Tag Archive | "Brazil"

International Investing Value in Turkey & Brazil


There is international investing value in Turkey and Brazil.

Istanbul McDonalds by SpirosK.

McDonalds in Istanbul.

Earlier this week we looked at good value major and good value emerging markets.
We also saw that emerging markets have been and continue to dramatically outperform major markets.

Two of the good value emerging markets I like and have recommended often are Turkey and Brazil.

I last recommended investing in Turkey in July 2010 and followed my own advice.

I am happy about that. The Turkey mutual fund I invested in has soared.

The chart below of the Istanbul stock market from tradingeconomics.com shows why I am taking some profits by selling some of my Turkey mutual fund shares now.

instanbul-stock-chart

I have just reduced my position in Turkey and taken some profits from this July recommendation…. but I have to be honest, I was overweighted and speculating on Turkey which is not what I do often.  I made a nice quick profit and have now sold about half my Turkey holdings.

This message has two messages. First, if you followed my July 2010 thinking… you may want to consider taking some profits now.

Yet this longer term chart shows why I am not selling all of my Turkey shares.

instanbul-stock-chart

The longer term suggestion is that the Istanbul index could well rise quite a bit more as it appears to have passed an opportunity for a head and shoulders fall. Turkey as mentioned is a good value market, plus Turkish Prospects still look good. The Economist published A special report on Turkey October 21, 2010.

Here are excerpts from this report: Turkey has made astonishing progress in the past decade, says John Peet. But how will it fare if the IMF and the EU are not there to keep it on the straight and narrow? It can take decades to change the image of a country. Yet Turkey has managed the trick in less than one.

Ten years ago it was a basket-case. Its economy was both sclerotic and erratic, its banks were bust, and inflation was dizzyingly high. It was forever calling in the International Monetary Fund for help (Turkey has run up some 18 IMF programmes, a near-record). Politics was also worryingly unstable. Even though the country was an established democracy, a string of weak and short-lived coalition governments alternated with the occasional coup staged by a powerful army.

As a member of NATO that was for many years on the front-line of the cold war, Turkey was at least a reliable ally of the West. But its regional influence in 2000 was almost as feeble as its economy. The Turks insisted that they wanted to join the European Union, but they had made almost no progress. Just over a decade ago they were humiliatingly overtaken in the race to be EU candidates by the ex-communist countries of eastern Europe.

Yet ten years on Turkey stands transformed. The economy suffered badly in the global recession of 2009, but over the previous five years it had been unusually vigorous, and it has bounced back so quickly that this year it is likely to grow faster than those of almost all other European countries.

Turkey has largely escaped the Mediterranean sickness that has taken hold in Greece, Spain, Portugal and even Italy. It is on the verge of acquiring an investment-grade credit rating, inflation is in single figures and the government has been able to dump the IMF.

The political situation has also greatly improved. These changes have not gone unnoticed. Turkey is now a vocal member of the G20 club of important economies. It held a temporary seat on the United Nations Security Council in 2009-10. It is knocking on the door of the BRICs club of emerging giants. Some forecasts suggest that during the next decade it will grow faster than any country bar India and China. Others predict it could become the world’s tenth-biggest economy by 2050.

That is partly because of Turkey’s favourable demographic outlook. The average age of its 72m people is only 29, against over 40 in the EU. By 2050 its population will have risen to almost 100m. If by then Turkey has managed to get into the EU, it will be its most populous member, far ahead of Germany, which will have a mere 70m people. (Bolds are mine) But there is more to Turkey than a flourishing economy and a young population. Whereas ten years ago it seemed a peripheral country, now it has become a pivotal one. Its geographical position, wedged between the European landmass, Russia and the Middle East, has given it a new strategic importance, especially in the energy-pipeline business. And its newly assertive foreign policy is making it count not just in neighbouring countries but as far afield as China and Africa.

turkey

Map from Economist special report on Turkey showing existing and new pipelines.

Turkey has an especially significant place in the Muslim world. Thanks to the legacy of Ataturk, it is a rare example among Muslim countries of a functioning secular democracy. Compared with much of the Arab world, it has been hugely successful in economic, diplomatic and military terms. A Turk currently serves as secretary-general of the Organisation of the Islamic Conference. And since his country’s diplomatic spat with Israel earlier this year Mr Erdogan has become a hero to the Arab street. Many Arabs compare him favourably with their own gerontocratic (and undemocratic) rulers.

Part of the report asked if Turkish entry into the EU is a fading European dream?
Turkey has had association agreement with the EEC for decades and many think of Turkey as part of Europe.

However because of Cyprus, domestic politics and the economic crisis that began in 2008 and hit Europe especially hard in 2009,  Turkey’s EU membership negotiations have all but ground to a halt.

However Turkey continues to make reforms that are good for the country and will help it qualify for membership.

