Power of Image & Spin


There has been some confusion about Ecuador’s president Dale Correa. See below how this confusion can help us learn how to make, keep and enjoy wealth wherever we live.

A recent article looked at some of Dale Correa’s problems and Ecuador’s political tension.

world-view
Here is a photo I took of Correa in Cotacachi.  He stayed at our hotel Inn Land of the Sun (Formerly Meson de las flores).  Imagine if I… an ordinary citizen  tried to get could get this close to photo the president of the USA!
In reply to the political tension article a reader replied to this note:

Hi Gary,  I don’t know how that typo came into being (Ralph or Raul would have been more understandable!) but somehow El Presidente has been renamed Dale! This typo is in two places. See below in the summary of the Political Tension article (I changed it to red so you can find it easily), as well as on page three of your article. Best wishes,  Jennifer

My reply to the reader below helps clarify Correa’s name.

Please excuse my lack of clarity.  Rafael Vicente Correa Delgado is President of Ecuador and often referred to in Ecuador as called Dale Correa.

The words Dale Correa represents the idea to “give them the leather belt.”   Correa used this concept and play on words when running for President sayings that he was going to give the old order the belt and drive them out.

Here is what the Spanish translation literally says:

Spanish translation

Spanish translation

Hence the emergence of a Dale joke in Ecuador.  These might be similar to Bama jokes about the President of the USA.

I should have been aware that those who are not involved in daily Ecuador life and who do not know Spanish would know these facts and could be confused and worried. I hope you did not let this minutiae cause you to miss the theme of the message.  Regards.

A recent message New Sucre in Ecuador shared an important political fact… Correa… like President Obama came to office with a strong  mandate because he promised to bring great change to the system… “Dale Correa.” Now many Ecuadorians have lost their confidence or hope (like in America) as the politics seem to remain the same.

An excerpt in the Wall Street Journal entitled: “Ecuador Government Fails To Pass Monetary Law, For Now” by Mercedes Alvaro shows how Correa has not be so good at throwing out the old order and unifying a new order.  This article says:  Ecuadorean President Rafael Correa’s party failed to garner enough votes in Congress to pass a controversial monetary reform bill that would give the central bank the use of deposits to fund investment projects, but it hasn’t given up on the plan.

Correa’s party, Alianza Pais, secured only 59 votes Tuesday, four short of the 63 needed to pass laws in the 124-seat legislature. The failure is Correa’s second recent congressional defeat, after the party was unable to get enough votes in May for a bill to overhaul water usage. He is also struggling to find sufficient backing for communications and education bills.

The president of the legislature, Fernando Cordero, a member of the government party, plans to present the monetary policy reform bill again next week for another vote, since the opposition also lacked sufficient votes to bury it. Some analysts fear the bill, if passed, could compromise the country’s financial stability.  The proposed law suggests the central bank could invest directly in state-owned banks, and would also be allowed to provide liquidity to institutions “with some questionable lending policies and high non-performing loan ratios,” Crespo said. The reforms would also allow the central bank to invest directly in debt issued by local companies, debt that wouldn’t have to be listed on a stock exchange.

Correa’s administration has been rattled by the recent protests against several of its proposed laws, including proposals on hydrocarbons reform, communications, and university education. On Wednesday, Cordero suspended a session to vote on the universities bill amid protests by opposition lawmakers.

Perhaps we are returning to the old system Merri and I were familiar with for the first decade plus we were in Ecuador… where the people rejected presidents quite often.

There are important messages about making, keeping and enjoying wealth we can learn from observing the Ecuadorian political system.

The first is that the nature of politics… especially in big countries… is framed by sound and image bytes.  What we know is slanted by spin.  Most of our politics… are affected by hidden agendas.  In Correa”s case he used the play on his name to suggest that he was going to toss all the old boys out and change the system.  Promises are normally made (to get into office) that cannot be kept.

Then the new administration uses secrets and spins to hide the real facts.

A Time magazine article “Defending the Leaks: Q&A with WikiLeaks’ Julian Assange” by Eban Harrel shows that technology may help solve this problem. It  says:

Q: There’s a collection of newspapers with your picture on the front page. Who is Julian Assange?

I am a journalist and publisher and inventor. In the case of WikiLeaks, I have tried to create a system which solves the problem of censorship of the press and censorship of whistle-blowers across the whole world. As a public spokesman for the organization, I take all the heat and get all the credit. (See the top 10 leaks.)

Do you believe in total transparency? Should governments and individuals be allowed to hold secrets, or should we put everything out there?

Of course there are legitimate secrets. But we must make the default assumption that each individual has the right to communicate knowledge to other individuals. We call up our grandmother, and the government doesn’t listen in. Your mail can be sent, and the government doesn’t open it up. That is our default assumption. There is a community assumption that we can talk to one another freely and that it is right to exchange knowledge about what is happening in the world. Those assumptions are embodied in good jurisprudence.

What we see coming out of the U.S. First Amendment is that Congress shall make no law in relating to restriction of freedom of speech or press. It doesn’t say Congress should make a law to protect the press. It takes the function of political debate and exchange of ideas outside the legislature. There’s a very good reason for that. It was the Federalist papers and the swapping of information that led to the U.S. Constitution and in an ongoing sense to the social structure that creates laws and legislation. It is the communication of information that regulates politics and the legislature, the judiciary and the behavior of the police. It’s quite important to have the default assumption that the free exchange of information should not be regulated except in specific and clear circumstances.

This evolution towards access to the truth away from spin is likely to take time but can offer ways to make money from it.

The reason we are shifting towards transparency is the shift from broadcast to broadband so investments in broad band technology  make sense.

This is a huge filed way beyond description here, but a place to watch… to see the types of technology that is coing online is the “One Economy Corporation” a Washington, D.C. based, global, nonprofit organization that leverages the power of technology to connect underserved, low-income communities around the world to vital online information and resources.

In the long run… the big advances in global communications will be the cuddly interface…  ways to make computer power and communication easier to use.

One economy focuses in this way… founded in 2000 with a mission to ensure that everyone, regardless of income or location, can maximize the power of technology to improve the quality of his or her life and enter the economic mainstream.

One Economy brings broadband into the homes of low-income people, employs youth to train community members to use technology effectively, and provides public-purpose media properties that offer information on education, jobs, health care, and other vital issues.

These initiatives target three barriers to sustained Internet use: affordability, accessibility, and lack of relevant content.

In April 2010, One Economy, in partnership with the Broadband Opportunity Coalition (BBOC), was awarded $28.5 million through the Broadband Technology Opportunities Program, run by the U.S. Department of Commerce’s National Telecommunications and Information Administration. One Economy and the BBOC are supplementing this grant with $23 million of private sector matching support so this organization has some  money to spend that might lead to new broad innovations uses of the internet.

Those who spot and invest in these innovations may well see extra profit as the world moves from image and spin to authenticity.

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

Read the article Defending the Leaks: Q&A with WikiLeaks’ Julian Assange

Link to more data on  One Economy Corporation is a Washington, D.C.