Saturday Q & A

Here are our Saturday Question and Answers.

#1: Question on multi currency investing.

#2: Question about China and Russia cutting out the greenback.

#3: Question about renting in Ecuador.

#4: Comment on Super Thinking Spanish.

#5: Question about TSA pat down and XRays.

#1: Question on multi currency investing.. Hello,  I got your multicurrency course last year but this year the JGAM conservative strategy seems to be providing minimal income – only 4% return and after fees only 2%.  What strategies are you suggesting right now that will provide decent returns without too much risk? I have $100K to invest. Thanks

My Reply:  Because there is no magic bullet, yesterday I started a series on investing and terror.

This message pointed out that there are three ways that investors are being screwed.

Inflation is ruining the purchasing power of our wealth.

Western banks are keeping the money they have and the cheap money that the government gives them.  They invest it for more and keep the profits.  With this cheap government money they do not need deposits so traditional safe investments (dollar and euro bonds and CDS) don’t earn enough to protect against inflation.

Trading down keeps inflation down statistically… but means that your income and savings really buy much less.

This means that there are not decent returns available without embracing risk.

The best bets with maximum safety are a spread of bonds in a variety of emerging countries.

Since $100,000 won’t enable you to have a good spread emerging marker bond funds are probably a better bet.  Here are  three top performing funds in this sector that US investors can invest in. Shown is the fund’s name… its code and its performance for the last three months.

GMO Emerging Country Debt III –  GMCDX  – 12.43%
Invesco Emerging Mkt Lcl Ccy Debt Y – IYEMX – 12.35%
Morgan Stanley Inst Emerg Mkts Debt I  – MSIEX – 11.92%

#2: Question about China and Russia cutting out the greenback. Good morning gary.  Have you seen this article about China and Russia cutting out the US dollar?  What the the implications for the buck and , more importantly, the reprecussions for the U.S.?

The article in the China Daily News said:  St. Petersburg, Russia – China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.

“About trade settlement, we have decided to use our own currencies,” Putin said at a joint news conference with Wen in St. Petersburg.

The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.

My reply: This is one more step in the continual 40 year decline of the US dollar.  This will increase inflation and cause imported goods to cost more as the US dollar falls. The solution is to invest out of the US dollar or even short the US dollar as I have been doing and writing about for many decades.

My report “Borrow Low Deposit High” can help develop a multi currency mentality as well as portfolio.


#3: Question about renting in Ecuador. You indicate that it would be proper for individuals to rent before buying in a location in which one is not familiar.  Could you, maybe in your Saturday Q&A, review what the rental market is for a one to three month rental in various locations around Ecuador? Thank you in advance.

I contacted numerous contacts across Ecuador to find out about renting in these areas.

Renting Reply from Bahia: Hi Gary, Yes we have a number of rentals and run from $100 to $800 per month.
The bridge opening was huge. Thousands of tourists and all in fun with no problems.

Renting Reply From Salinas:  December through April is high season in the Salinas area, with rentals at almost 100% occupancy, so it is good to plan well in advance if you are planning to visit in that time frame.  Off season it is usually possible to find a good rental with short notice.

Two properties on the market right now are a brand new, fully furnished 2 bedroom condo at our ocean front Spondylus 2 complex.  The owners purchased it with the intention to use it as a rental, but that doesn’t mean that they cut corners on the furnishings.  There are stainless appliances, custom made hardwood bedroom furniture, hardwood dining room set and sectional seating in the living room with a 32 inch flat screen TV.  The complex has a large pool, jacuzzi, bbq area, sauna and gym.  The unit is listed at $800 per month high season, with discounts available for off-season or long term rentals.

Another great rental is a one bedroom cottage in Ballenita.  It is just a few blocks from the beach on a property that has a huge social area with a pool and bbq area.  The first floor of the cottage has a kitchen, living room and dining area.  The second floor has the bedroom and bathroom.  The cottage has just been refurbished.  It comes furnished, with a/c and Direct TV.  The monthly rate is $650.

For those looking for longer term rentals, we frequently see nice houses just a block or two from the beach renting in the $300 per month range with an annual lease.

Rental Reply From Puerto Viejo: I know of at least three apartments in Crucita and several in Portoviejo.  Prices go from $200 to $500 a month depending on the location and size of the property.

Rental Reply From Cuenca: That’s going to be tough. Short term rentals are not plentiful and are hard to find. However let me do some digging and see if I can come up with a few to highlight. AND it will be important to state up front that by the time they are reading the article the property is unlikely to be available. They will simply be representative of the kinds of things that come on the market from time to time. A year long rental is a bit easier to come up with.

Rental Reply from Quito: I can provide a bit of help as I recently did a web search of available rental properties in Ecuador. There are ten links that have rentals such as

WE help our Premium Ecuador Living subscribers find rentals all over Ecuador and have numerous rental contacts and links .  Learn how to subscribe here.

