijing with the China Europe International Business School.

But with more economic planning than the United States, China has been able to disburse its stimulus much faster, turning it into new rail lines and highways.

The state-controlled banking system here — which breezed through the global financial crisis with minimal losses as American financial institutions reeled — unleashed $1.2 trillion in extra lending to Chinese consumers and businesses in the first seven months of this year. That money is financing everything from a boom in car sales, up 82 percent in August from a year earlier, to frenzied factory construction.

To be sure, not all the laid off workers throughout China have been hired back.

“Some plants reduced worker numbers by 20 to 30 percent, now they hire back 10 percent,” said Stanley Lau, deputy chairman of the Federation of Hong Kong Industries, which represents export-oriented factories employing 10 million Chinese workers.

Global investors can kill two birds with one stone… invest in a faster growing economy and diversify out of the US dollar by investing in Chinese equities.

One way to invest in China is with the Jyske Invest China Equities Fund. This fund is available to non US residents and can be contained in portfolios of US residents managed by JGAM.

Jyske Invest recently wrote at its web site:

Market Comments, Q2 2009

Still signs that the economy will improve. For the second quarter, the fund generated a return of 38.01%, outperforming the benchmark by 0.21 percentage point. For the year to date, the fund posted a return of 40.71%, underperforming the benchmark by 1.38 percentage points.

Review

Over the past quarter the economic indicators continued the good trend. The PMI indicator, reflecting the general economic development, has now increased in six out of the latest seven months. When the PMI indicator is above 50, it is an indication that the economy is growing, which was the case in the past three months. The improvement of the economy has occurred earlier than expected.

Consumption indicators also show a positive trend. This is clearly reflected in the fund’s equities within consumption. Prices of several of the fund’s producers of sport equipment and cars such as China Dongxiang and Dongfeng Motor increased in particular.

There are clear indications of a turnaround in the real estate sector. The number of transactions increases sharply and the number of unsold apartments is on the decline. Our allocation to Chinese real estate companies has been high, which had a favourable impact on the relative return.

Outlook

We expect the favourable economic development to continue into the last six months of the year and that the government will continue to pursue a relaxed policy. The risk is that the policy is tightened again, which will adversely affect the equity market.
The market is no longer undervalued. Perhaps the valuation is fairer. A positive economic development and increasing earnings must drive equity prices higher now. The development in earnings estimates will be followed closely.

Jyske Invest adds that past performance is not a reliable indicator of future results. The value of and return on your investment may fall, and you may not get back the full amount invested.

The fund invests chiefly directly and indirectly in equities issued by companies which are based in China including Hong Kong or which pursue more than 50% of their activities (by sales or production) in China including Hong Kong.

Risk factors

The fund’s investments have a high risk profile and may see substantial fluctuations in the market value of the fund’s assets. The objective is to obtain a higher average return over time.

Performance of the fund for the last five years is below:

china-fund

Returns by year.

china-fund

Recent major investments.

china-fund

An ETF traded on the New York Stock Exchange that investors can use to invest in China is the SPDR S&P China Fund (symbol: GXC).  Any investors can buy this through Jyske or most stock brokers.

This fund aims to track the S&P Citigroup BMI China Index, a market capitalization weighted index that defines and measures the investable universe of publicly traded companies domiciled in China.  This is an easy way to hold the equivalent of a broad spread of Chinese shares.

Here is a chart from finance.yahoo.com showing the movement since inception of this ETF.

china-fund

For investors who want to invest in the Chinese yuan but not the Chinese stock market the WisdomTree Dreyfus Chinese Yuan Fund  Investment ETF  is listed on the New York Stock Exchange (symbol: CYB).

This ETF  seeks to earn current income reflecting money market rates in China, as well as provide exposure to the movement of the Chinese Yuan relative to the U.S. Dollar.

For more information US investors can contact Thomas Fischer at Jyske Global Asset Management at fischer@jgam.com

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

Investors in China and/or the yuan should exercise caution and recognize that there can be short term volatility.   There are huge amounts of borrowed dollars invested in China and any time there is a wave of fear or profit taking this thinly traded market and the yuan can drop rapidly.  For example in August 2009 18.4%, or nearly 500 billion yuan of the funds in the market were pulled as investors locked in profits on the Chinese stock market.

There had been months of gains, so the sudden pull back was not surprising as doubts about valuations and the sustainability of the economic recovery began to grow with rising prices.   Shanghai’s stock market declined 21.8% in one month.  There can be sudden and sharp pressure any time investors turn cautious.  However after the 21% drop in this market, autumn may be a better time to buy.

There is an Ecuador agricultural opportunity… in the Galapagos.

ecuador-opportunity

Here is an aerial view.

ecuador-opportunity

Stay tuned as I’ll introduce this in an upcoming message.

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 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 our Ecuador International Business & Investing seminar in 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.

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.

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

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.

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 article “Recovery Picks Up in China as U.S. Still Ails” here

International Gold Review


This international gold review is a followup to yesterday’s message about maintaining control over your wealth.

Jyske Global Asset Management just changed its gold position so we should take a new look at gold.

Most major governments have deficits in their budget.  This forces them to borrow or print money that is not backed by productivity.  When this happens long term, the purchasing power of  money created in this way, loses purchasing power.

Any form of exchange must possess five qualities to be considered real money that will store value and purchasing power.  These five values that money must be are durable, divisible, portable, desirable and rare.

When a government creates a currency with no production to back it, then that currency loses its rarity and its purchasing power falls.

Gold is one long term way to combat the risk of a falling currency.

Gold is real money because it has all five qualities of real money.

Make no mistake… when it is rare… paper money is better money than gold… because it is more divisible and portable.   Electronic money available in a credit card is even better… the most portable and divisible of all… IF THE CURRENCY MAINTAINS ITS RARITY.

Regretfully for the dollar, euro, yen and many other major currencies, this has not been the case…  so gold still has a place in our portfolios.  Gold as a commodity fits the five standards best of all and for thousands of years has been used as a form of money.

In a moment we’ll look at what might happen to the price of gold in the months ahead.

First, because many readers have asked about bringing gold into Ecuador, I checked with out attorney Andres Cordova in Quito.  Here is his reply: Dear Gary:  After reviewing applicable legislation, we’ve found that there is no restriction on the introduction of gold or coins to Ecuador.

The introduction of such, however, does carry a tariff that is to be charged in accordance to weight or monetary amount. Furthermore, there’d need to be a customs filing in which the gold presentation is to be declared, such as ingots, jewelry, dust, etc. Furthermore, an explanation of where does such gold / coins come from needs to be consigned in such form. If gold is brought with the traveler, then such must be specified in the customs form that each passenger gets before landing in Ecuador.

Gold and coins would pay a tariff of 0.5% and 12% VAT.  However, if we could know exactly what the person intends on bringing to Ecuador we can better review applicable taxes and tariffs. Best regards,  Andres

For those that want physical gold in Ecuador, there is gold mining in Ecuador and are gold dealers. I do not know any  personally. But there are many places with signs that they buy gold. I am researching this and will post a password protected message for our Ecuador Living subscribers.  You can subscribe to Ecuador Living so you’ll receive this report when it is published.

There are three other ways to hold gold than in bullion and coins. These alternatives are less expensive than bullion and avoid the hassle and dangers of carry heavy, valuable precious metals on your person and across borders.  Plus they avoid this Ecuador tax.  We’ll review these options after we examine what might happen to gold’s price in the days ahead.

This article is from the Asset Strategies Alert:

When gold breached the $1,000/oz mark in February of 2008, the mass media were full of reports of unprecedented coin demand and long wait times for bullion buyers. You couldn’t open the paper without seeing a piece about the gold rush.

Although the press has now set gold aside for hotter stories, I can tell you demand for gold coins continues at unprecedented levels worldwide, and production is still struggling to keep up. Take a look at these recent reports:

Sales of the Austrian Philharmonic gold coin soared 544% in the first two months of 2009 (vs. the same period the year before), with production at the country’s mint running quadruple its usual volume.

The demand for Krugerrands is at its highest level since 1986. The South African refinery recently doubled production of blank gold coins to 20,000 ounces per week.

China, now the fastest-growing market for gold, saw 2008 sales (measured in dollars) rise by 50% over the year before – and total sales in January 2009 were one billion yuan (US$146 million), 30% more than all of last year.

The U.S. Mint sold 193,500 one-ounce gold Eagles in the first seven weeks of 2009 – equaling the number shipped in all of 2007 and about matching the first half of 2008.
Russia’s Sberbank says it has “never seen such strong demand for investment coins.”

Swiss banks just reported they are running out of secure storage space for gold bullion held by investors and institutions in their vaults.

I have worked with Michael Checkan at Asset Strategies International, Inc. for many decades and any time I think of gold, I think of him.

Michael’s firm offers one of the the three gold alternatives… Precious Metals Certificate Programs.

Precious metals can be purchased and stored on your behalf through the Perth Mint Certificate Program.  This program offers storage for gold, silver, and platinum at the Perth Mint in Western Australia. This is the only government guaranteed precious metals program in the world… fully backed by the government of Western Australia, and has operated continuously from the same location for over 100 years.

This is an easy and low cost way to hold metals overseas.  You can learn more about these certificates from Asset Strategies with a toll-free call 1-800-831-0007 or 301-881-8600 or visit their website www.assetstrategies.com.

