Ecuador Residence & Triple Protection


Ecuador residence may be good idea for many… but I do not recommend investing everything in Ecuador.

Our recent article Ecuador and the US dollar outlined how I am short the US  dollar via dollar loans and hold euros, emerging currencies and Ecuador real estate.

ecuador-sunrise

The sunshine always shines somewhere.  Sunrise from our condo in Cotacachi.

After reading this, one might wonder why such a spread?

The first book I wrote in the 1970s was “Passport to International Profit”… not “Passport to Ecuador Profit”… not “Passport to US Profit”… not “Passport to European Profit”.

The core message in “Passport to International Profit” was become a one man multinational with a six point command posture which is to:

Live in one country
Bank in a second country
Invest in many countries
Earn in two or more countries
Use a company incorporated in a fifth country
Take a second residence

Let’s take this one step further. To have a fulfilling six point lifestyle posture:

Live in one country you love.
Bank in a second country that is safe and that you really enjoy.
Invest in many countries you would like to explore or feel good about.
Earn in two or more countries you would like to explore or feel good about.
Use a company incorporated in a fifth country that best fits your circumstances.
Take a second residence in a place where you love and want to be.

Merri and I have followed this advice throughout our business career.

ecuador-sunrise

The sun always shines in more than once place.  Sunset from our apartment in San Clemente Ecuador.

We have always had a place in the US…  always in small towns by the way… Naples Florida when it was a small fishing village… Murphy and Lansing North Carolina and now Mt. Dora Florida.

A recent article Smalltown USA Revisted said: Finally we get to revisit Smalltown USA. As Merri and I begin our 42nd year of international investing and business seminars and publishing, we gain great comfort and enthusiasm from the  feel of how our efforts in this last seven year cycle progressed. 

First we are excited that in this upcoming seven years we can expand our focus on Small town USA as well as global investing and Ecuador.

I doubt things will get so bad in the US that Merri and I would not want to live there anymore.

ecuador-sunrise

Follow the sun.  Sunrise from our Blue Ridge North Carolina house.

I have options because I am diversified. Yet the options fit my particular lifestyle and do not cost me anything if events where I live, as expected turn out positive.

The US is central to our family.  Our new home in Florida was chosen in part because it is near our eldest grandson who we feel at age seven can benefit from quality time with us.  The US is a country we love and know and as US citizens we have certain rights even if they have greatly diminished.  Plus the US can be a great place to be.

ecuador-sunrise

Follow your sun. Lake County Florida sunset… our newest home.

However Ecuador is wonderful as well. Ecuador is 3 hours and 45 minutes from the US and we enjoy being in Ecuador for many reasons.

Ecuador gives us great weather in the winter and we love the people and the place. Ecuador is not a bunghole we have chosen because  we dislike or fear some other place.  Ecuador is a place we love.

I doubt that things will get so bad in Ecuador that we will not want to live there.  I doubt even more that things will get so bad in BOTH Ecuador and the US that Merri and I could not stay.

There is always something we do not know, sooo…  just in case, here is a photo from my passport.  This is the stamp you get when you are allowed to reside permanently in the UK.

I can always live in the UK and from there, because of European regulations,  I can pretty well live anywhere in the European Union.

Life in Europe would be our third choice.

ecuador-sunrise

The sun does shine in England… as evidenced by this shot our son Jake took near his home in Bristol.

This also fits into our lifestyle.  Merri and I have both lived there for years. We are both multi lingual… me a bit, Merri more than me.  She can get by in Spanish, German or French.  We have children who live in England and expect to have grandchildren living there some day.

Yet if Europe is our third choice…why are euros our first choice currency that is so overweighted in our portfolio?

We do not have to invest in the country where we live.  I believe that the huge US debt and deficits will drag the US dollar down.   I have even less confidence in the Ecuadorian government’s fiscal capability.

Here is the interesting part of my currency choice. I do not particularly like the euro either.

So why so many euros?

The euro to me is the best of several bad choices.

As shown above. The euro represents the biggest economy in the world.  This is one reason for the choice.  The alternatives are BRIC currencies (Brazil, Russia, India and China).  They are represented (and are likely to increase) in the emerging portion of my portfolio.   But I cannot gain enough confidence in these countries to go beyond a 25% weighting.

So the euro wins by default.

I also like the fuddled aspect of European politics… as I do Ecuadorian politics.  Both have so many diverse interests pulling in opposite directions that the political process is slowed.

