Smalltown USA Auctions


Auctions can help living and prosperity in Smalltown USA.

Luxury Real Estate Auctions

We’ll see a Smalltown USA auction below for a 7,000+ square foot house with this view below.

Our recent message War on Four Fronts looked at social economic problems that could grow in the years ahead.

These problems include inflation and loss of currency purchasing power and the opportunity is in having one’s own micro business… equities… commodities and real estate… as well as finding places where the cost of living is lower… such as Smalltown USA.

Auctions can help during difficult times.

Auctions can help you find good value real estate in Smalltown USA. Here is a good case story about this.

Years ago, (before we developed a web site) one of my printed newsletters told readers about a real estate auction in Crested Butte, Colorado. The story revealed that a Savings & Loan had repossessed a number of condos near a ski lift in Crested Butte Colorado.  I mentioned I was bidding $50,000 for one of these units myself.

My readers outbid me and racked up huge profits! I did not mind a bit. Merri and I are happy any time we can share good investing ideas with readers. This has created a loyalty over many years that is worth more than any profit on a real estate deal.

I received a note about that auction from a reader who who wrote: Hello Gary, I have written you a few times on different topics (and attended one of your Isle of Man seminars a few years back).  Let me tell you about my purchase in Crested Butte Colorado. I bought our first unit there at the Plaza after reading about the auction in your newsletter (in 1991).  I have since sold it as our family grew, and bought a new 4 bedroom townhouse, then a second after the first turned out so well. Then a 3 bedroom condo built by the same developer at another nearby property.

Prices in Crested Butte go up, plateau for a while, then go up a bit more until this year when (in case you hadn’t heard) the owners of the Okemo Vermont and Sunapee New Hampshire resorts bought the Crested Butte resort which due to lack of skiers and in turn lack of investment had fallen on hard times. Real estate prices jumped 20% the month before the deal was closed and most properties on the market were gobbled up.

That letter was written back in 2004 so I expect prices rose a lot more before they then crashed… again.

The point is… during bad times real bargains can be obtained at auctions.

Here is the house to be auctioned.
Upcoming Real Estate Auction
The auctioneer describes the house as: a French Country estate located at the top of a private ridge just minutes from downtown Boone and Blowing Rock. You are given the reality of being immersed in nature, while at the doorstep of all modern conveniences.

Designed following the ancient Indian Vedic Architectural System every living area, bedroom and outdoor living space in this stunning home was arranged to enjoy the abundance of light and magnificent views. Ancient texts propose in detail how, by following the laws of nature, influences may be designed into a home to promote such qualities as prosperity, happiness, health and enlightenment. Along with house orientation, proportions, and spatial relationships, numerous energy efficient systems and construction methods complete this “Green” and healthy home.

Nestled comfortably on the Appalachian Ridge, framed by beautifully sculpted hillsides of heavy trees, this estate raises the bar of residential excellence in Boone. Exceptional quality and comfort abound within the home’s 7,200± square feet. The house welcomes you with a true sense of comfortable elegance.

  • 7,200± Heated sq. ft. Plus 2,000± sq. ft. of Patios and Porches
  • 4 Bedrooms, 3 Full & 3 Half Bathrooms
  • Full Guest Suite with Kitchen, Sitting Room and Private Entrance
  • Located on 20± Acres Atop a Private Ridge
  • Extras Include a Library, Spa Room, Media Room and Huge Bonus Room
  • Minutes to Downtown Boone, Blowing Rock, and World-Class Golf, Fly-Fishing, Hiking, Rafting, Skiing, and Antique & Art Shopping

A friend who knows the project even better says that it will be purchased for a song.

We’ll see. I’ll try to get over and watch the auction… if not at least find out the price and report back to you.

As mentioned, our research on the real estate development above and our relentless desire to find value led us to buy our farm in the Blue Ridge, one county north in Ashe county.

Ashe County was isolated but I saw several distortions… that still exist.