See an interview with Thomas Fischer of Jyske Global Asset Management and Rich Checkan of Asset Strategies here.

Jyske Global Asset Management (JGAM) agrees that gold is a good asset now.  All of JGAM’s portfolios  were overweight in gold last time I reviewed them. . The low risk portfolio had about 5% in gold…. medium risk about 9% and the high risk portfolios were holding about 15% gold.

However JGAM does not invest in physical gold or even undivided bullion. They invest in the ETFS Physical Gold shares.  This is a share traded mainly on the London Stock Exchange  (code PHAU) but also trades on Deutsche Borse (Xetra), NYSE-Euronext, and Borsa Italiana.

The ETFS Physical Gold provides an easy, simple, cost-efficient and secure way to access the
precious metals market.  This share provides a return equivalent to movements in the
gold spot price less fees because the shares are backed by physical allocated metal held by the
Custodian (HSBC Bank USA N.A.).  All the gold held are good delivery bars.

This is a very practical way to own gold, because you can buy the shares direct from any stock broker.   The shares are transferable or sold in the market.  These shares trade on the stock markets just like an equity and their pricing and tracking operate similar to an Exchange Traded Fund except the share tracks the price of physical gold, not a portfolio of equities.

Here is the five year simulated price of these shares from the fund’s fact sheet.

gold-chart

Other ETfs that invest in physical gold are SPDR Gold Shares (GLD) listed on the New York Stock Exchange  in November of 2004, and traded on NYSE Arca since December 13, 2007, as well as  Singapore Stock Exchange, Tokyo Stock Exchange and the Stock Exchange of Hong Kong.

Here is a chart of the SPDR five year performance.

gold-shares

Another ETF that invests in gold is iShares Comex Trust (IAU).

I have just competed a full gold report for our multi currency subscribers that provides a  third alternative to gold bullion and coins.

In the multi currency gold report, I describe the recent change in JGAMs gold position, the profit they made and how Jyske Bank Private Bank and Jyske Global Asset Management can buy gold alternatives.

You can subscribe to our multi currency service and get this report here.

Deficit spending by the major governments around the world has reduced the integrity of the world’s currency system. All currencies risk losing purchasing power.  Gold long term is one way to combat this risk.

Gary

The greatest asset of all is the ability to earn wherever you live, which brings everlasting wealth.

This is why we offer our course Tangled Web… How to Have an Internet Business.

A clear mind and healthy body are also a vital assets… plus a second language is a powerful diversification tool.

This is why I am giving everyone who enrolls in our North Carolina or Ecuador International Business & Investing seminar in October or November our “Tangled Web… How to Have an Internet Business Course” (offered at $299) free.

Here are comments from a reader about the way we help:  Thank you for your inspiration and information outlining foreign banking and retirement.  Your comments and suggestions are welcome for planning the steps to evaluate the early stages of living abroad.

Sept. 17-21 Ecuador Super Thinking + Spanish Course

Sept. 23-24 Imbabura Real Estate Tour

Sept. 25-28 Ecuador Coastal Real Estate Tour

Join us with Jyske. Learn more about global investing, how to have an international business and diversification in Ecuador at the seminar.

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

October 16-18 Ecuador Southern coastal tour (early sign up before Sept. 1, $499 per person).

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

Nov. 6-8 IBEZ Ecuador Seminar

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

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

Electric Investments


Yesterday’s message looked at high voltage investments ideas.

In a moment we’ll see an Ecuador income idea.

First, here are some more electric thoughts about investing in energy.

wind-turbine

Investments in alternate energy can be profitable.  For example in 2006 we introduced the idea of investing in the Vestas Wind Turbine company.  The chart below from finance.yahoo.uk shows that this share has done really well… up four times even after the great 2008 correction.

Vestas-shares

Jyske can buy the VESTAS WIND ADR (VWDRY) of this share for US investors by the way.  Here is a chart from finance.yahoo.com of the ADR since it was introduced.

wind-turbine-chart

Jyske Bank currently has a buy recommendation with the current price of 378.50 Danish kroner  and a target price of 550 Danish kroner. Jyske considers this a HIGH RISK share and says:  Thanks to its market share of about 23% in 2007, Vestas Wind Systems is the world’s largest producer of wind turbines. The company began its production of wind turbines in 1979, and was listed on the stock exchange in 1998. Today Vestas produces and sells wind turbines in sizes from 850 kW to 3.0 MW. The company’s vision is to turn wind into an energy source equal to oil and gas.

They believe the shares are available at an attractive valuation. The company’s streamlining will continue to the benefit the earnings margins and despite the financial crisis, Vestas is facing high growth past 2009, and the management is experienced and strong.

You can get more details from Thomas Fischer at Jyske Global Asset Management at fischer@jgam.com (US investors) or Rene Mathys at Jyske Bank (non US investors) at mathys@jbpb.dk

Yet we must understand that not all alternate energy investments will go well.  See what I mean here.

Of course one malfunction does not mean much… this was just a dramatization… pointing out that we have to invest in a future…that we cannot truly see.

What can we do?

First, we can understand that we may not know the technology but we can know the trends.  Part of the future is in the here and now and we can pick up these trends.

Here are seven trends we can use to reflect upon when looking at new ideas for the future.

Trend #1: The rate of change will increase. This is self evident. Change is speeding up… so new products will not remain “in” as long.  This means bigger is not better. Ian Pierson, a futurist whom I know and respect, said that the value of a company is its idea… less its size and experience.  Fast and small have an advantage now.

Trend #2: The rate of private consumption will grow. From 1884 to 1995 private consumption just about doubled, but increased 25% in the past ten years. This means that the amount of money spent per person will continue to grow. This also means that the amount of discretionary income per person is growing.  There will be more people producing more.

Trend #3: There will be more automation. In the process of automation, mankind supplements muscles first, brains second and feelings third.

Trend #4: Age, gender and wealth are becoming increasingly irrelevant.

Trend #5: There will be a shift of attitude from our brain to heart.

Trend #6: Families will turn more and more of their responsibilities to the market place.

Trend #7: The growth in markets will be for stories, not products.

When looking at new technology… run it past this list.  This will not tell you if the technology is best… but may help you understand if the product fits the trends.

Take electric cars as an example.

We have been thinking about electricity here at the farm for some time as we have great hydro potential.

Mark Owen has been helping us research this and sent us this note about electric cars.

Electric Car Idea

Those readers who were able to get to the final paragraphs of my Electric Bicycle article might remember that I myself wondered what the Electric Bike Industry might lead to. I questioned how the industry could become more mainstream, how could it address safety concerns, convenience, and of course speed. I also pondered the question: “Two wheels or Three?”

Aptera answers “Three.”

electric-car

Aptera

After completing the article I researched a new electric “car” named the Aptera Typ-2e. This is an extraordinary vehicle on many accounts. The reason I italicized the word car when describing this vehicle is that it will be considered a motorcycle by the US government. It has three wheels, two in front, one in back. The cockpit is teardrop shaped cocoon with airbags, two comfy-looking seats, and a very sophisticated dashboard. Many have said the interior of the cockpit makes it seem like you are in a small airplane.

I have seen this car featured by videographers, and it is purported to have extraordinary acceleration and top speed. Please visit the Aptera Forum for the latest specifications sheets

I am sure it will be faster, safer, and more convenient than my electric bike.

It will cost a little more, though. Aptera reports they will be delivering the first of their vehicles in October of 2009, for an estimated cost of between $25,000.00 and $40,000. This vehicle is by far my favorite of all the electrics You may see the Aptera and 26 other electric cars reviewed here

If any reader has access to the Aptera, please invite me for a test drive, no matter where you are.

Maybe in a few years, when Aptera gets their initial “bugs” worked out, and the price slides down a bit due to enhanced production, you will see me and my daughter grinning behind the wheel of one of these cars.

This car differs a lot from the Fisker Karma we reviewed in yesterday’s post.

Will people buy the stylish Karma or the more functional Aptera?

Each of these technologies may help a bit.  Some solar… some wind… hydro… better batteries and such plus most importantly energy use reduction.

Perhaps micro production and savings will be the in thing instead just as the PC overwhelmed the mainframe computer.

Mark for example has been looking at micro wind power for us.  Wind energy is normal considered expensive… but Mark shows here that it does not need to be.  He writes:

Gary, I was at the farm a couple of times this winter. I went to the top and felt the consistency and strength of the wind up there. I have done lots of research on the cost-effectiveness of installing a windmill system. These pre-made windmill systems are expensive. Even with consistent wind, it takes a long time for a windmill system to pay back its initial investment costs.

I researched making our own windmill. It will be easy and cost eight cents on the dollar. I have already purchased a 33 foot aluminum sailboat mast. It is quite strong and will handle a medium-sized windmill. I would like to purchase the remaining components. The motor would cost about $200.00 (motor/generator, they are both the same thing). I would also like to purchase a fan blade kit. I think after the initial purchase, I will be able to manufacture our own fan blades. I will produce a template from the purchased blades, then manufacture future blade systems from the template. I think I can purchase the blade kit for another $100.

Perhaps the way of we receive, store and use energy will evolve into many inexpensive, small devices each saving a bit… as PCs and then lap tops and now hand helped devices have altered the way we receive and transmit information.   