No government action seems to be much better than efficient bad activity such as we have seen in the US.

We live in a time of incredible opportunity and freedom. There are probably dozens of places where each of us could enjoy living, investing and doing business.  There is no need to look for the one perfect place.  In fact, such a Utopia probably does not exist.

There are however many places like Smalltown USA, Ecuador and Smalltown Europe where one can enjoy living full or part time and gain lifestyle diversification.

Also do not look for the perfect place to live, or the one and only business to do or the best investment of all forever.   Our circumstances and countries, institutions and relations change.

Diversification gives us a greater ability to change too.

The greatest asset for diversification is the ability to earn wherever you live and to keep your investments safe.

This is why we offer our course Tangled Web… How to Have an Internet Business as well as this multi currency service.

A clear mind and sound body is also a vital tool for embracing change which is why we have added an optional, extra day (at no added cost) to our upcoming International Investing and Business course. The one day Quantum wealth workshop looks at how to gain super thinking and better health to assist in making wiser investing and business decisions.

We hope you will join us.

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

Gary

How We Can Serve You

How to Have Real Safety in 2020

The most important investment you can make in 2020, is in yourself. 

Invest in more time.  Invest in less stress. Invest in greater security.That’s why four years ago we created the Purposeful Investing Course (PI) because when it comes to finances, there are only three reasons why we should invest.  We invest for income.  We invest to resell our investments for more than we had invested.  We invest to make our world a better place.

We should not invest for fun, excitement or to get rich quick, or in a panic due to market corrections.

The core model portfolio we teach in the PI Course rarely changes, but is highly diversified in thousands of shares around the world… so there is higher long term profits, less stress and greater safety.

The portfolio consists of 19 country ETFs.  During the four years since we created the Purposeful Investing Course and set up a $40,000 real time portfolio at Motif Brokers, we have held the same 19 shares and have only traded three times.

The portfolio started with $40,000 and has risen to $53,591 ($49,015 in shares and the balance in accumulated cash).

The portfolio did really well from 2015 to 2018, better than the DJI Index.  Then as the US dollar grew in strength it fell behind.

The chart below shows the actual results of thos portfolio compared with the S&P 500.

motif

 

This good value portfolio above is based entirely on good value financial information and mathematically based safety programs developed around investing models that date back 91 and 24 years.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets developed combining my 50 years of investing experience with study of the mathematical market value analysis of Keppler Asset Management.

In my opinion, Keppler is one of the best market statisticians in the world.  Numerous very large fund managers, such as State Street Global Advisers, use his analysis to manage over $2.5 billion of funds.

The Pifolio analysis begins with Keppler who continually researches international major stock markets and compares their value based on current book to price, cash flow to price, earnings to price, average dividend yield, return on equity and cash flow return.  He compares each major stock market’s history.

Fwd: keppler

Michael Kepler CEO Keppler Asset Management.

Michael is a brilliant mathematician.  We have tracked his analysis for over 20 years.   He continually researches international major stock markets and compares their value based on current book to price, cash flow to price, earnings to price, average dividend yield, return on equity and cash flow return.  He compares each stock market’s history.  From this, he develops his Good Value Stock Market Strategy and rates each market as a Buy, Neutral or Sell market.  His analysis is rational, mathematical and does not cause worry about short term ups and downs.  Keppler’s strategy is to diversify into an equally weighted portfolio of the MSCI Indices of each BUY market.

This is an easy, simple and effective approach to zeroing in on value because little time, management and guesswork is required.  You are investing in a diversified portfolio of good value indices.

A BUY rating for an index does NOT imply that any stock in that country is an attractive investment, so you do not have to spend hours of research aimed at picking specific shares.  It is not appropriate or enough to instruct a stockbroker to simply select stocks in the BUY rated countries.  Investing in the index is like investing in all the shares in the index.  You save time because all you have to do is invest in the ETF to gain the profit potential of the entire market.

To achieve this goal of diversification the Pifolio consists of Country Index ETFs.

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

A country ETF provides diversification into a basket of equities in the country covered.  The expense ratios for most ETFs are lower than those of the average mutual fund as well so such ETFs provide diversification and cost efficiency.

Here is the Pifolio I personally use.

70% is diversified into Keppler’s good value (BUY rated) developed markets: Australia, Austria, France, Canada, Germany, Hong Kong, Italy, Japan, Norway, Spain, Singapore and the United Kingdom.