When we research Watauga county we discovered Ashe County and believed it offered better value.   Ashe is a big county with a land area of 426 square miles but has a small population, only 25,702 people as of July 2009 according to the Census Bureau.

First, prices are only a fraction of the county just south (Watauga).

Second, the location is good. Ashe sits almost equidistant from the north and south of the east coast of the United States . The largest, wealthiest migration in mankind’s history has taken place in the last decade into this area. Now one in six Americans live in a county that touches either the Atlantic or Gulf Coast . Merri and I are almost the same distance from our home in Mt Dora Florida and the northernmost parts of the U.S. in Maine.

We bought over 250 acres at less than a thousand dollars an acre.  Today one of our neighbors have cleared timber land (which is a mess) without timber or water for sale at $5,000 an acre. Our land nearby has nearly a mile of wonderful creek and tons of timber. Some land at the height of the market was dor sale market at $23,000 an acre.

Prices are much lower now and I have no idea how our appreciation has been, but it is a lot even after the real estate crash!

We purchased land here and in Florida for the same reasons we began buying and buying in Ecuador, because there were enormous value distortions compared to prices in US and European cities.

I feel that I am a pretty bad investor. Had I kept just two of the houses I bought in London and Naples, I would probably have an extra $8 million. However one cannot look at investing this way. The money from each led to the purchase of the next and each move has enhanced our life style.

The point here is that even if I am a bad investor, seeking value has earned me several million dollars extra. I am grateful for the distortions we can find.

Ashe County real estate investments make sense. For years I have written about the good value here. Prices were still very low compared to other nearby counties.

Now between the recession and the cold 2010 winter Ashe real estate sales have really dropped as this chart shows.

ashe-county-real-estate

This creates very interesting values in this part of the Blue Ridge.

Merri and I moved to Ashe County to get away from the crowds, hustle and bustle of life. Making money in real estate was far from our mind but we have see property prices appreciate rapidly with quite some distance still to go. We have already made a lot of money again. This seems to be the story of our life. We move to a beautiful, quiet place to get away from the crowds and then the crowds follow.

Ashe County adjoins Virginia and Tennessee and is so remote it was once known as the Lost Province .

The county seat is Jefferson and the 25,000 + population is wide spread throughout the county. The only towns are Jefferson (1,300 population), West Jefferson (1,002) and Lansing (183).

This is a totally rural area with three commercial crops, Christmas trees, timber and tobacco. There are several factories in the county manufacturing furniture and electrical goods. There are numerous tourist activities such as canoeing on the New River ( America ’s first Heritage River ), scenic drives though Southern Appalachian Wilderness, leaf gazing and hiking.

Here is why this area offers so much potential:

1. The prices here are a fraction of the county just south (Watauga)

2. The first cappuccino machines arrived in West Jefferson a number of years.  When we arrived I could not find any. Now I know of three.

3. Prices just about doubled before the crash but now as shown have have really fallen.

4. The major road from I-77 has been widened to four and even six lanes.

5. Wal Mart has built a super store and Lowes (home supplies) has opened a huge store as well. Hampton Inn is about to build.

6. The first golf course community just went bankrupt creating some special value there.

7. Art galleries and interior designers had been setting up prolifically in town… but again the recession has created some interesting commercial real estate values.

The art community in Ashe is really great. The beauty, culture, history and future of Ashe County are even captured in downtown murals.

West Jefferson began a downtown mural project in 1996 when McFarland and Company, Inc., Publishers, commissioned local artist, Jack Young, to create the mural “History of Ashe Through the Ages”.


Here is Stephan Shoemaker’s mural “Cut at Devil Stairs”

Marianne DiNapoli Mylet’s “New River Traditions” mural covers another building and features the “Virginia Creeper” train, a family enjoying a picnic along the New River and the natural beauty of our area.

Plus the town is progressive. This mural has its text in Spanish as well as English, “unity and diversity” it says!

The Ashe County Arts Council was instrumental in establishing “The Arts District” in downtown West Jefferson.