Every day that passes Europe needs Turkey more and Turkey needs Europe less so Turkey’s EU aspirations may be diminished not because it cannot join but chooses not to. Turkey has begun entry negotiations and no country that has begun has not eventually been offered membership.  The process can be cumbersome however.

Britain’s application was turned down twice.  Spain took nine years to become a member and Norway was twice offered membership, before accepting.
Eventual membership is likely to be another boost to Turkey’s economy. 
The economy is currently getting a boost from sounder economic management as well.

Turkey learned from its economic meltdown in 2000-01. GDP shrank by almost 6%, the lira collapsed, most of the banks had to be rescued. The IMF had to provide support.

This left Turkey better prepared than many countries when the 2008-2009 recessions kicked in.

Despite the global economic downturn, Turkey’s GDP grew an average of 6% from 2002 to 2006 before the recession.  In inflation is down to 9%. Public debt is below 50% of GDP.

Turkey’s economy is among the OECD’d  fastest-growing and is similar to the fast rising BRICs. Turkey’s economic growth county run third behind only China and India.

Turkish business has been among the leaders to recover from the recession in construction, furniture, textiles, food-processing and car making.

Turkey is now the world’s biggest cement exporter and second-biggest jewellery exporter. Its construction order book is surpassed only by China’s. It is Europe’s leading maker of televisions and DVD players and its third-biggest maker of motor vehicles.

These are risky times and risk management is more important than before.  Part of risk management is getting better premiums such as those available in emerging markets and especially turkey.

The Istanbul Stock Market has risen dramtically.  Yet Keppler still views this as one of nine equally weighted good value markets.  Plus with its young population and growth potential, long term investments in Turkey make good sense.

Learn about how to invest in Turkey and Brazil with Jyske.

US investors contact Thomas Fischer at JGAM at fischer@jgam.com

Non US investors contact Rene Mathys at JBPB at mathys@jbpb.dk

See a win win export opportunity in Ecuador.

Gary

Learn more about investing in emerging markets… especially Brazil and Turkey, Taiwan, Thailand… plus Singapore in my $49 report “Running Risk- How to Invest in Risky Times”

Order my $79 report “Borrow Low Deposit High” and Get Running Risk Free.  Save $49
Enroll in our Feb 11-12 International Investing Seminar and get both report above free… plus an online copy of our October seminar free immediately. Save $378.

Belong to the International Club

The Huge 2018 Risk

Here is a huge risk that could explode in 2018.

I hope I am wrong.

According to Treasurydirect.com, as of October 31, 2017 the cost of interest on  the total US public debt of $20,467,375,664,755.32 (20 trillion+) was $24,411,569,716.36 (24 billion+).

The 36 cents isn’t much of a problem.  The other 20 trillion is.

This is good news and bad… the rock and the hard spot.  The bad news is that the rock (US federal debt) is getting bigger….harder to miss.  The Congressional Budget Office (CBO) projected in 2010 (the debt then was a bit over 14 trillion) that, under law at that time, debt held by the public would exceed $16 trillion by 2020, reaching nearly 70 percent of GDP.

They sure goofed on that.  Here we are… not quite into 2018 and debt has shot past 20 trillion.

How could the CBO be so wrong? 

The CBO screwed up because they could never imagine that the Fed would push interest rates so low… and keep them there.  The interest rates are so low that the government can borrow and borrow and still afford the interest.

For example, US Federal government interest this year will amount to around $483 billion on the 20 trillion of debt.  Yet in 2008 on debt of only $9,229,172,659,218.31 (9 trillion +) the interest that year was $451,154,049,950.63 (451 billion +).

Interest payments in 2017 are 7% higher than they were in 2008.  Yet the debt is over 100% higher.  

Very low interest rates have helped the government borrow.  Low interest has also helped the US stocks reach all time high prices.

Here is the very hard spot.  The downside is that low interest has reduced earnings of investors.  Low interest has ruined the lifestyles of many who have retired.

Here is what happened and why the problem may exist for quite a bit longer.

If investors can increase the interest rate to 6% from the lousy 1% (or so) they earn now, they gain 1,263% more over 30 years.  Anyone living off interest, who is drawing down their portfolio over 20 years, makes 57% more annual income every year.

But if investors get 6% interest instead of 1%, the government has to also pay more on it debt.

The government will resist raising rates because it will ruin their budget, cause a collapse of the stock markets and destroy the US dollar.  

Rising interest rates, that we would like to see as investors, will create an almost unimaginable debt crisis.  If government interest goes to 6% it is like the $20+ trillion national debt  rising to 100 trillion!  Unless there are some huge tax increases, a 5% increase in interest rates would increase the national debt by five times.

A tax increase?  The current tax act being proposed reduces, not increases, revenue.

This is not a theoretical problem for the future. This is not something that our children and grandchildren will have to deal with.  This is a problem in the here and now.