We can see a bit of this at Neuton Power.  I have used a Neuton Electric lawn mower for five or six years and finally the battery died.  When I called to get a new one, I discovered they also have electric weed eaters, chain saws, hedge trimmers, blowers and power carts. The rep explained that when they introduced their weed eater they were overwhelmed with 1,500 orders.

I have mine on back order. It will take months for them to fill demand… so electric replacing gas is in… perhaps for now in small ways… but watch for this trend to grow.

Here is another nifty idea that saves energy and could create a business opportunity in Ecuador… the solar or sun oven.

sun-oven

Sun ovens cook with the sun… no electricity… fossil fuel, wood, charcoal or any pollution are required.   This may offer a  business opportunity in Ecuador or anywhere sunny.  Learn more about solar ovens here.

Whether the savings are large…

wind-turbine

Worlds-Largest-Wind-Turbine-Generator

or small…

energy-saver

Neuton electric weed eater.

Investing in alternate energy is wise for the future.

Gary

The greatest asset of all is the ability to earn wherever you live, which brings everlasting wealth.

This is why we offer our course Tangled Web… How to Have an Internet Business.

A clear mind and healthy body are also a vital assets… plus a second language is a powerful diversification tool.

This is why I am willing to pay you $300 to attend either our Ecuador Super Thinking plus Spanish seminar in September or our North Carolina International Business & Investing seminar in October.  Sign up for either seminar and I will email you our Tangled Web… How to Have an Internet Business Course (offered at $299) free plus I’ll knock an extra dollar off your seminar fee…. to round up the $300 savings.

Here are comments from a reader about the way we help:  Thank you for your inspiration and information outlining foreign banking and retirement.  Your comments and suggestions are welcome for planning the steps to evaluate the early stages of living abroad.

Sept. 17-21 Ecuador Super Thinking + Spanish Course

Sept. 23-24 Imbabura Real Estate Tour

Sept. 25-28 Ecuador Coastal Real Estate Tour

Learn more about global investing, how to have an international business and diversification in Ecuador at the seminar.

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

October 16-18 Ecuador Southern coastal tour (early sign up before Sept. 1, $499 per person).

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

Nov. 6-8 IBEZ Ecuador Seminar

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

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

Ecuador Jobs


Ecuador farming is one way to create your own Ecuador job.

In a moment we’ll see how to diversify globally to beat  inflation and protect your savings. First, let’s look at ways to earn income abroad.

ecuador-farm

Ecuador’s land is rich.

ecuador-farm

Here is some land recently purchased by a reader just outside Cotacachi… beans and blackberries are grown here.

Many readers write and ask about getting work in Ecuador.  Jobs are scarce, do not pay well. This is why our foundation is devoted to creating employment… but for Ecuadorians not expats moving down.

We do help our readers learn how to earn income abroad with their own business because this helps have work in Ecuador and often enhances employment in Ecuador for Ecuadorians as well.

I was delighted to read this note about earning income from Ecuador farming. The reader shared this:

Hi Gary,  I just wanted to drop you a note making you aware of another idea  we came across to produce some income in Ecuador.

My wife and I have retired in the Cotacachi area ( we live in Ibarra now) and have been looking at some income producing ideas as we are only 52 years old and not ready to sit in out rocking chairs just yet. Believe it or not, we have settled on becoming chicken farmers!

My wife and I have agreed on a partnership with a couple that own a farm. We are putting up the money to fix up a building on their land and turn it into a chicken coop.

We then purchase the chicks at 55 cents each, waterers, feeders, heaters, and feed . Our partners make sure the chickens have water, food, heat, and a good clean environment. We then sell the chickens after raising them for 48 days back to the company we bought them from. They are currently offering 90 cents a pound.

Overall, we are making about $1.00 a chicken every 7 weeks or so. Our chicken coop holds 2400 right now and we plan to build a couple more structures that will hold 14,000.

We never imagined that when we moved here, it was possible we could become chicken farmers. Our friends and family back in the States are in disbelief.  Interesting to say the least!

ecuador-farm

Merri and I love our chickens.  We…

ecuador-farm

let them roam free. There is something wonderful about collecting the eggs and they are so much better than those available in the store… thick shells…. deep orange yolks.

We helped another reader buy….

ecuador-farm

this chicken farm just outside Cotacachi…

ecuador-farm

at a very low price.

The greatest asset we can have is the ability to earn anywhere in the world doing what we enjoy. This is why we offer our course Tangled Web… How to Have an Internet Business.

This is why I am willing to pay you $300 to attend either our Ecuador Super Thinking plus Spanish seminar in September or our North Carolina International Business & Investing seminar in October.  Sign up for either seminar and I will email you our Tangled Web… How to Have an Internet Business Course (offered at $299) free plus I’ll knock an extra dollar off your seminar fee…. to round up the $300 savings.

Sept. 17-21 Ecuador Super Thinking + Spanish Course

Sept. 23-24 Imbabura Real Estate Tour

Sept. 25-28 Ecuador Coastal Real Estate Tour

Learn more about global investing, how to have an international business and diversification in Ecuador at the seminar.

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

International Investment Allocations

Jyske Global Asset Management just finished altering their managed portfolios after their late August Investment Committee.

They made the following changes to their managed portfolios:

Their asset allocation exposure remained  the same. They are:

* Neutral on Fixed Income (i.e. bonds and currency positions other than dollar)

* Underweight on Equities

*Overweight on Alternatives and Cash

The gearing on leveraged portfolios has been increased a little to adjust for the deleveraging effect of positive development on the value of portfolios.

Here is what that means. If an investor desires a one times leverage and their portfolio started with $100,000, they added $100,000 so a total $200,000 was invested.  If the portfolio has risen over 15% in the last six months, its value is now about $230,000.  The leverage is now less than one time… so about $20,000 more is borrowed and invested.  This will put the portfolio at $250,000 with a $120,000 loan.

JGAM has also reduced the dollar exposure in their portfolio. They belive as I do that the US dollar is likely to fall versus other currencies.

They have added more Brazilian, Mexican and New Zealand bonds to some portfolios.

They were so underweighted with equities in some portfolios that they added some shares… though they remain underweight.

The new shares added were: Group4 Securicor, Gazprom,  iShares S&P Global Clean Energy and iShares FTSE BRIC 50.

You can see a review of the portfolios and the shardes above as a Multi Currency Course subscriber.

Be sure to see about a new 100 mile per gallon electric car at Jyske’s Financial Friday WebTV here

Send questions about Jyske JGAM and their portfolios to Thomas Fischer (US investors) at fischer@jgam.com or  Rene Mathys (non US investors) at mathys@jbpb.dk

Gary

October & November Ecuador Tours

Here is a recent comment about staying about a seminar at our hotel:  We both thoroughly enjoyed the workshop and really appreciated Mauricio and Alberto’s help, as well as the help from all of the hotel staff.  Cotaccachi truly is a magical place and we feel blessed to have had the opportunity to stay Meson.  We really hope we’re both lucky enough to return in February.

October 16-18 Ecuador Southern coastal tour (early sign up before Sept. 1, $499 per person).

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

Nov. 6-8 IBEZ Ecuador Seminar

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

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


Brazil Multi Currency Opportunity


See how my multi currency course subscribers have been able to gain up to 50% in Brazil during 2009.

Many readers at this site know me best as Mr. Ecuador.  However recently some of our subscribers have enjoyed the biggest profits as multi currency investors in Brazil.

Though Merri and I have been investing, living and working in Ecuador for over a dozen years now, our greatest expertise is as multi currency investors as we are in our 41st year.

See below how multi currency investing brought us to Ecuador and how your interest in Ecuador can now bring you a free subscription to our multi currency course as I present a survivors guide to currency and market turmoil.

Those interested in Ecuador do not have to change currencies when they travel here because Ecuador’s currency is the US dollar.

This means they need to learn how to make your money go up as the US dollar and stock markets go up and down…

The US dollar has fallen… badly against major currencies like the yen, euro and Swiss franc for 37 years.  You can see this long term, steady decline of the US dollar in this chart from Grandfather.com.

multi-currency-debt

One reason for this fall is the growing debt in the USA.

Now this debt is even worse. Here is a picture from USA Today that shows how the US public debt  has just grown 12%.

ecuador-tickets

Even minor currencies such as the Colombian peso, and Brazilian real have risen steadily versus the US dollar… 25%, 50% since the early 2000s and more.

Until.. in 2008, the greenback suddenly zoomed up… as stock markets collapsed around the world. Now the dollar is falling again.

Sideways motion like this destroys most investors.

Yet there is a way to earn even in these worst times…by learning how to spot value…that turns turmoil and currency shifts into profit.

This is not just a problem for Americans either. The dollar’s downfall affects currencies all over the world and creates global economic turmoil. For the modern economy to operate in its current fashion some reserve currency is required.

Yet what currency would you choose…the Chinese yuan…the euro…gold, oil? Would you trust your life savings to speculate on that?

Of three things we can be sure.

First, The US dollar will fall more…much more.

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

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

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

More important these same investors have learned how to survive through turmoil.

My name is Gary Scott. I have been writing and publishing information about the falling greenback and how to earn from it though international investing for over forty years (since May 1968 to be exact).

Fortunately I stumbled across multi currency investing at an early stage and wrote a book about this clear back in the 1970s when the US dollar was first beginning to erode.

Since that time my books and reports have helped hundreds of thousands of investors find hot areas of value in every decade.