This is why we have tow of our courses each year in Ashe County.  Our June 24 to 27, 2010 Quantum Wealth course will be conducted at the brand new Hampton Inn.

In this way you’ll not only gain vital international investing and business information, but get ideas about West Jefferson and Ashe County investments as well.

You can enjoy West Jefferson, plus on Sunday we’ll have you out to the farm to enjoy afternoon tea and our natural wilderness. Here are some delegates walking up to the house at a previous course.

We hope to see you along with Peter Laub of Jyske Bank, David Cross my webmaster, Jean Marie Butterlin who conducts our Ecuador real estate tours, Bonnie Keough, who conducts our Ecuador export tours, Jeff Neil an Ashe County real estate broker, Bob Shane our quantum health expert and Professor Ann Robert Russell who is teaching us the ancient, rare Tibetan Yoga Tsa Lung/Trul Khor  as received from Tenzin Wangyal Rinpoche and Alejandro Raoul.

Future problems include inflation and loss of currency purchasing power and the opportunity is in having one’s own micro business… equities… commodities and real estate… as well as finding places where the cost of living is lower… such as Smalltown USA.

Learn more about good value micro businesses in coffee here.

Gary

How We Can Serve You

How to Have Real Safety

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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.

This is why the core Pi model portfolio (that forms the bulk of my own equity portfolio) consists of 19 shares and this position has not changed in over two years.  During these two years we have been steadily accumulating the same 19 shares and have not traded once.

The portfolio has done well in 2017, up 22.6%, better than the DJI Index.

motif

However one or even two year’s performance is not enough data to create a safe strategy.

The good value portfolio above is based entirely on good value financial information and mathematically based safety programs developed around 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 and the mathematical trend analysis of Tradestops.com.

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, Germany, Hong Kong, Italy, Japan, Norway, 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 the 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.

Pi uses math to reveal the best value markets then protects its positions using more math created by Richard Smith founder and CEO of Tradestops.com to track each share’s trend.

We use Smith’s  algorithms that calculate momentum of the good value markets.

dr richard smith

The Stock State Indicators at Tradestops.com act as a full life-cycle measure that indicates the health of each stock. They are designed to tell you at a glance exactly where any stock stands relative to Dr. Smith’s proprietary algorithms.

Kepppler’s analysis shows the value of markets.  The SSI signal indicates the current trend of each stock (performing well, or in a period of correction, or stopped out).

The SSI tells you one of five things:

Screen Shot 2017-08-08 at 6.51.59 AM

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Akey component of the Stock State Indicator (SSI) system is momentum based on the latest 521 days of trading.  A stock changes from red to green in the SSI system only after it has already gone up a healthy amount and has started a solid uptrend.

How SSI Alerts Are Triggered

If the position has already moved more than its Volatility Quotient below a recent high, the SSI Stop Loss will trigger.  This is an indicator that the position has corrected more than what is normal for this stock.  It means to take caution.

Below is an example of how SSIs work.  This example shows the Developed Market Pifolio that we track at Tradestops.com.

tradestops

Equal Weight Good Value Developed Market Pifolio.

At the time this example was copied, all the ETFs in the Developed Market Pifolio (above) currently had a green SSI.

We do not know when the US market will fall.  We only do know that it will.  We also do not know if, when the US market corrects, global markets will follow or rise instead.

The fact that the Pifilios are invested in good value markets reduces long term risk.

Additional protection is added by using trailing stops based on the 521 day momentum of each stock in the Pifolio.

Take for example the graph below from our Tradestops account that shows the iShares MSCI United Kingdom ETF.  This ETF had a green SSI and a Volatility Index (VQ) of 13.26%.  This means the share can move 13.26% before there is a trend shift.

tradestops

iShares MSCI United Kingdom ETF (Symbol EWU)

Pi purchased the share at$31.26 and in this example the share was $34.43 and rising.  Tradestop’s algorithms suggested that if the price drops to $31.69 its momentum would have stopped and it would have shifted into trading sideways.   The stop loss price is currently $29.86.  If EWU continues to rise, both the yellow warning and the stop loss price will rise as well.