Interest rates create a massive problem on two sides of the same coin.  Raise rates the massive national debts ruins the purchasing power of currencies.  Keep interest rates low and capitalism does not work for investors.  Politicians simply borrow more (on our behalf) but for their benefit.

Learn how to have more freedom and time, less stress, better health care, extra income, greater safety and profit in your savings despite America’s deficits, debt and currency risk.

Fortunately there are secrets that will allow a few to live much better, free of debt and worry despite the decline in the dollar’s purchasing power.   My wife, Merri and I, have traveled, lived, worked and invested around the world for nearly 50 years to gain this information.

Let me share the basics of this data and how we can be of help through 2018.

The first fact behind this secret is that things are really good in the western world.  Despite many problems, we are surrounded by more abundance and greater opportunity than almost anyone has ever enjoyed, anywhere, ever.   To enjoy a fair share of this wealth, all we have to do is understand human nature and learn how to invest in the new economy, as it changes and becomes new, again and again.

Merri and I have made seven huge transitions in the 50 years.  Each has allowed us to always stay ahead of losses that the majority of Americans suffer.  We are in another transition right now and want to share why and what to do so you can stay ahead and live a richer, independent life through 2018 and beyond.

A falling US dollar is one of the greatest risks we have to our independence, safety, health, and wealth, but also brings a window of huge profit as I explain below.   Though the greenback has been strong for a number of years, its strength is in serious jeopardy.  The growing federal deficits increase the national debt and this with rising interest rates propels a growing debt service.

When the Dow Jones Industrial Average recently passed 20,000, another milestone of “20” took place that has a much darker meaning to your and my spending power.  The U.S. national debt passed the $20 trillion mark.

The problem is that the Dow will come back down.  National debt will not fall.

The double shock of money fleeing Wall Street and US debt skyrocketing, will destroy the purchasing power of the greenback.

Go to the store even now.  Statistics say inflation is low, but buy some bread or, heaven forbid, some fresh vegetables like peppers or fruit.   Look at the cost of your prescription or hospital bills.  Do something simple like have your car serviced at an auto dealer.  Look at the dollars you spend and you’ll see what I mean.

The loss of the dollar’s purchasing power erodes our independence, our freedom and our savings and wealth as well. 

At the same time, low interest rates by big banks and higher health care costs soak up the ever diminishing income and savings we have left.  According to a Gallup poll, the most unpopular three institutions in America are big corporations & Wall Street banks, HMOs and Congress.

Yet there is little we can do because these institutions are in control.

Over the last 50 years the average income for 90 percent of the American population fell.  Our health system is restricted by a Kafka-esque maze of legislation and insurance regulations that delay, frustrate, and thwart attempts by patients and doctors from proper medical care.  Big banks and corporations restrict our freedom of choice.  The business customer relationships are no longer transactions between free equals.

Banks can trap us in indebtedness at every age from student loans to mortgages to health care costs.  They pay almost nothing on our savings.  They hide unexpected fees and payments in complex and unreadable documents.  Banks and big corporations routinely conceal vital information in small print and then cheat.  Weak regulations and lax enforcement leave consumers with few ways to fight back.  Many of these businesses ranging from cable TV to phone and internet service to health insurance have virtual monopolies that along with deceptive marketing destroys any form of free market.

These same companies control the credit-scoring agencies so if  we don’t pay unfair fees, our credit scores will plunge and we could lose the ability to borrow money, rent an apartment, even to get a job.  Many consumers are forced to accept “arbitration clauses” in lieu of  legal rights.  The alternative is to lose banking, power, and communication services.

Big business has also usurped our privacy.  Internet companies sell our personal data.  Personal information is pulled from WiFi and iPhones track and store our movements.  The government can access this information, sometimes without subpoenas.  There’s a lot that we don’t know, often withheld under the guise of “National Security.”

The glow on Western democratic capitalism has dimmed… or so it seems.  The US, leading the way, is still a superpower with economic, innovation and military might, but the institutions that should serve the people have become flawed or broken.

America’s infrastructure is in shambles.  The nation’s bridges are crumbling, many water systems are filled with toxins, yet instead of spending more to fix this, we build more prisons.  The 2.2 million people currently in  jail is a 500 percent increase over the past thirty years.  60% of the inmates belong to ethnic groups.  Not just non-white ethnic groups are suffering.  Annual death rates are falling for every group except for middle-aged white Americans.  Death rates are rising among this group driven by an epidemic of suicides and afflictions stemming from substance abuse, alcoholic liver disease and overdoses of heroin and prescription opioids.

America’s middle class is shrinking.  Nearly  half of America’s income goes to upper-income households now.  In 1970 only 29 percent went to this group.  How can we regain our freedom, our happiness and our well being in such a world?

What can we do?