In the 1970s we helped our readers  find investments in gold & silver as well as investments  in the currencies of Japan, Germany, Switzerland, England, Australia and Hong Kong.

In the 1980s, the Tigers, Taiwan, Singapore Malaysia and South Korea, & Turkey were the places where our readers gained value.

The 1990s saw South America (which led me to Ecuador) as the place to invest.

The early 2000s offered great value in China, India and Eastern Europe.

We have helped readers find good value real estate throughout this time, first in Hong Kong, then London, Switzerland,  Isle of Man, Dominican Republic and now Ecuador as well as in Small Town USA.

We have also helped readers bet against the US dollar throughout these decades which as the chart above shows has worked well.

Finally in the early 200os we began helping readers find good value green investments.

I would like to offer you a valuable real time emailed course that teaches how to invest in multi currency portfolios plus how to sometimes use leverage in these portfolios to create extra profits.

Sleepy Safe Portfolios Can Earn Over 100% Per Year

Multi currency investing does not require any fast trading techniques.  Multi currency portfolios are normally slow and sleepy investments…not currency contracts or futures speculations.  Most multi currency positions are aimed with a five year horizon…pretty sleepy compared to people who trade currencies (an entirely different and far riskier technique).  For most of us, slow and sleepy means SAFE!

Yet multi currency portfolios can be really profitable as well.

How sleepy and how safe?

Let’s look first at sleepy.

In 2006 we created an Asian multi currency portfolio consisting of just five award winning mutual funds.

We did not touch the entire portfolio for an entire year. Then after one year we made just five changes…dropping two mutual funds and adding three other mutual funds. Then we did not make another single change. That’s pretty sleepy, choosing a handful of mutual funds and making only five changes in two years.

How safe?

The portfolio was chosen with the help of one of the world’s safest banks and the mutual funds were held at that bank at all times.

Okay. Here is the big question. How profitable?

In the first year (2006) this portfolio rose 114.16%. Then we made the five changes mentioned (two funds dropped and three added). In 2007 this portfolio rose 122.62%. 2008 was a disaster year which we will look at in a moment.  But when your portfolio is over 200% in two years, it takes a lot of disaster to lose.

Suppose we get more specific.

That safe bank is a Danish bank. That’s good because in recent years Denmark has been rated by Standard & Poor’s as one of the safest country in the world in which to bank

The bank is Jyske Bank…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. The Danes have always been big currency traders because as a small naval country surrounded by England, Sweden, Finland, Russia, Germany, Norway and other countries…they have always had to deal in many currencies.

This historically gained expertise means that unlike most banks (that trade only eight hours a day) Jyske maintains a 24 hour global currency and commodity dealer service. 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.

Let’s address this issue of safety in more detail. Normally this is a pretty moot point. Right now everyone is concerned. Is a bank safe or not? I like Jyske from a bank safety point of view because there are three bank safety points, from the top down.

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: Jyske Bank is Denmark’s second largest bank.
On October 10 2008, Moody’s affirmed Jyske Bank’s long-term Aa2 rating stable 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.

That’s safe!

I happen to know Jyske Bank because I began using them (as my bank) over 20 years ago. They are one of the few banks that offers a special multi currency portfolio service for investors from almost anywhere in the world.

I was one of the first writers and publishers to begin writing about multi currency investing. Jyske bank was one of the first banks to offer a multi currency portfolio service…and they were my bank.

Not surprising we got together and have created a strategic alliance that can help you learn how to create multi currency portfolios that suit you.

My multi currency course helps readers learn how to find good value and develop multi currency portfolios that suit their specific circumstances.

Before I explain how you can use this course, let’s look at both the up and down side of these high performing portfolios?

The course provides two levels of education. Part one gives readers an extensive beginner’s guide to developing multi currency portfolios.

Part two is unusual and neat.  Part two educates in real time. We create multi currency portfolios and track them real time.  The education comes from dissecting and discussing the portfolio results.  This is a totally novel way to learn…real time from real portfolios created by some of the best investment managers in the world as these portfolios rise or fall in the market place…in the here and now.

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

Here is our educational performance over the past few years.

We created five portfolios for educational purposes on November 1, 2005. One of the five multi currency portfolios was the Asian Emerging Multi Currency Portfolio. The portfolio started with a $100,000 investment and a $200,000 loan in Japanese yen (more on the loans in a moment).

This gave us $300,000 to invest in this portfolio.

Amount

Currency

Investment

75,000

Rupee

Jyske Invest Indian Equity Mutual Fund

75,000

Yuan

Jyske Invest Chinese Equity Mutual Fund

75,000

Yen

Jyske Invest Japanese Equity Mutual Fund

75,000

Multiple

Jyske Invest Emerging Market Bond Fund

Investments Total Value 300,000.00

Invested $100,000

Loan $200,000 100.00% JPY at 1.63%

Loan cost for one year $3,260.

This portfolio diversified into bonds and equities throughout Asia ..very multi currency.

Chinese yuan, Indian rupee, Japanese yen and more.

Twelve months later the portfolio was worth $417,420. Paying off the loan cost $203,260 leaving $214,160 or $114,160 (114.16% profit) on the $100,000 originally invested.

On November 1, 2006 we made the five changes mentioned above. We dropped the Japanese equities and emerging market bond mutual funds and added an Eastern European, Far Eastern and Turkey equity mutual funds. This is how the rearranged portfolio stood.

Amount

Currency

Investment

75,000

Rupee

Jyske Invest Indian Equity Mutual Fund

75,000

Yuan

Jyske Invest Chinese Equity Mutual Fund

75,000

EUR

Jyske Invest Eastern European Equities

50,000

Asian

Jyske Invest Far Eastern Equities

25,000

Lira

Jyske Invest Turkish Equities

Investments Total Value 300,000.00

Invested $100,000

Loan $200,000 100.00% Czech Koruna at 3.875%

Loan cost for one year $7,750.

As promised this portfolio only had five changes. We swapped the Japanese equity fund for a Eastern European equity fund and dropped the bond fund replacing it with a Far Eastern and Turkey equity fund.

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

So how did this new updated portfolio do? From November 1, 2006 to October 31, 2007 the fund rose in value from $300,000 to $430,370. The loan payoff of $207,750 leaves a profit of $222,620 or a rise of 122.62%.

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

I am sure that when looking at performance like that you are thinking “how did the other portfolios do?” Good question and your suspicions are correct…some of the other portfolios did not rise this much.

Yet believe it or not some portfolios did even better.

For example the 2007 Green Portfolio consisted of six shares and rose 266.30%!

Here is the exact performance of all five portfolios for the last two years.

2006 Portfolio

US Dollar Long

9.04%

US Dollar Short

10.43%

US Dollar Hedge

11.46%

Emerging Market

42.93%

Asia Emerging Market

114.16%

2007 Portfolios

Dollar Neutral

38.67%

Dollar Short

48.19%

Swiss Samba

53.32%

Asia Emerging Market

122.62%

Green

266.30%

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

Our course does not recommend nor manage portfolios.  We did not suggest that any single reader invest in any of these portfolios. The portfolios are educational and designed to help readers work with their own investment manager to create their own multi currency portfolio that suits their own special, individual needs.

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

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

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

The course also helps you manage risk. The incredible portfolio performance above was achieved because the portfolios were leveraged using a tactic we call a multi currency sandwich. Investors borrow low and invest in yielding or growth portfolios. The portfolios used loans in Japanese yen and Swiss francs to magnify profits in good times.

The course teaches how these loans can magnify losses in bad times as well.

For example look at the performance of the leveraged portfolios we created to study from November 2007 through September 2008.

2008 Portfolios

Infrastructure Portfolio

-112%

Blue Chip Portfolio

-79%

Danish Health Portfolio

-92%

Asia Emerging Market

-73%

Green

-56%

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

The multi currency course is useful because it helps investors not to expect rising markets all the time.

The power of studying markets real time, as they unfold, wards off false expectations.

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

The sad fact is…we all have to become multi currency investors.  Trusting your fate to any one currency now can destroy your purchasing power.    Every investor needs to know what to do!

The course helps spot when to leverage good times and when to retract for the bad.  he idea is to cash in when the going is good and then withdraw.

For example in early August 2007…well before the market crash….our study of the market began to show increased risk.  Our first warning lesson said:  “We have enjoyed two years of enormous growth.  Periods of high growth are normally followed by periods of low growth.”

August 17, 2007 a lesson said: “The numbers are close enough that we could be entering the fourth sub cycle down (similar to 1976 to 1978). If so expect a sustained drop in markets for two to three years.”

On September 21, 2007, a lesson said: “equity markets dropped again violently last month. Now these markets have recovered again. Yet this may be a last gasp party.”

An October 14, 2007 lesson stated:  “We never know for sure when an upwards cycle will stall. Fundamentals look good for a bright 2008 in emerging and equity markets, but this can change quickly so to give our readers a better perspective, this year we are reducing leverage and adding a sixth portfolio with no leverage to study”.

The October 15, 2007 lesson reviewed how leveraged investments rise and fell faster than investments without leverage.

The lesson on Oct 26, 2007  saved many investors as it was entitled Leveraged Investments Gone.  Just before markets started to head south this lesson warned: “I have had only about 10% of my portfolio leveraged. Compare this to 200% for the Green Portfolio (which is up 265% this year). Now I have none.