30% of the Pifolio is invested in Keppler’s good value (BUY rated) emerging markets: Brazil, Chile, China, Colombia, the Czech Republic, South Korea, Malaysia and Taiwan.

The Pifolio consists of iShares ETFs that invested in each of the MSCI indicies of theseall good value BUY markets.

For example, the iShares MSCI Australia (symbol EWA) is a Country Index ETF that tracks the investment results the Morgan Stanley Capital Index MSCI Australia Index which is composed mainly of large cap and small cap stocks traded primarily on the Australian Stock Exchange mainly of companies in consumer staples, financials and materials. This ETF is non-diversified outside of Australia.

iShares is owned by Black Rock, Inc. the world’s largest asset manager with over $4 trillion in assets under management.

The fact that the Pifilios are invested in all the shares of the MSCI Index in each good value market reduces long term risk.

When the US stock market bull ends, know one knows for sure how long or how severe the correction will be.

When the bear arrives, what will happen to global and especially good value markets?

No  one knows the answer to this question.

What we do know is that the equally weighted, good value market Pifolios have the greatest potential long term and that math based trailing stops can be used to protect against a secular global stock market correction when it comes.

My fifty years of global investing experience helps take advantage of numerous long term cycles that are part of the universal math that affects all investments.

What you get when you subscribe to Pi.

You immediately receive a 120 page basic training course that teaches the Pi Strategy.   You learn all the Pi strategies, what they are, how to use them and what each can do for you, your lifestyle and investing.

You also begin receiving regular emailed Pifiolio updates and online access to all the Pifolio updates of the last four years.  Each update examines the current activity in a Pifolio, how it is changing, why and how the changes might help your investing or not.

Included in the basic training is an additional 120 page PDF value analysis of 46 stock markets (23 developed markets and 23 emerging stock markets).  This analysis looks at the price to book, price to earnings, average yield and much more.

You also receive two special reports.

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

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

The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar.  The two conditions are in place again!

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

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

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

This report sells for $29.95 but in this special offer, you receive the report, “Three Currency Patterns for 50% Profits or More” FREE when you subscribe to Pi.

Plus get the $39.95 report “The Silver Dip” free.

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

In September 2015, I prepared a special report “Silver Dip 2015” about a silver speculation, leveraged with a British pound loan, that could increase the returns in a safe portfolio by as much as eight times.  The tactics described in that report generated 62.48% profit in just nine months.

I have updated this report and “Silver Dip” report shares the latest in a series of long term lessons gained through 40 years of speculating and investing in precious metals.  I released the 2015 report, when the gold silver ratio slipped to 80.  The ratio has corrected and that profit has been taken and now a new precious metals dip has emerged.

I have prepared a new special report “Silver Dip” about a leveraged speculation that can increase the returns in a safe portfolio by as much as eight times.

You also learn from the Value Investing Seminar, our premier course, that we have been conducting for over 30 years.  Tens of thousands of delegates have paid up to $999 to attend.  Now you can join the seminar online FREE in this special offer.

This three day course is available in sessions that are 10 to 20 minutes long for easy, convenient learning.   You can listen to each session any time and as often as you desire.

The sooner you hear what I have to say about current markets, the better you’ll be able to cash in on perhaps the best investing opportunity since 1982.

seminars

Tens of thousands have paid up to $999 to attend.

In 2020 I celebrate my 54th anniversary in the investing business and 52nd year of writing about global investing.  Our reports and seminars have helped readers have better lives, with less stress yet make fortunes during up and down markets for decades.  This information is invaluable to investors large and small because even small amounts can easily be invested in the good value shares we cover in our seminar.

In this special offer, you can get this online seminar FREE when you subscribe to our Personal Investing Course.

Triple Guarantee

Enroll in Pi.  Get the basic training, the 46 market value report, access to all the updates of the past two years, the two reports and the Value Investing Seminar right away. 

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

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

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

#3:  You can keep the two reports and Value Investing Seminar as my thanks for trying.

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

Subscribe to Pi now, get the 130 page basic training, the 120 page 46 market value analysis, access to over 100 previous Pifolio updates, the “Silver Dip” and “Three Currency Patterns For 50% Profits or More” reports, and value investment seminar, plus begin receiving regular Pifolio updates throughout the year.

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

Gary



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