Gain a better, freer life is to combine better health, higher income and greater savings for a happier, more resilient lifestyle. 

Merri and I will celebrate our 50th year of global living, working, investing and researching to find and share ideas on how to have simpler, low stress, healthier, more affluent lifestyles.  Our courses, reports and email messages look at ways to gain:

#1:  Global micro business income.

#2:  Low cost, natural health.

#3:  Safer, more profitable, investments that take little time or cost to buy and hold… so you can focus on earning more instead

Many readers use our services for just one of these three benefits.  They focus only on health or on earning more or on better, easier investing.

27 years ago Merri and I created the International Club as a way for readers to join us and be immersed in all three of these benefits.   The International Club is a year long learning program aimed at helping members earn worry free income, have better affordable good health and gain extra safety and profits with value investments.

Join us for all of 2018 NOW.

The three disciplines, earning, health and investing, work best when coordinated together.  Regretfully the attacks on our freedom are realities of life.  There is little we can do to change this big picture.  However we can change how we care for our health, how we earn and how we save so that we are among the few who live better despite the dollar’s fall.

We start with better lower cost health care.

Club membership begins by sharing ways to be free of the “Secret Hospital Charge Master”.   Just as governments hide truth behind “National Security”, big health care businesses hide medical truths behind “Charge masters”.  Most hospital charge masters are secret because big business does not want us to know how much hospital costs have risen.  Motivations beyond our good health, like corporate greed, want to keep us in the dark about health care cost.

Despite rising health care costs, a report from the Centers for Disease Control & Prevention shows that hospitals are the last place we want to be for good health.  One report shows that hospital-acquired infections alone kills 57% more Americans every year than all car accidents and falls put together.

Often, what patients catch in the hospital can be worse than what sent them there.  Governments and health care agencies agree  – antibiotic resistance is a “nightmare.”  An antibiotic-resistant bacteria may be spreading in more hospitals than patients know.  About one in every 25 hospitalized patients gets an infection and a 2013 report from the Journal of Patient Safety showed that medical errors are the third-leading cause of death in the country.

Along with the risk of hospital acquired illness and medical errors, the second huge threat to our well being… is health care costs, especially at hospitals.  This is why charge masters are so often secret.  There are few risks to our wealth that are greater than a hospital stay.

I have created three natural health reports are about:

#1: Nutrition

#2: Purification

#3: Exercise

Each report is available for $19.95.  However you’ll receive this free as club member and save $59.85.

Club members also receive seven workshops and courses on how earn everywhere with at home micro businesses.  We call this our “Live Well and Free Anywhere Program”.   The program contains a series of courses and reports that show ways to earn and be free. These courses and reports are:

  • “International Business Made EZ”
  • “Self Fulfilled – How to Write to Sell”
  • Video Workshop by our webmaster David Cross,
  • The entire weekend “Writer’s Camp” in MP3
  • The report “How to Raise Money Abroad”
  • Report and MP3 Workshop “How to Gain Added Success With Relaxed Concentration”
  • The course “Event-Full – How to Earn Conducting Seminars and Tours”

This program is offered at $299, but is available to you as a club member free.  You save $299 more.

Next, club members participate in an intensive program called the Purposeful investing Course (Pi).  The purpose of Pi is finding value investments that increase safety and profit.  Learn Slow, Worry Free, Good Value Investing.

Stress, worry and fear are three of an investor’s worst enemies.  These destroyers of wealth can create a Behavior Gap, that causes investors to underperform in any market good or bad.  The behavior gap is created by natural human responses to fear.  Pi helps create profitable strategies that avoid losses from this gap.

Lessons from Pi are based on the creation and management of a Primary Pi Model Portfolio, called the Pifolio.  There are no secrets about this portfolio except that it ignores the stories from economic news (often created by someone with vested interests) and is based mainly on good math that reveals the truth through financial news.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets using my 50 years of global experience and my study of the analysis of four mathematical investing geniuses (and friends).

There are seven layers of tactics in the Pi strategy.

Pi Tactic #1: Determine purpose and good value.

Pi Tactic #2: Diversify 70% to 80% of portfolio equally in good value developed markets.

Pi Tactic #3: Invest 20% to 30% equally in good value emerging markets.

Pi Tactic  #4:  Use trending algorithms to buy sell or hold these markets.

Pi Tactic  #5:  Add spice speculating with ideal conditions.

Pi Tactic  #6: Add spice speculating with leverage.

Pi Tactic  #7:  Add spice speculating with forex potential.

The Pifolio analysis begins with a continual research of international major stock markets that compares their value based on:

#1:  Current book to price

#2:  Cash flow to price

#3:  Earnings to price

#4:  Average dividend yield

#5:  Return on equity

#6:  Cash flow return

#7:  Market history

We combine the research of several brilliant mathematicians and money managers with my years of investing experience.