So a lot of my portfolio investments are basically in a multi currency portfolio of bonds…mostly in pounds, Swedish and Danish kroner. The equities I hold are mainly in Europe and I do not leverage equities…especially after markets have risen so much. Periods of high returns are normally followed by periods of low returns. These facts, plus my belief that numerous economic woes are rising and my recollection of Oct 1987 leave me wanting to reduce risk in my equity portfolio. So now I have eliminated all my leverage.”

The next lesson warned again: “Okay it’s time to turn the burner down.”

A November 8, 2007 Black Friday lesson reviewed  all the warnings above again and more.

The course also helps readers find ways to spot unusual distortions that profit even in bad times.

For example  lessons  on April 18 and April 27 2009 looked at the benefit of investing in Brazilian currency bonds.

This lesson led to a quick profit.

Here is an excerpt from our June 12, 2009 lesson:

Based on these ideas and those presented in the April 18 and April 27 lessons we looked at why Brazilian bonds made good sense in the LONG TERM.

Sometimes we get lucky though in the short term… as we have now.

Brazilian bonds have made a sudden jump up!   Those who have invested in them have made as much as 50% (in US dollar terms) this year.

Yet the distortion we’ll review below shows how there is even more dollar denominated profit potential ahead.

Last week the Brazilian central bank lowered key interest rates to 9.25%.  This will likely send the price of  Brazilian real denominated bonds up.

The central bank has stated that there could be more rate cuts, but they will be smaller.

This is positive news plus Brazilian inflation has declined to 5.2% from 5.53% in April 2009.

When you take into account the high interest of the real, the rise in value of bonds and the rise of the real you can see the potential.

Brazilian real bonds have risen nearly 30% since the beginning of the year…  in terms of Euro!

This is where there is another huge distortion.  The real has not risen anywhere near this much versus the dollar.

The charts from finance.yahoo.com below show the distortion.

In the last three months the US dollar has dropped from $1 = 2.30 BRL to $1 = $1.97 (- 14.3%) versus the Brazilian real as this chart shows.

brazil-distortion

In the last three months the euro has dropped from 1 euro = 3.05BRL to 1 euro = 2.60 BRL (-13.5%).   This correlation of the euro and dollar would seem normal except…

brazil-distortion

as the chart below shows, the euro has risen from $1 euro = $1.28 to 1 euro =$1.40 a 9.27% rise versus the US dollar.

brazil-distortion

In addition the Brazilian central bank has had to intervene several times in recent months to avoid the Brazilian real being too strong against the euro.

Traditionally the real has had a strong correlation with the dollar but the recent weakening of the buck versus the dollar has not spilled over into the Brazilian real.

In other words. The real is up against the euro almost 10% more than against the dollar.  This is called a cross rate distortion and means that one of two things is likely to happen.  The dollar will rise versus the euro or  the dollar will fall versus the Brazilian real.

Given the fundamental US fiscal weaknesses that could push the dollar down, I am bullish on the real rising more versus the dollar and this makes me bullish about Brazilian real denominated bonds.

Always remember the basic rule though is to never speculate more than you can afford to lose.   A US dollar – Brazilian real sandwich is worth discussing with your portfolio manager or adviser now but could creates losses as well as profits.

I have not leveraged my Brazilian bond investment. Based on this data I instructed JGAM to increase me Brazilian bond holdings.

If you are using Jyske Bank, and are a non US citizen or resident, or a US citizen living abroad, you can simply have the bank purchase Brazilian bonds and lend you the funds (within the bank’s loan to asset restrictions).   Non US citizens contact Rene Mathys for more details at mathys@jbpb.dk

US citizens should contact Thomas Fischer at fischer@jgam.com

If you are a US citizen resident in the US and have an advisory account with JGAM, they may not be able to buy Brazilian bonds for you.  They could  buy the US traded ETF “The WisdomTree Dreyfus Brazilian Real Fund.” (BZF)

These three lessons (April and June 2009) helped many readers cash in on an unusual value!

I would like to invite you to enroll in our multi currency investment course and to also receive a nine lesson report that covers basics and fundamentals of  multi currency investing.

This nine lesson report has been read by tens of thousands of investors over the years.   This report sells on its own as a survivor’s hand guide to currency turmoil for $79.  I’ll email it to you free when you enroll in our online course.

The course is emailed to you regularly and studies stock, bond and currency markets worldwide, real time, as they unfold.

I believe, from the response of tens of thousands of readers over the last 20 years, that you will gain enormously from the course.

Our course helps you learn  why and where to invest and learn why and how currencies and interest rates rise and or fall.

The initial nine lesson report I’ll email you free also shows how to calculate and manage leveraged risk and how to decide if and when to leverage or not.

Is this course for you?

Everyone needs to know how to have multi currency diversification. But in case this course does not help you, we provide a 30 day “completely satisfied or your money back” guarantee that we have offered our hundreds of thousands of readers for more than 20 years.

Our Multi Currency Educational Service is a mere $175 for a very long and educational year! Won’t you share this exciting world of wealth accumulation with us and our readers around the world? Multi Currency Educational Service

Gary Scott

Multi Currency Portfolios Course. Subscribe

Or enjoy this multi currency course for a year free!  Here is how you can save $175.

We enhance our emailed courses with regular international investing and business seminars that I conduct in coordination with Jyske Bank and Jyske Global Asset Management.

Here I am at our last seminar in Naples Florida (may 2009).

multi-currency-debt

The speakers at the Naples seminar discussed prospects for the economic future.  Left to right: Samuel Rachlin,  Rich Checkan, Steve Blumenthal, Joe Cox, John Mauldin, Gary Scott, Lars Stouge. Thomas Fischer Moderating.

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

brazilian-bond-distortion

talking among themselves during the coffee brakes and at meals.

brazilian-bond-distortion

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

brazilian-bond-distortion

Thomas Fischer of Jyske Global Asset Management will join us for the July North Carolina seminar.

I invite you to attend this July course. If you enroll between now and July 1st, I’ll also enroll you in  our emailed multi currency course free. You save $175.

Enroll in our July 24-26 International Investing and Business Made EZ course here

Here is Thomas speaking to our delegates at a previous course.

brazilian-bond-distortion

Enroll in our emailed Multi Currency Portfolios Course for $175  here.  Subscribe

Save $175!  Receive the emailed course free when you Enroll in our July 24-26 International Investing and Business Made EZ course here

Here is what a few others from around the world have said about our services and reports on international investing.

“ Gary , I am a long time subscriber in various media, and while cleaning out my files today I found some old ‘Gary A. Scotts World Reports’. In particular, the April 1988 issue provided the info that made me over a million dollars. Just wanted to say a belated ‘thank you’ and please continue the excellent work. Warm regards,”

From an Unknown Reader

“Dear Gary, I would like to give thanks to you for introducing me to Jyske Bank two years ago.

“I have been a long-time client of Merrill Lynch, but am in the process of re-evaluating my relationship with the largest brokerage company in the world. My problem is that when I compare Merrill to Jyske, Jyske outshines Merrill (or other major U.S. brokerage firms) in most categories as follows:

“1) Even though Jyske is much smaller, it has a much more global perspective which is critical in an evermore global investment environment.

“2) In order to maximize their own individual revenue, the brokers at Merrill prefer to outsource the day-to-day management of their accounts to various fund managers and hence, ‘manage the managers’. In contrast, I can call my Account Manager at Jyske and he can discuss every aspect of my account in detail with me.

“3) I attribute this difference in #2 to the fact that Jyske’s employees are not compensation driven, but instead are focused on satisfying their customers. That is why Jyske’s clients stay with the Bank on average for 12 years, which is phenomenal by Wall Street standards.

“4) Jyske’s security is far more stringent than that of Merrill’s. In addition to the standard account code and password, to pass through Jyske’s security one has to enter a Key Card number and also a randomly-generated 4-digit number from said Key Card.

“5) Having an account offshore allows me to sleep better given the anxious times we live in. Since I report the existence of the account and pay all taxes due, I am fully compliant with the law. However, such an account gives me and my family a ‘financial life boat’ should events in our own country ever get out of hand.

“As Dorothy Parker once said, ‘You can lead a horse to water, but you can’t make them THINK’. Jyske is a thinking person’s bank. My only complaint is the time zone difference since I live in California . However, since I am an early riser and my Account Manager is very responsive to my emails, this problem is very small relative to the HUGE benefits.

“Again, many thanks for introducing me to Jyske Bank. Given the ‘dumbing down’ that occurs in the popular media today, your ezine and its recommendations are ever more important. Please continue your good work to enlighten your readership.

“Warm regards,”

C.M. CALIFORNIA Businessman

“I was so overwhelmed with information I received I had to spend several days reading, sorting and filing it! I have decided to move my modest investment capital overseas.”

