Broader Borders


Forceful borders do not protect us.  In fact they do us harm… often a lot of hurt.

Recently I drove back from the farm to our home in Florida.  I can tell you, moving from the 70s degree weather in the Blue Ridge back to a heat index near 110 is not good.

Another thing beyond the heat that especially bothered me, was the border check at the Georgia Florida border.   The procedure was simple.  I just had to identify the city where I started my journey.  Then I was on my way.  God knows what would have happened if I had started in the wrong city.  A stick stuck up my nose, I would guess.

And I get it… everyone is worried about the COVID-19 spread.

Yet Florida has had border checks almost since the pandemic began and is now one of the worst states for having new cases of COVID-19.

WBALTV News reported: Experts have raised alarm about Florida’s climbing cases, saying the state could become the next U.S. coronavirus epicenter. On Saturday, Florida reported 4,049 new cases — the most reported in a single day.

The New York Times read:   Florida’s Covid Cases Up Fivefold in 2 Weeks: ‘The Numbers Are Scary’.  A surge in coronavirus cases has prompted officials to prohibit alcohol sales in bars and close Miami beaches for the coming holiday. But will it be enough?

So I am thinking that the border is costing a lot of time and energy and not doing much good

Almost 40 years ago I wrote my first book, Passport to International Profit” that recommended becoming a citizen of the world.

That was good advice.  Jet travel and numerous advances in communication helped create a global economy that was stronger than ever before.  Investors who put their money in the global market place made a fortune.

Beyond the investing benefit, that book looked at the natural power of being global and the dangerous nature of forceful borders.

I was especially disturbed to read that the border to England is blocked or Americans at this time.  We are not allowed into England due to the rising cases of COVID-19 in our country.

My children and grandchildren are a huge part of my life.  They live in Oregon and England as well as Florida.

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Granddaughters in Oregon

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Grandson in Florida

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Children and grandchildren in England

Global is good.  We are all living together on a single planet, which is threatened by our own actions. If we don’t have some type of global cooperation, nationalism is just not comprehensive enough to tackle the problems, whether its climate change, terrorism, a pandemic, racial inequity or technological disruption.

But evolution has made humans a xenophobic creature.  We think in terms of ‘we’ and ‘they’.  Tolerance is not our greatest trait.  We tend to focus on small differences… skin color, dialect or religion.  Little differences  has been enough for one group to try and kill off the entirety of another group.

But all politics are local and savvy (not wise) politicians recognize that promoting fear and hate and anger at the “theys’ can produce votes.

That’s why so many closed borders is bothersome to me.  Borders can do great harm.  They are expensive.  They are counter productive.  They are the epitome of force.

We have seen 70 years of global expansion that has created more material wealth than humans have ever possessed. 

This wealth, regretfully, has not been spread around enough to stave off the forces that are now trying to grab small pockets of influence.   Establishments (governments, businesses, religions, social structures) everywhere are failing and their response is to lock in the locals and blame others beyond the border.

Have no doubt… borders are really more about locking you in, than keeping others out!

Force has an insatiable appetite, constantly consumes and always creates a counter force.  Create a border and you’ll make a smuggler.  The first task of a border is to stop competition from coming in.  Once those within the border reach out to gain the benefits outside the border, the second task becomes to stop you from getting out.

I don’t see how to change these facts, but there are things we can do as individuals to adapt to the losses we are suffering and will suffer from increased and tightened borders.

That’s why our Purposeful Investing Course focuses on mathematical value of 46 stock markets around the world without much regard to the other factors.

We can still invest where we get the best value, despite borders.  The latest rankings in our study of 46 stock markets around the world shows that shares listed on the US stock market sell for double and even triple price to book of good value markets.  The US average dividend yield is less than half of most of the good value markets.

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This is a time of turmoil and anarchy.  Structures of all sorts that have provided stability for decades are crumbling and as they erode, they’ll strike back forcefully to maintain control.   Expanded and tightened borders is one of the tools they use.  Be aware that a wall, fence, moat or checkpoint is not a sign of success, but of failure.