This is a complete and continual study of what to do about the movement of international major and emerging stock markets.  I want to share this study throughout the next year with you.

This analysis forms the basis of a Good Value Stock Market Strategy.  The analysis is rational, mathematical and does not worry about short term ups and downs.  This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.  Little knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of good value indices.  Investments in an index are like investments in all the shares of a good value market.

Pi opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

The Pi subscription is normally $299 per annum but as a club member you receive Pi at no charge and save an additional $299.

Profit from the US dollar’s fall.

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!

Club members receive a report about opportunity in the  current strength of the US dollar is a second remarkable similarity to 30 years ago.   The 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 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 when you become a club member you receive the report, “Three Currency Patterns For 50% Profits or More” FREE.

Plus get the $39.99 report, “The Platinum Dip 2018” free.

With investors watching global stock markets bounce up and down, many missed two really important profit generating events.  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 and has remained near this level, compared to a range of the 230s only two years ago.

Now there is a new distortion ready to ripen in the year ahead.

These two events are a strong sign to invest in precious metals.

I prepared a special report “Platinum Dip 2018”.   The report explains the exact conditions you need to make leveraged precious metal speculations that can increase the returns in a safe portfolio by as much as eight times.  The purpose of the report is to share long term lessons about speculating in precious metals gained through 30 years of speculating and investing in gold and silver.

The low price of silver offers special value now so I want to send you this report because the “Platinum Dip 2018” offers enormous profit potential in 2018.

The report “Platinum Dip 2018” sells for $39.95 but club members receive it free as well.

The $39.95 new “Live Anywhere – Earn Everywhere Report” is also free.

There is an incredible new economy that’s opening for those who know what to do.  There are great new opportunities and many of them offer enormous income potential but also work well in disaster scenarios.

There are are specific places where you can reduce your living expenses and easily increase your income.  Scientific research has shown that being in such places actually make you smarter and healthier.  Top this off with the fact that they provide tax benefits as well and you have to ask, “Where are these places?”.

Learn about these specific places.  More important learn what makes them special.  Discover seven freedom producing steps that you can use to find other similar places of opportunity.

The report includes a tax and career plan broken into four age groups, before you finish school, from age 25 to 50 – age 50-to 65 and what to do when you reach the age where tradition wants you to re-tire.  (Another clue-you do not need to retire and probably should not!)

The report is very specific because it describes what Merri and I, our children and even my sister and thousands of our readers have done and are doing, right now.

Live Anywhere – Earn Everywhere focuses on a system that takes advantage of living in Smalltown USA, but earning locally and globally.

This report is available online for $39.99 but International Club members receive it free.

Save $418.78… “plus more” when you become a club member.

Join the International Club and receive:

#1: The $299 Personal investing Course (Pi).   Free.

#2: The $299 “Live Well and Free Anywhere Program”. Free.

#3: The $29.95 report “Three Currency Patterns For 50% Profits or More”. Free.

#4: The $39.99 report “Platinum Dip 2018”. Free

#5: The three $19.99 reports “Shamanic Natural Health”.  All three free.

#6: The $39.99 “Live Anywhere – Earn Everywhere” report. Free.

#7: A subscription to the Purposeful investing course… Plus more.

These reports, courses and programs would cost $767.78 so the 2018 membership saves $418.78, “plus more”.

What’s the “plus more”?

The International Club membership is $499, but we want to encourage our first 100 members for 2018 to join quickly so we are currently accepting discounted membership at $349. 

To encourage our first 100 members for 2018 to join quickly so we are currently accepting discounted membership at $349.

Save $418.78.  Join the International Club for $349 and receive all the above online now, plus all reports, course updates and Pi lessons through the rest of 2017 and all of 2018 at no additional fee.

Click here to become a member at the discounted rate of $349

Gary 

Wisdom of the Masses Q&A


There is wisdom in the masses if…

cranes

A mass of Sandhill Cranes from a National Geographic photo.

There is wisdom in the masses if you can apply it to your individual life.

Questions this week:

#1: About Ecuador Hotels.

#2: The importance of Spanish

#3:  Investing in Iraqi Dinars

#4: Emerging Bond Investments and Ecuador Relocation

#5:  Ecuador Scams

#6: Ecuador Real Estate Flipping

#7: Ecuador Bank Safety

#8: US Real Estate Safety

cranes

One Florida Sandhill Crane with juvenile.  The young cranes are called “colts”. 

Merri and I are back in Florida and the Sandhill Cranes live in the reeds of our and nearby lakes.

cranes

We love their loud trumpeting as they fly over the house early a.m.

The masses can be wise… or a stampeding herd thundering towards a cliff of oblivion.  We as individuals need to discern the importance and wisdom of a massive move.  Our responsibility is to decide whether the masses are on a “massive positive evolution” or “heading the wrong way”.