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 two 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 Platinum Dip 2018” 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 added how to use the Dip Strategy with platinum.   The “Platinum Dip 2018” 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 “Platinum Dip 2018” 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 2018 I celebrate my 52nd anniversary in the investing business and 50th 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.

Stock and currency markets are cyclical.  These cycles create extra profit for value investors who invest when everyone else has the markets wrong.  One special seminar session looks at how to spot value from cycles.  Stocks rise from the cycle of war, productivity and demographics.  Cycles create recurring profits.  Economies and stock markets cycle up and down around every 15 to 20 years as shown in this graph.

stock-Charts

The effect of war cycles on the US Stock Market since 1906.

Bull and bear cycles are based on cycles of human interaction, war, technology and productivity.  Economic downturns can create war.

The chart above shows the war – stock market cycle.  Military struggles (like the Civil War, WWI, WWII and the Cold War: WW III) super charge inventiveness that creates new forms of productivity…the steam engine, the internal combustion engine,  production line processes, jet engines, TV, farming techniques, plastics, telephone, computer and lastly during the Cold War, the internet.  The military technology shifts to domestic use.  A boom is created that leads to excess.  Excess leads to correction. Correction creates an economic downturn and again to war.

Details in the online seminar include:

* How to easily buy global currencies, shares and bonds.

* Trading down and the benefits of investing in real estate in Small Town USA.  We will share why this breakout value is special and why we have been recommending good value real estate in this area since 2009.

* What’s up with gold and silver?  One session looks at my current position on gold and silver and asset protection.  We review the state of the precious metal markets and potential problems ahead for US dollars.  Learn how low interest rates eliminate  opportunity costs of diversification in precious metals and foreign currencies.

* How to improve safety and increase profit with leverage and staying power.  The seminar reveals Warren Buffett’s value investing strategy from research published at Yale University’s website.  This research shows that the stocks Buffet chooses are safe (with low beta and low volatility), cheap (value stocks with low price-to-book ratios), and high quality (stocks of companies that are profitable, stable, growing, and with high payout ratios). His big, extra profits come from leverage and staying power.  At times Buffet’s portfolio, as all value portfolios, has fallen, but he has been willing and able to wait long periods for the value to reveal itself and prices to recover.

keppler asset management chart

This chart based on a 45 year portfolio study shows that holding a diversified good value portfolio (based on a  good value strategy) for 13 month’s time, increases the probability of out performance to 70%.  However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.

Time is your friend when you use a good value strategy.  The longer you can hold onto a well balanced good value portfolio, the better the odds of outstanding success.

Learn how much leverage to use.  Leverage is like medicine, the key is dose.  The best ratio is normally 1.6 to 1.  We’ll sum up the strategy; how to leverage cheap, safe, quality stocks and for what period of time based on the times and each individual’s circumstances.

Learn to plan in a way so you never run out of money.  The seminar also has a session on the importance of having and sticking to a plan.  See how success is dependent on conviction, wherewithal, and skill to operate with leverage and significant risk.  Learn a three point strategy based on my 50 years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

The online seminar also reveals  the results of a $80,000 share purchase cost test that found the least expensive way to invest in good value.  The keys to this portfolio are good value, low cost, minimal fuss and bother.  Plus a great savings of time.  Trading is minimal, usually not more than one or two shares are bought or sold in a year.  I wanted to find the very least expensive way to create and hold this portfolio so I performed this test.

I have good news about the cost of the seminar as well.   For almost three decades the seminar fee has been $799 for one or $999 for a couple. Tens of thousands paid this price, but online the seminar is $297.

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

Save $468.90 If You Act Now

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive FREE the $29.95 report “Three Currency Patterns for 50% Profits or More”, the $39.95 report “Silver Dip 2017” and our latest $297 online seminar for a total savings of $468.90.

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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 “Platinum Dip 2018” 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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