B.W. MONTREAL CANADA Professor

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

“A number of new and significant contacts were made. It would be extremely helpful if you could supply us with WORLD REPORTS.” I.M. TORONTO , CANADA Banker

“You are as good as your word which is rare these days. I look forward to attending one of your seminars.” C.K. GENEVA , SWITZERLAND Banker

“In spite of my marketing experience, your information really got me going!” M. C. LONDON, ENGLAND Marketing Consultant

“Thanks for the three reports. They are very interesting and should find many readers here in Japan .” M.A. Tokyo , JAPAN Computer Programmer

“I would like to say how much I enjoyed the information I received.” A.B. Providenciales TURKS & CAICOS Accountant

“First let me say how much we enjoyed the investment seminar.” W.J. SAUDI ARABIA Oil Engineer

“Once again thanks for all the great information.” G.K. PERTH , AUSTRALIA Insurance Executive

“Your letter of November 8th warned me to beware of the market just a week before the 120 point crash on November 15th!” T.G. N. CAROLINA Pilot”

Won’t you join us as we learn from our Multi Currency Educational Service? Just a mere $175 for a full 12 months of valuable, wealth building education.

Enroll in our emailed Multi Currency Portfolios Course for $175  here.  Subscribe

Save $175!  Receive the emailed course free when you Enroll in our July 24-26 International Investing and Business Made EZ course here

Ecuador Bond Default


Today, December 15, 2009, we’ll know for sure if Ecuador has defaulted on some of its bonds. Ecuador’s President Rafael Correa threatened to do this once before…and did not.

This time I believe he will.

This will be good…for many…because despite the default, Ecuador’s sun will not go away.

Ecuador-bond-default

Nor will the beauty of Ecuador’s mountains like this one we climbed.

Ecuador-bond-default

Nor will it stop the smiles of Ecuador’s happy people like these potato farmers we met on the hike.

Ecuador-bond-default

Nor will the hard working energy of the crafts people in town like Otavalo (shown here) cease.

Ecuador-bond-default

Nor the richness of the land like this Intag forest go away.

Ecuador-bond-default

Nor will the wonder of the longevity valleys like this Intag plain end.Ecuador-bond-default

Ecuador’s bond default may create profits in two ways….one in the global bond market. The other gain will be in Ecuador.

Many readers have sent me a link to last week’s Bloomberg December 12, 2009 article by Stephan Kueffner which says:

Correa Defaults on Ecuador Bonds, Seeks Restructuring.  Ecuadorean President Rafael Correa halted payment on foreign bonds he calls “illegal” and “illegitimate,” putting the South American country in default for a second time in a decade.

The government won’t make a $30.6 million interest payment by Dec. 15, when a month long grace period expires, Correa told reporters in his office in Guayaquil. The $510 million bonds due in 2012 plunged to 23 cents on the dollar from 31 yesterday and 97.5 cents three months ago.

“I have given the order that interest payments not be made,” Correa said. “The country is in default.”

Though Ecuador is a small country, the size of France, with about 11 million people, its bond default may slow the recovery of the bond market during this global economic downturn.

Latin Bonds already have strong yields.  Look at the high yields on medium term denominated in US euro and US dollars!

Currency   Bond                Country             Yield

EUR     8.5  24/09/2012     BRAZIL             7.49%

EUR     7.375 03/02/2015   BRAZIL            8.38%

EUR     11.5   31/05/2011   COLOMBIA      8.17%

EUR     5.375 10/06/2013   MEXICO           7.28%

EUR         7.5  14/10/2014  PERU               9.02%

USD        10.25 17/06/2013 BRAZIL           6.24%

USD     8.25 22/12/2014      COLOMBIA     7.42%

USD     9.875  06/02/2015    PERU             7.57%

Ecuador owes about $10 billion to bondholders, multilateral lenders and other countries…not a lot by global standards…but  Ecuador’s bond default could cause a ripple down in Latin bonds and create even higher yields.  If so, I’ll buy some today.

The bonds and yields above are from Jyske Bank’s bond list of last Friday. These are indications not recommendations.    You can get up-to-date bond information from:

US investors at Jyske Global Asset Management.  Contact Thomas Fischer at fischer@jgam.com

Non US Investors at Jyske Bank. Contact  Rene Mathys at mathys@jbpb.dk

The next opportunity is in Ecuador. Many readers have asked questions like:

Ecuador is defaulting on its bonds. Any problems because of this? Is this good or bad?

This is a question much like, “Is the US federal $800 billion bail out, good or bad?”

The answer is yes and no.

First, remember that Ecuador defaulted on bonds once before in 1999.   Everything fell apart. Bank’s shut down. The country ran out of gas.  Times were terrible.

The country remained a great place to live. The cost of living collapsed. Help was easy to get. You could buy real estate for a song. So the answer to “Is this good or bad?” depends on who you are, how much money you have and where it is invested.

The Bloomberg article points out that Correa says of the default:

“I couldn’t allow the continued payment of a debt that by all measures is immoral and illegitimate,” Correa said. “It is now time to bring in justice and dignity.”

A debt commission Correa formed last year said in a 172 page report in November that the global bonds due in 2012 and 2030 “show serious signs of illegality,” including issuance without proper government authorization. Correa invoked the 30- day grace period on the interest payment last month, saying he wanted to analyze the commission’s findings.

Correa, 45, said the government will present a restructuring proposal in coming days. “We want creditors to recoup part of their money,” he said.

Personally I think this is true, but is the wrong approach.  I have long been a defender of Correa.  He is much like Barrack Obama, young, smart, energetic, from a poor background, who worked his way to the top with a mandate made possible by minorities….based on promises that probably cannot be kept.

He is trying to make improvements..but can he?

Obama cannot change the previous American debt and some of that US debt, in my opinion, is as immoral and illegitimate as can be.  If previous Ecuadorian politicians broke the law and created incorrect loans…Correa and the people of Ecuador should punish them.  They should recoup what they can from those people…but to punish lenders will simply stop lenders from lending to Ecuador.   This will hurt the nation, long term, as a whole.

The Bloomberg article goes on to say:

“Ecuador is moving further into isolation,” said Vicente Albornoz, head of the Cordes research institute in Quito. “The hardliners in the government won.”

“Ecuador is a serial defaulter,” said Arturo Porzecanski, an international finance professor at American University in Washington. “They defaulted in the 1980s, 1990s and this decade. A lot of other countries have had one or two defaults, but Ecuador tops them all.”

Correa, who holds a doctorate in economics from the University of Illinois at Urbana-Champaign, has said he will not sacrifice spending on health and education to pay the debt. Ecuador’s foreign obligations are equal to 21 percent of its $44 billion gross domestic product. Argentina’s debt, by comparison, was equivalent to 150 percent of its GDP when it defaulted in 2001, according to Goldman Sachs Group Inc.

Oil, which has plunged 67 percent since July amid the global financial crisis, accounts for about 60 percent of Ecuador’s exports. Finance Minister, Maria Elsa Viteri, said on Nov. 18 the country’s fiscal accounts remain “strong and healthy.” Ecuador had $5.65 billion in cash reserves as of Dec. 5, according to the Central Bank.

The default was triggered by the combination of the decline in oil with “a ridiculous ideology,” said Claudio Loser, the former director of the International Monetary fund’s Western Hemisphere department, who now is a scholar at the Inter- American Dialogue. “The financial need wasn’t so great that it was forced to declare a default,” Loser said.

The South American country has defaulted six times since it separated from Gran Colombia in 1830, according to “Debt Defaults and Lessons from a Decade of Crises,” a book published in 2007 by Federico Sturzenegger and Jeromin Zettelmeyer.

“It’s a final blow to external investors, and particularly any energy investors that may have retained interest or had future plans to attempt an investment in Ecuador,” said Enrique Alvarez, head of Latin America fixed-income research at IDEAglobal Inc. in New York.

I believe this default will hurt Ecuador’s overall economy…and help expats who live and invest there in small ways. When economic conditions drop, prices become lower. Labor is easier to find. Everyone is more willing to serve and work hard…if you have money.

Merri and I were living in Ecuador when the sucre collapsed falling from 3,000 sucres per dollar to 24,000 sucres per dollar. This roller coaster reduced the cost of food, clothing, shelter, staff, everything local. Wages were down. Bargains were everywhere!

Merri and I were loved because we stayed. We spent. We provided jobs.

Life can actually be better in hard times…especially if you have your income and investments OUT of the depressed country.

There is a caveat. If conditions deteriorate too far, law and order can break down.  Short term this will make Ecuador’s life better. They won’t have the loan to repay…but long term, as they become more isolated from the global economy, this will hurt.

Ecuadorians are basically friendly, non violent people so I do not have any great concern about this. This is based on experience. I have lived in places where people were not quite as easy going, like Hong Kong in the 1960s when there were riots and bombing in the streets.

My belief if that Ecuador will remain a great place to be…especially for now.

Gary

Join us at a course in Cotacachi or on Ecuador’s coast this winter.

Here is our latest group inspecting the hotel,which is one block from the Ecuador’s Pacific.

ecuador-real-estate-risk

We’ll view this hotel if it has not sold. It has a huge front porch.

ecuador-real-estate-risk

Large second floor veranda with ocean views.

ecuador-real-estate-risk

Beautiful flowered front yard.

ecuador-real-estate-risk

The building is really rough and needs work…but over 8,000 square feet of building. The asking price is $60,000.

We have sent our Ecuador Living paid subscribers more details on this building on this Ecuador hotel for sale. If you subscribe, you can have this report. See how to subscribe to Ecuador Living here.

Join us for our next Spanish course ad real estate tours.

Join us at a course in Cotacachi or on Ecuador’s coast this winter.