The repetition of a untruth does not make it truth!

So we spend our Saturdays sharing your (the readers) questions and comments. I hope that this dialogue is of personal value!

Reader Ecuador Comment. My wife and I are in Cotacochi today and checked in this morning to The Land of the Sun hotel you had mentioned. We must say we are completely impressed with the accommodations. After a week in Ayampe and points along the coast, this is by far the nicest. It has made our trip. (Before arriving here, my wife wanted to move our flight up and go home). My wife is pregnant and the staff here has been very gracious. The setting and the comfortable room has made us reserve 4 more nights here.

I appreciate your recommending it and wanted to say thanks for making my anniversary vacation one that will bring us back to Cotacochi. Muchas Gracias!!

Reader Spanish Question: Hi Gary and Merri-I am interested in attending the upcoming Spanish class but my time is so limited that I must use it wisely.  Obviously no one is going to learn a language in four days. I wonder if the technique is truly helpful. Do you have positive feedback from previous attendees?

My Reply: We have many raves from seminar delegates. One just wrote yesterday:  “The seminar was enjoyable and very informative.  We didn’t expect so much info to come are way i.e.  The theanine has been very helpful and we found our perfect baroque station on the internet. It was all I expected and more.”

We receive so many raves like this because of these three little known, but scientifically proven, ways to enhance the speed, accuracy and efficiency of the mind, memory, recall, retention and decision making process.

These are not gimmicks or tricks… just advanced enjoyable ways for the mind to create/process/utilize knowledge.

The first tactic is to use Baroque music in the learning process. At least three best selling books, “Superlearning”, the “Mozart Effect” and “Superlearning 2000” have revealed insights about how to learn and think more powerfully based on systems drawn from the Bulgarian educational master, Dr. Georgi Lozanov.  Merri, over 35 years ago, was among just a few who learned and was licensed directly.  She has practiced and worked with this system all these years.

Then she enhanced the learning of Spanish with the second tactic which is to make slight alterations in digestion.  This alone can make anyone a startling 25% smarter.These two tactics are given in seven, easy to use learning techniques that help gain any skill, from computers to athletics to conversational languages…  in much less time than traditional learning techniques… often two-to-five times faster, in exciting and innovative ways…but most of all it is a system that is stress free and full of fun.

The third tactic builds on the first two and uses 17 unique lessons to provide Spanish fluency in a short time.

Let me prove to you how this third tactic works by teaching you hundreds of Spanish words in less than 30 seconds.

Here is the proof.

“Most words in English that end in ION are almost identical, just pronounced differently (which we teach in the class). For example action is accion, education-educacion, manipulation- manipulacion, etc.”

There you have it.  How long did it take you to read the sentence? You now know hundreds of Spanish words that you will never forget.  We practice this and help to enliven the brain so that more and more correlations come forth from within to use in communication.

See examples of the words you know below.

How long would have taken you to memorize all those words?   How soon would you have forgotten them?

Thanks for your inquiry…and please see more about words like this at “Why you can Speak Spanish in Four Days here.”

Ecuador Relocation Question: Hi Gary,  We are Canadian citizens,  I see that the yields on bonds of the so-called “developing nations” (like  Brazil and the Dominican Republic) are at the 10% (give or take) range.

Which makes me think, “Can I not take my money there so it earns higher yields?”

Our situation (my wife, my dog and me) is as follows: mortgage-free owners of a house worth about CAD$300,000, total RRSP (tax-free retirement savings plans) worth about CAD$250,000 CAD, and no consumer debt (we pay off our credit card balance every month).  Our age bracket is the 35-40 group.

Is it realistic to expect that we could sell our house, take the CAD$300,000 and place it into higher-yielding bonds like those of Brazil and Dominican Republic (or any other suitable investments) and expect that the income from those investments could provide at least some of the money that we would need to cover our living expenses in whichever country we could choose to relocate to?  Or are we simply too young to even consider such a move and all we can do is “wait and see what happens and hope for the best”?  I feel like I’m the pig who sees the big bad wolf on the horizon racing towards us, but instead of building a brick house, I’d rather just “get out of Dodge” altogether.  Because in this case, I don’t even think the brick house is going to hold up intact against this big bad financial wolf headed our way.

Thank you for your time and consideration.

My Reply: I hold an overweighting of Brazilian bonds in my portfolio and they were paying over 12% when I invested.

As of July 2010  the Brazil’s Moody’s Rating Outlook was Positive and the Country Currency Debt rating Baa2.

For Baa1, Baa2, Baa3 ratings,  Moody judges obligations rated Baa to be “moderate credit risk”.  They are considered medium-grade and as such “protective elements may be lacking or may be characteristically unreliable”.

I do not hold DR bonds which are of a much lower grade. Last April 2010 Moody’s raised the Dominican Republic’s government bond rating to B1.