#4: Comment on Super Thinking Spanish: Hi Gary. Good morning to you, I was reading your Spanish, I recommend to buy one of many courses that they have to learned the second language I’m sorry for recommended because you have a errors in the spelling,this is my suggestion,also thank you for all the information that you has been sending to me regarding how you can do the investments in my country.

My reply: Jorge, You have many errors in your English… but I congratulate you as you are communicating which we believe is what is most important.

Yes after four days of teaching… though our students can already communicate in Spanish…. where most people give up because they do not learn after months…. they make some errors.

So what?

If you wish perfection then you should stop communicating in English as your English has many errors.

Our course is based on the importance of rapid communication not perfection and I believe that if you think about it… you would agree… getting started is more important than being perfect to begin.

Regards, Gary

Learn more about our Super Thinking Spanish course where you can learn Spanish in four days. Click here.

#5: Question about TSA pat down and XRays. The airline situation is a mess right now. There is increasing evidence from experts that the electronic screening methods could very possibly be a health risk when looking at it from a long term stand point. There have been so many things over the years that were said to be safe and then new evidence would point that what was stated as initially safe becomes unsafe as more time and data comes in. So basically one is rolling the dice when going through the electronic screening methods. Of course it’s stated you can have the option of having your body physically fondled instead.

A movement is starting, which I’m sure you have heard about that is encouraging people to boycott flying if at all possible. I feel the same way. I use to fly all the time, but now because of all the things stated above, I will not fly unless it’s an emergency. It’s just not worth it anymore.

I am seeing more and more people talking over the internet that they had intended to move to another country, but now with this huge flying problem, they have changed their mind. Who wants to commute back and forth between and U.S. and other countries having having to deal with these hassles and health issues?  With all this in mind, is there any other method you know of where you could reasonably get back and forth to Ecuador on a regular basis without going through these problems mentioned above?

Your response would be appreciated on this.

Another wrote: My best wishes to you and family on this this day that for sure is full of reasons to be thankful.  Gary, I’m a loyal reader of your daily E zines and highly value your opinion but I’m no sure if I missed any articles on the new TSA  airport security procedures, have you written anything on this subject?  Since you travel often, I like to know if you care to share your take on this matter. If one wants to get on an airplane there are only two choices: a body scanning machine that emits a dosage of radiation so small that they claim should not cause any harm or body search that some people say very invasive.  Would you care to share your approach?  Please give Merri my regards.  Gratefully yours.

My reply.  On this issue… I feel this is much to do about nothing in the little picture. I just flew to and fro across the US last week and nothing different happened.

I am sort of tickled that the TSA is doing this though, because in the big picture this extreme forcefulness has the potential to get so many voters so really angry that they really will force some change.  Let’s not forget Honest Abe Lincoln’s quote… “The way to get rid of a bad law is to enforce it strictly”.

Already USA Today is running articles about the companies who build these machines having spent so much on lobbies.  Another USA Today article suggests that Americans are increasingly favoring the Tea Party, which I think is in part because of this ridiculous regulation that I suspect is more about making money for scanner makers than about increased security.

I am no security expert, but my study of history indicates to me that when people give up their basic human rights for security they give up both. A certain amount of personal space is certainly a human right and pat downs like this violate those rights in my opinion.   That’s the big picture.

In the small picture personally… no XRays for Merri or me. If you have read our reports for some time you’ll know that I was dosed with radiation in the Columbia River and both Merri and I were radiated during the Chernobyl accident. We won’t even let dentists Xray our teeth… which sadly means most US dentists can’t or won’t even clean our teeth. Thank God for Ecuadorian dentists who will.

Re the pat down.  I find 80% of the TSA employees helpful polite and I think they are diligent in their duties. Like in any organization there is that pesky 20%  who have refined the art of making others uncomfortable.

Odds are I won’t ever have to have a pat down and if so, odds are four to one I won’t have to face one of those nasties.

Should I be so unlucky despite the odds in my favor… should  some guy get his jollies fondling a 64 year old guy… then that’s his problem not mine.   I have had customs people hassle me before and the way I handled this was to complain  to my Congressman. He managed to get an internal investigation which at least I have the satisfaction of and at least put my complaint on record.

I would insist in an exceedingly polite way that the person doing the pat down put on a new set of gloves.

In the practical picture, right now flying is the only efficient way to get to Ecuador.  If you fly from or through the USA you face the risk of having to make this option.  This is reason enough for some people to choose to leave the USA.  Others are choosing to stop flying.

One reader wrote: Who wants to fly to Ecuador and put up with this?

Personally I won’t let this process wear me down.  I’ll grin… bear it… remember Abe Lincoln… keep letting my representative in Congress and the airlines know and always be super polite but also will stand my ground if they become too arrogant or forceful.  Nothing a lazy person hates worse than the words. ” SIR, PLEASE let me speak to you supervisor”.

Until some change comes along every person has to decide… flee, fly or not and if you choose flee… you’ll have to risk of a pat down or Xray at least once for now.


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.



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.

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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.


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.

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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.