Jan. 16-21 Ecuador Spanish Course
Jan. 22-23 Imbabura Real Estate Tour
Jan. 24-27 Coastal Real Estate Tour

Feb. 13-15 International Business & Investing Made EZ
Feb. 16-17 Imbabura Real Estate Tour

March 8-9 Imbabura Real Estate Tour
March 10-15 Ecuador Export Expedition
March 16-19 Coastal Real Estate Tour

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

Better still join us all year in Ecuador! See our entire schedule of 27 courses, tours, mingos and expeditions we’ll conduct in 2009 and how to attend as many of them as you like FREE.

The course fee includes meeting at Quito airport (day before the
course)…transportation (by group bus) to Cotacachi and back to Quito.
Course fee does not include air are. accommodations, food or individual
transportation.

Cotacachi & Bonds


Recent messages looked at the potential profit that Cotacachi fixer uppers can bring. We are converting an office building into condos.

Before.

Cotacachi condos

Now…but not done.

Cotacachi-condos

One great thing about fixing up Ecuador real estate are the low prices. Yesterday for example the doors began to arrive. Great… attractive hardwood…less than $100.

Cotacachi condos

Recent messages also looked at the potential profit that is building in bonds. I have received a number of messages asking for my recommendations.

First let me repeat that now is probably not yet the time to buy the bonds.
As mentioned in a recent email the spreads are so high at this time that you receive a large loss immediately. This is a sign that dealers are very nervous and do not know what to do. For example a bond might be sold for 90 and bought for 80. You immediately lose the spread if you sell.

However on short term bonds that you do not plan to sell this may not matter much.

I have been getting questions from readers asking me to recommend…which bonds.

I cannot make a recommendation for any individual because there are many factors…such as…

How much risk can you tolerate and afford?

When would you need the funds?

Do you want income or capital gains?

We are in uncharted bond territory…hardly ever seen before and you need to look closely at each bond… with your bank or financial adviser to see how how any specific bond may rise or fall.

For example there are numerous DaimerChrysler bonds that have different yields.

Curr Bond Yield
EUR 4.25% 23/01/2009 DAIMLERCHRYS NA 2.82%
EUR 4.25 % 04/10/2011 DAIMLERCHRYS NA 5.88%

USD 6.50% 15/11/2013 DAIMLER FINANCE 12.23%
USD 8.00% 15/06/2010 DAIMLERCHRYS NA 10.82%

Questions to decide are which… why..based on rating and maturity…and do you want to be in the auto industry at all or not. Obama just asked Bush to help the US auto industry.

If so are other auto firms better?

There are many options such as:

EUR 6.25% 24/02/2010 FIAT FIN & TRADE 5.83%
EUR 6.75% 25/05/2011 FIAT FIN & TRADE 6.75%
EUR 5.625% 15/11/2011 FIAT FIN & TRADE 14.22%
EUR 6.625% 15/02/2013 FIAT FIN & TRADE 14.09%
EUR 5.75% 12/01/2009 FORD MOTOR CRED 53.63%
EUR 7.25% 03/07/2013 GENERAL MOTORS 33.66%
EUR 5.75% 27/09/2010 GMAC 39.38%
EUR 5.375% 06/06/2011 GMAC 36.27%
USD 5.8% 12/01/2009 FORD MOTOR CRED 36.93%
USD 7.375% 01/02/2011 FORD MOTOR CRED 35.56%

Finally if you are a US investor, the list is shorter. Some bonds can be owned by US investors…others not. The bonds that are available for US investors are available on a state by state basis. and are only available to residents of some states.

The bonds above come from Jyske Bank’s bond list which is their list of bonds available, not recommendations.

If these bonds are of interest to you, you should contact your account manager. If you do not have an account at Jyske, contact your banker or broker or contact Jyske for more information on how to open an account to buy these bonds…when the time is ready.

A correction in the bond market could create enormous profits and properly chosen have a high risk premium in relation to the risk taken. However there is risk…in everything at this time.

Unless you are a professional bond trader do not try this on your own. Get a professional who has bond experience to help you study the risk reward and timing.

Conditions have created the potential for a really high yield…with reduced risk…when the market turns. You need to study this carefully to be sure that the turning point and specific bonds you choose suits your risk timing parameters.

US investors can get more information from Thomas Fischer of Jyske Global Asset Management at fischer@jgam.com

Non US investors can get details from Rene Mathys of Jyske Bank at mathys@jbpb.dk

Until next message good investing.

Gary

Join us at a course in Cotacachi or on Ecuador’s coast this winter.

Jan. 16-21 Ecuador Spanish Course
Jan. 22-23 Imbabura Real Estate Tour
Jan. 24-27 Coastal Real Estate Tour

We’ll visit the Otavalo markets.

Ecuador-Project

Feb. 13-15 International Business & Investing Made EZ
Feb. 16-17 Imbabura Real Estate Tour

Cotacachi-meeting

Courses are centered around this open air courtyard in our colonial inn El Meson de las Flores.

March 8-9 Imbabura Real Estate Tour
March 10-15 Ecuador Export Expedition
March 16-19 Coastal Real Estate Tour

You are also invited to tag along to the beach where we visit all types of Ecuador beach property for sale. Here is one f our previous tours enjoying a visit to Vistazul condos.

Ecuador-Project

Better still join us all year in Ecuador! See our entire schedule of 26 courses, tours, mingos and expeditions we’ll conduct in 2009.

Multi Currency Seasoned Bond Yields


Multi currency seasoned bond yields offer special potential now.

One benefit of being aged 62, with 40+ years of global investing under the belt is that it is easier to spot rare opportunities that only come once in awhile, simply because I have experienced them before.

Current events in the multi currency seasoned bond market remind me of the last great credit crunch in the 1970s when you could earn high yields on multi currency bonds.

First, a quick primer on investing in seasoned multi currency bonds. A seasoned bond is a loan that was issued over six months ago. When that bond was issued, a currency, maturity date and (depending on the prevailing current interest rates at time of issue), an interest rate is set.

Take the US dollar GMAC Bond 6.875% 15/09/2011 as an example.

This means that General Motors Acceptance Corp. borrowed US dollars and promised to pay 6.875% interest until September 15, 2011 when it will repay the loan.

The bond, again depending on current interest rates and the credit rating of the company, was issued either at par or at a premium or discount.

If the bond was sold at par to begin, investors who invested $10,000 bought a $10,000 bond. If it was sold at a discount they paid less than $10,000 for a $10,000 bond. If there was a premium, investors paid more than $10,000.

Interest however is usually paid semi annually on $10,000 (though it can be quarterly or annually) so every six months (March and Sept.) the investor has received $343.75 (half the $687.50 which is 6.875% of $10,000).

This bond is seasoned because it is now offered for sale in the bond market…just like a share is sold on the stock market. However it is the interest rate, rather than potential dividend, that sets its fundamental price.

This GMAC bond above, as of September 2008, had three years until it matures (meaning when the $10,000 is paid back). Interest of $687.50 (6.875%) will be paid each year so this bond is worth in total $2,062 (6.875% interest) plus $10,000 (repaid in three years) or $12,062 over the three years. If interest rates rise to 7.5%, then the bond is worth less because a new bond offering 7.5% would be worth $12,250. The seasoned bond example would fundamentally be worth $188 less than a 7.5% bond. All other things being equal, the example seasoned bond above would sell at a discount price of about 99.

In other words, a new investor would only be willing to pay $9,900 for a $10,000 bond because $9,900 at 7.5% creates $742.50 a year of interest or $2,222.75. So the discount
makes up for the lower interest of 6.875% versus 7.500%.

That is the fundamental that drives bond prices…but just like shares, the market then has opinions based on the credit rating on how much interest rates will change, etc.
These opinions are based on the number of years to maturity, expected interest rate change and expected credit worthiness of the borrower. Just like shares on a stock market, bonds on the bond market are usually bought and sold for more or less than they are fundamentally worth based on a buyers and sellers differing opinion.

The same rule that applies to share markets applies to bond markets. “In the long term markets are efficient and can be trusted because they are ruled by fundamentals. In the short term, markets are unpredictable because they are ruled by human emotion.”

Right now bond markets appear similar where they were in the 1970s (when I made a killing by buying good quality bonds). It appears that the human emotion of fear has caused bonds to be oversold.

For example that US dollar 6.875% 15/09/2011 GMAC bond we used as an example above was for sale yesterday at 34.00. In other words an investor could have bought a $10,000 bond for $3,400. This created a yield potential of 54.27%. Investors would get back $12,062 over three years for an investment of $3,400. They nearly quadruple their money in three years.

This bond was used as an example but this lesson does not recommend this bond which has a junk bond credit rating.
The reason for this huge discount is that GMAC may not be able to repay the $10,000 in three years. Investors may lose part or all of their investment . Buying this bond is a speculation. Most of us should leave it to the gamblers and pros.

However, wise investments are available in better quality discounted seasoned bonds.

The current credit crisis has the corporate-bond market spiraling down. Corporate
bonds with low credit rating (like the GMAC above) have dropped by massive amounts. But also more secure, safer corporate bonds with a higher rating have been hit hard as well and are available at big discounts.

The spread on European euro denominated BB- rated corporate bonds has, for instance, increased sevenfold compared to the spread in the spring of 2007.

The euro spread is the extra interest earned above what a top quality major market government bond Such bonds are considered a baseline of safety. Risk premium is measured by how much more a bond will yield than these safest bonds.