There is a stable outlook, but this is still four levels below investment grade.

For B1, B2, B3  Moody judges obligations rated B as speculative and “subject to high credit risk”, and have “generally poor credit quality”.  

My newest report “Running Risk – How to Invest in Risky Times” shows that when risk is greater… as it is now, investing in riskier assets makes sense. Learn more about this report here.

One key part of risk management is diversification.  So I have invested in Brazil, but certainly would not trust all my savings to Brazil and especially not the Dominican Republic.

Right now my feeling that the masses are crazy.

A

n October 25 2010 New York Times article entitled “In Bond Frenzy, Investors Bet on Inflation” by Christine Hauser says:

At a time when savers complain that they are earning almost no interest from their bank accounts, some investors on Monday bought United States government bonds that effectively had a negative rate of return.

My Reply: If  you want to avoid real estate scams I regret you’ll have to find a place where there are not people… or at least a place where people have overcome greed.  I have been living, traveling and working globally for 43 years now and have not found that yet… so try to do the best thing possible and shed light on the entire market so scammers cannot use ignorance of the market as their tool. Until then always beware! You can gain the assistance of full time full support research and assistance team by subscribing to our paid premium Ecuador Living service.

Bizarre as it sounds, that is correct. In an auction of a special kind of five-year Treasury bond, investors paid $105.50 for every $100 of bonds the government sold — agreeing to pay the government for the privilege of lending it money.

The reason is that these types of bonds offer a guaranteed protection against inflation. So, if inflation soars — as some economists worry might happen, with the government seeking to give the economy a boost by flooding it with money — the value of the bonds would go up accordingly.

The investors who took part in the $10 billion auction are betting that inflation, now at about 1 percent annually, will rise to a level that more than compensates for the premium they paid.

The unusual auction on Monday “reflects a condition in the Treasury market that has been in place for months, chiefly that yields on shorter maturities have moved below the inflation rate,” Anthony Crescenzi, a senior vice president at the bond giant Pimco, wrote in a research note.

Along with diversification is risk premium acquisition.  In other words…”GET PAID TO TAKE RISK”.

To buy US dollar bonds and pay a premium (we look for discounts… not premiums) in my humble opinion is not wise.

Finally,  at age 35 to 40, I would invest more in myself and my own micro business!

Reader Comment: Concerning comments about banking in Ecuador. At this point I would not transfer my life savings to an Ecuadorian bank. However, for convenience I have established an account in a small bank in San Jacinto a town of 3,000 next to San Clemente where we own a home on the beach. I met the bank officers and two of the members of the board of directors. When does that happen when you open an account in the US?This was done for the purpose of transferring funds to be used in Ecuador and not having to carry large sums of money on the flight. My account is at Cooperativa de Ahorra Y Credito (COACMES). This is the Ecuadorian equivalent of a local depositor owned savings and loan in the USA.

It is proving very handy. I can go to the bank (20 minute walk) (5 minute taximoto ride 50 cents) and withdraw funds as needed. They also offered me free checking services with the account. The interest rate is great, between 6 and 10 percent depending on amount and term.

I know others who have had in this bank large sums of money for long periods of time with no problems.

My Reply: This reader is correct. I agree and have written numerous times that “small amounts” for convenience makes sense.

But keep in mind that had “large amounts in Ecuador banks for long periods of time with no problems” until without notice all banks in Ecuador were shut down. I had $30,000 frozen for over a year and eventually received back only $19,000.

Banks can never be of higher quality than the investment rating of their country and Ecuador is not investment grade risk. You have been warned.  Be careful. Why take this risk when there are other much safer centers to hold the bulk of your savings?  Plus most Ecuador banks will only provide US dollar accounts and this is another risk.  I do not recommend holding very much of your savings in dollars or Ecuador banks.

Reader Comments: What about real estate scams in Ecuador?

This complete service includes our staff being able to provide personal responses to your questions.

Plus we help subscribers gain hotel discounts in the most visited parts of Ecuador.



Cuenca-real-estate-for-sale


Ecuador real estate still offers great value like this Cuenca house offered at $72,000.


Reader #2: Comment: Interesting how most of the Ecuadorian properties being marketed to the USA public using the internet as the venue are at least double the asking price from a couple of years ago. I wonder if most of the sellers are the “usual” real estate speculators.  Grab low – Sell High.

My reply to reader #2: Thanks for writing this as I have been wanting to get on my soap box and preach about flipping.  Your note provides my opening. Many of the properties are owned by people who have held them for a long time.

I started recommending buying in 2000 and many readers who did are selling for ten times what they paid.  As I have written often I am selling many of the properties I bought back then and selling now and buying back in Florida.

Ecuador prices have really been rising in recent times.

Construction costs have risen.  Cement, wood etc. are international commodities and labor is rising as the expats flood in.