Adapt. As globalism shrinks, become global, gain broader borders anyway you can.

Gary

Coronavirus and the Stock Market Round One is Done

Coronavirus and the stock market.  Round Two is coming.

This virus and the market faced off in the spring.  The market won.  As the chart below shows, after a huge March 2020 collapse, by early June, the DJIA was back to its December 2019 level.

stock chart

The market’s back up, but history suggests that we’ll see volatility in the ten years ahead.

Here is a chart of the Dow Jones Index for the past three decades.  The .dotcom bubble burst just before the beginning of the 2000 decade.

microtrends.com

The market then went nowhere from 2000 to 2014.   Finally it started reaching new high levels.

Such decades long sideways movement after a severe correction is nothing new in the stock market.

So everything’s in order… except the pandemic.  The ravages of the coronavirus dramatically increase the unknown and this uncertainty is the greatest purveyor  of weakness that a stock market can have.

How do we maximize the return on your savings and investments during this extremely dangerous time?

For the past four and a half years, my strategy, to protect against the next stock market crash and yet gain income and appreciation from rising share prices is to invest in an equally weighted portfolio of the value based country ETFs.

We track 46 stock markets around the world in our Purposeful Investing Course to determine which markets offer the best value so we can be in a perfect position to take advantage of stock market corrections all over the world.

Since no one knows what the future will bring, investing in value makes the most long term sense.

Our Purposeful Investing Course (Pi) teaches 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.

Sticking to math based stock market value and country ETFs eliminates the need for hours of research aimed at picking specific shares.   Investing in an index is like investing in all the major shares of the market.  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 Pi portfolio 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 held at the beginning of 2019.  Now I am updating my plan to decide when it’s best to invest more.

70% is diversified into developed markets: Austria, Canada, France, Germany, Hong Kong, Italy, Japan, Norway, Singapore, Spain and the United Kingdom.

30% of the Pifolio is invested in emerging markets: Brazil, Chile, China, Colombia, the Czech Republic, South Korea, Malaysia and Taiwan.

iShares Country ETFs make it easy to invest in each of the good value markets.

The ETFs provide incredible diversification for safety.  For example, the iShares MSCI  Japan (symbol EWJ) is a Country Index ETF that tracks the investment results the Morgan Stanley Capital Index MSCI Japan Index which is composed mainly of large cap and small cap stocks traded primarily on the Tokyo Stock Exchange mainly of companies in consumer staples, financials and materials. This ETF is non-diversified outside of Japan so an investment in the ETF is an investment in hundreds of different Japanese shares.

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

There is an iShares country ETF for almost every market.

You can create your own good value strategy.

I would like to send you, on a no risk basis, a 130 page basic training course that teaches the good value strategy I use.   I call this strategy Purposeful Investing (Pi).  You learn all the Pi strategies, what they are, how to use them and what each can do for you, your lifestyle and investing.

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.

You also receive a 100+ 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.

This year I will celebrate my 52nd anniversary of global investing and 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.

Those five decades of experience have taught me several incredibly valuable lessons.

The first lesson is that there is always something we do not know.

The second lesson is that stock market booms and busts always eventually return to value.

Third, the only sure way to succeed is to use time not timing.

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.

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%.

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but during the pandemic to introduce you to this online course  I am knocking $124.50 off the subscription.

Guarantee

Enroll in Pi.  Get the basic training, the 46 market value report and access to all the updates of the past two years.

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 in the first two months for a full no fuss full refund.

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

Due to the COVID-19 pandemic we have cut the subscription to $174.50.  You save $124.50!

Then because this global recovery is going to take years, we’ll maintain your subscription at just $99 a year rather than $299.  Your subscription will be autorenewed in 2021 at $99, though you can cancel at any time.

Click here to subscribe to Pi at the discounted rate of $174.50

Subscribe to Pi today and you get a year’s subscription to Pi now, get the 130 page basic training, the 120 page 46 market value analysis, access to over 100 previous Pifolio updates, plus begin receiving regular Pifolio updates throughout the year.

Gary