The chart below shows that in 2007 investors could earn 3% more than the safest bonds. Now they can earn 7% more.

multi-currency-bond-spread

This large sell-off in reasonably safe bonds is due to investors’ search for liquidity. This falling price on these better credit corporate bonds creates a golden opportunity for long-term investors.

Take for example, a Gazprom bond denominated in euro with a 7.8% coupon (interest rate) that matures 27-09-2010 (September 27, 2010). This bond in the energy sector has a A3 / BBB but is selling at the discounted price of 97.50 which creates a 9.2% yield or 6.03% over the safety baseline.

All investments have risk…now more so than in most times. The key to good investing is to make sure you are paid an adequate premium for taking the risk.

As we look at examples above and below, remember that rates change continually so earnings an investor can actually make, may be more or less depending on rates at the time of investment.

In the Gazprom example above, a €9,750 investment on September 27, 2008 returns €11,840 over two years. €1,840 in interest and €10,000 in maturity September 27, 2010.

Let’s now look at a US dollar example of a Gazprom bond.

The 7.93% June 28, 2013 Gazprom issue is offered at the discounted price of 82.25. his creates a yield of 13.08% which is a premium of 10.64% over a US Treasury bond. Investors would pay $8,225 for the $10,000 bond in this example. The bond would then pay $793.30 per annum interest through June 2013. In 4.5 years this is a total interest earning of $3,600. Plus the bond, at maturity returns $10,000 or a total return. This creates a total return of $13,600 on the $8,225 investment. Over the four and a half years the total profit is $5,375 on $8,225 invested or 65.34% (about 14.52% per annum).

This is an excellent return for investment grade bonds.

In addition investors with $100,000 to invest can create a multi currency sandwich by borrowing up to one time the investment. US dollar loan interest is in the 4% range.

Imagine the example of an investor who invests $100,000 in December 2008, (used to make the calculation an easier 4.5 years, Dec. 2008 to June 2013) plus borrows $100,000 and invests the entire $200,000 into bonds of this type.

Assuming this same discount prevailed at that time, $200,000 would buy about $242,000 of such bonds at the discounted $82.25 price. The total interest earned from the bonds from now to June 2013 would be about $86,350 minus an interest cost of $18,000. This leaves $68,350 of net interest earned.

Plus of course $242,000 is paid back at bond maturity. The loan repayment would be $100,000 leaving $142,000. The total earnings on the original $100,000 invested would be $68,350 plus $142,000. The investor gets $210,350. This is a total net profit of $110,350 above the original $100,000 invested. This is a 110.35% total return or about 24.52% per annum over the 4.5 years.

There is no currency risk in the loan because it is in US dollars and the investment is in dollars as well.

What are the risks?

One risk is that the interest rate on the loan could rise. In this case you would normally just sell bonds to pay off the loan if the interest rate of your loan rose higher than your yield.

However there is another risk…normally one so remote we would barely mention it. With such short term bonds the capital value of good and even medium risk borrowers would hardly ever fall, unless there was some special corporate misfortune. Never would we expect all investment grade bonds to lose much capital value.

These are not normal times though. This is why we may never see such a guaranteed profit potential with such a low risk again.

However in the short term, if liquidity continues to tighten the yield on such bonds could rise even more and their capital value fall further. Be sure to review your liquidity needs with your investment advisor. You do not want to be caught having to sell at the wrong time. Plus if you leverage though a loan…never leverage more than you can afford to lose.

In a real time situation investors would also normally diversify into more than one bond for greater portfolio stability.

I have been sending my Multi Currency Course subscribers a seven chapter report about the bond potential now. This report contains a review of many bond recommendations. You can have this report as a multi currency subscriber. Learn more about how to subscribe to our multi currency course.

You can invest in the bonds mentioned above via Jyske Bank (American investors can use Jyske Global Asset Management JGAM).

I just finished a long meeting with Thomas Fischer at JGAM to review the updated services that JGAM. JGAM now has an advisory service so US investors can invest in multi currency seasoned bonds. Based on what I learned about the new services Jyske offers Americans, I am personally investing $1 million in a new program to help my multi currency course subscribers understand how to use these services.

You learn how to use this million dollar program when you subscribe to our multi currency course.

Jyske Bank’s Safety Rating

Jyske Bank is Denmark’s second largest bank and I have worked with them for over 20 years. They are my main bankers and investment advisors and have in depth multi currency investment experience.

On October 10 2008, Moody’s affirmed Jyske Bank’s long-term Aa2 rating stable rating. The affirmation of the ratings reflects Jyske Bank’s strong domestic retail and commercial banking franchise, current good asset quality, strong capitalization, and strong risk management. This decision came despite the deteriorated economic prospects in Denmark, particularly in respect of the property market.

New Danish Government Bank Guarantee

Also on Friday 10 October 2008, Jyske confirmed that it had no exposure to Iceland debt. In addition the Danish Parliament passed a bill that secured all deposits and unsecured claims against losses in Danish financial institutions. The agreement was designed to reassure both depositors and the banking community. It is up to each bank to decide to join the new guarantee scheme. Jyske Bank announced that it will join the new government guarantee scheme. During the two-year programme, banks cannot issue dividends, make share buy-backs or establish or renew share option schemes for managers. The rating of the Kingdom of Denmark is Aaa/AAA with Moody’s and Standard & Poor’s respectively.

For more details on how to buy multi currency seasoned bonds at Jyske bank aand JGAM contact:

US investors contact Thomas Fischer at fischer@jgam.com

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

Until next message, may your multi currency investing bond with high profits.

Gary

There is great beauty here in the Blue Ridge as the leaf change begins to take hold. Here is my front yard view now.

multi-currency-purpose

The salmons and gold mean its time to think SOUTH, WARM and SUNNY. This will be my Cotacachi Ecuador view soon.

Join Merri, me, Steve, Kjetil Haugan and Peter Conradsen of Jyske Global Asset Management in Cotacachi Ecuador. We’ll review economic conditions, Ecuador real estate, my entire portfolio, seasoned bonds and investing and business ideas for the months ahead.

Our delegates have a great time as they learn. Here is last week’s group enjoying an organic wine and cheese reception after the course at Bohemia Gallery and Cafe in West Jefferson North Carolina.

multi-currency-seminar-delegates

Nov 7-9 2008 International Investing and Business Made EZ Ecuador
http://www.garyascott.com/catalog/international-business-made-ez-ecuador

Stay on for the real estate tour Cotacachi and surrounding areas. See wonderful condos like this for sale at $46,000 in Cotacachi.

multi-currency-Ecuador-condos

Nov 10-11 Cotacachi-Imbabura Real Estate tour
http://www.garyascott.com/catalog/ecuador-real-estat

Then travel to the coast. See Vistazul condos like this for $89,000.

Ecuador-beach-condo

With this clubhouse view.

Picture 9

November 12-15, 2008 Ecuador Coastal Real Estate Tour; Quito Real Estate Tour
http://www.garyascott.com/catalog/ecuador-coastal-real-estate-tour

See discounts for two or more of these courses and tours

JGAM Questions II


Multi currency investing becomes increasingly important as US  debt and spending cause the US dollar to fall.

As greenback weakness grows, so too does the need to diversify into other  currencies.   Yet the greater this need, the more the US government will  attempt  to regulate investors who diversify abroad.

This makes multi currency investing harder because more and more banks abroad are refusing to accept US customers due to the complicated regulations.  Recent messages at this site shared how the large Dutch, German and Austrian banks have stopped accepting US customers.

I am very pleased that Jyske Bank, my banker for about 25 years, has decided to stand by its American customers. The bank created a wholly owned subsidiary Jyske Global Asset Management (JGAM) that is registered with the SEC.

The changes, however, create many questions which I am answering at this site. Please send your questions.

As a financial publisher, I cannot give independent advice.  I cannot even give personal replies or comment on  personal investment or portfolio questions.

I can, however, answer questions here at our site.

You can see the first question and answer at http://www.garyascott.com/2008/06/14/2150.html

Here is Jyske JGAM question and answer #2.

QUESTION

“Gary, I just got the application papers to sign for JGAM to manage my account. One of the choices is a check box if I want to invest in US securities. Should I check this box? I thought the main reason to invest with JGAM is to be out of the dollar?

ANSWER

I have answered yes because there may be times when the dollars rises and I have most of my portfolio there. if you have just your non dollar portion, then you should answer no.

I wrote about the W9 clear back in 2001. See  http://www.garyascott.com/2001/02/16/164.html
and http://www.garyascott.com/2002/01/18/789
and http://www.garyascott.com/privacy/60/index.html

For non US readers this is not important as a W9 is not required.

Jyske communications Update.

If you have further questions on this, you should communicate directly with Jyske Bank.

US residents and citizens should contact Thomas Fischer at this new address:

Jyske Global Asset Management
Vesterbrogade 9
DK-1780 Copenhagen V, Denmark
Tel.    +45 89 89 59 03
Fax    +45 89 89 59 01
fischer@jgam.com
www.jgam.com

Non US citizens and residents should contact

Mr. Rene Mathys
Tel: +45 8989 6232
Fax: +45 898 6194
E-Mail: mathys@jbpb.dk

Until next message, good international investing to you.

Gary

Learn over the internet from our Multi Currency Portfolios Course On-line

Learn about our next International Investing and Business Course in North Carolina

International Investing and Business Made EZ Ecuador