Ecuador Weddings & Major Market Equity Value

Ecuador weddings? This is a novel idea that may make sense.

Merri and I have hosted the occasional wedding at our North Carolina farm…just for neighbors…

One couple was married here in front of our covered bridge.

Another was married next to one of waterfalls, where they enjoyed playing as children.

These events were really fun so when I arose one recent morning at our Ecuador beach apartment here…

and saw from my balcony this view, set up for a wedding at Pamazul, I…

started thinking. “How about a wedding in Ecuador?”

I have four daughters so know what a wedding can cost and wondered, “Wouldn’t they be better and less expensive here?”

The setting can’t get much better.

Jessica Haugan, owner of Palmazul, gives special low hotel room rates to wedding parties (how does $40 a night for beach view rooms sound?). Plus Visatzul condos will be ready in January for renting.

You can see from some photos taken at the wedding that the amenities are first class as well…the settings.

The food…

the flowers.

Add this together with the low cost air fares to Ecuador…hmmm. See Cotacachi air fares.

The information above is an excerpt from today’s Ecuador Living Update which included Ecuador wedding contacts and a wedding menu from Palmazul. You can get this update as an Ecuador Living subscriber. Subscribe here.

Here is an excerpt from our other subscription service: www.multicurrencyinvest.com

Tracking the portfolio of the State Street Global Advantage Major Market Fund is one way to track global investing value.

State Street is one of the world’s largest fund managers. Keppler Asset Management, a leader in analyzing market value, selects good value major markets. State Street then selects good value shares in these markets.

The State Street Global Advantage Funds are only available to non US investors, but all of us can gain insights by studying the portfolio breakdown of these funds. Non US investors can invest in the funds.

US investors can recreate the portfolio by buying the shares in equal proportions.

The current breakdown of invested countries (December 2008) of the State Street Global Advantage Major Market Fund is:

Countries Percent of Portfolio
US                       9.8%
UK                    10.2%
Spain                  9.6%
Singapore         10.3%
Norway               8.3%
Italy                   9.5%
Germany            9.8%
France                9.8%
Belgium              9.8%
Austria                9.3%
Cash                   1.5%
Other    2.6%

By comparing annual performance of the State Global Advantage Major Market Fund (MMHF) to the Morgan Stanley Capital Index Global Stock Index (MSCI) we can see how the good value approach consistently outperforms the global average…plus volatility has been lower.

State Global Advantage Major Market Fund Performance

Year           2003       2004      2005      2006     2007      YTD
MMHF      17.38%    16.74%   27.50%   21.56%    2.08% -40.74%
MSCI        10.74%      6.46%   26.17%     7.40%   -1.66% -33.81%

We can also note that value investments tend to drop more during bear markets. This makes sense. Value investors will be buying shares of companies where the price has dropped enough to create extra value. No one can predict when markets will turn. Value investors will tend to buy on the way down…thus making short term performance worse than the norm. Value investing is long term investing. Value investing is the most dependable type of investing but not in the short term.

We can see this phenomenon even at Berkshire Hathaway, the legendary value fund.

Berkshire Hathaway Performance

Period        Actual(%)    vs. S&P 500 (%)    Rank In Industry    Industry Rank
4 Week       – 6.15               0.10                       62                       39
13 Week    -10.04             -3.55                       51                        47
26 Week    -11.17             -3.05                       56                        83
52 Week        6.03             27.52                       92                        41
YTD           -16.14             -3.32                       51                        91

Rank is a percentile that ranges from 0 to 99, with 99 and shows that Berkshire Hathaway which has been the best value fund have been among the worst in a sector (value conglomerates) that has been under performing the market as a whole.

This excerpt came from today’s multi currency course update. You can have the full update with investment contacts and list of shares in this portfolio as a multi currecy course subscriber. You can subscribe here.

Until next message, may all your investments and good value be married and be good.

Gary

Learn more about value investing at our courses in North Carolina, Cotacachi or on Ecuador’s coast this winter.

Take a hike with me in the warm Cotacachi winter’s sun.