There are some expats who try to come down and flip. This is not as easy as it seems and we find that most properties sell for much less than the offer price.  I am hoping that people will learn the risks of flipping.   I predict that those who try this in Ecuador will get their fingers burned.

Ecuador real estate still offers some great value but you have to get to Ecuador… learn how to market and wait with cash for bargains. The way to make a profit without getting ruined by popping bubbles is to spot distortions that create unusual value. Buy troubled properties and fix them. Throw in a dash of imagination and garnish with good taste. Plus be willing to wait five to ten years.

There is no easy way to always get rich.

photo

I like real estate with lots of water as a good investment when it can be purchased at a good value.

Reader’s Question: Gary, here is the deal.  I need your input.  Iraq dinars .  You can purchase about a million dinar for about $1000.  Next, when something? happens with the govt. of Iraq they WILL revalue!!!!  On an unbelievable mutiple.  This is going to happen very soon.  Better get on board now!  Do not miss the boat!.  I have never dealt in a currency play.   The hard currency is actually mailed to you.

My reply: This is a very risky bet. I have seen this story floating around for several years now… and it flies in the face of history so I have not taken it up.

Fundamentally the idea is not strong.  What makes a currency strong is… a country united in political.. work… religious… legal, etc. work ethic and its competitiveness and productivity versus other nations with a balanced budget and reasonable government debt.

I am no expert on Iraq but do not see these qualities there.  Maybe they’ll get their act together… but how can a nation that stills makes its women wear burkas compete with modern society that lets women like our wives excel in the work force?

This is a huge dilemma that all Muslim nations face. How can you get the women into the work force?  Even if there was a huge change in religious and social philosophy this could take at least one or two generations.

Iraq has oil but also needs to import billions maybe trillions to rebuild… and I have yet to see a new currency issued that is upvalued. They are always devalued.  Will the people who rebuild the infrastructure accept an inflated currency as payment for their work?  I doubt it. I suspect the big construction firms will want a currency that is realistic.

Plus with all the new oil being discovered (and or now capable of being recovered) in the US… oil prices may go down.

If having a lot of oil alone made a currency go up, the Russian Rouble would rise verses the dollar.  This chart shows that instead since 1999 it has fallen from about 50 cents to 32 cents and is headed down.

Here is a currency play I am doing that has done very well recently.  I am not recommending that you follow the below outline and must add caution because these plays are always changing and in these times of risk need to be carefully monitored.  If you want to know what I am doing or changing or rearranging, just keep reading this free daily email letter.

I borrowed $300,000 and invested
$100K each in Mexican peso gvt. bonds (BBB) 10% Due 2024 selling at 117 yielding about 8%

$100,000 European Investment Bank Australian dollar bonds (AAA) 6.0% 2013 101.49  yielding 5.56%

$100,000 European Investment Bank  New Zealand dollar bonds (AAA) 6.5% 2014 104.77  yielding 5.38%

•Average yield 6.31% or $18,930 a year income.

•Loan cost      $   9,000

•Return           $   9,930

•Plus Forex Potential and all three currencies has risen versus the dollar.

Maybe you’ll make a lot on the Irqui dinar but maybe you’ll make a lot on the lottery. Odds are… you’ll lose.

photo

One of our North Carolina cabins. I have a heavy weighting in real assets compared to currencies.

Reader Comments: The banking industry is sitting on $2 trillion of bad mortgages.Just last week Pimco and the Fed asked B of A to buy back some faulty mortgage investments formed by Countrywide.This is just the beginning.

Real estate has more downside and could be much more.

Second, baby boomers are downsizing. This puts pressure on the larger property market where there are many more sellers than buyers. As these prices continue to fall they will take smaller properties(which have somewhat stabilized in some markets) with them.

The only thing that will prevent a further significant drop in prices is a massive federal program that will allow homeowners to refinance at low or no cost at current mortgage rates and also allow them to walk away from some of their debt.

It is extremely difficult and expensive (especially in states like Florida) for homeowners to refinance today. The Feds need to make this process much easier (especially for those homeowners that are currently underwater but continuing to make their mortgage payments.

That’s my 2 cents.

My Comments: All these reasons for the real estate market continuing to fall make sense except  for three factors.  First, history disagrees.  Since the industrial revolution began… the world’s standard of living has improved.  Second, the population is growing and each person expects more.

Third, real estate is paying a great risk premium!  When the economy is in the doldrums it is hard to see how the economy can improve.  Yet is always has.

In this situation, the current tide is almost always wrong. When times are bleakest is the best time to invest because everyone else is selling.

Consider the alternative… land purchased at .5o cents n the US dollar or government bonds sold at $1.05 for a dollar bond!  Plus you can put your energy into a real estate deal… buy… fix… landscape… rent… use, etc.

Recently a reader passed a note entitled “How a stimulus package works” I rarely pass such emails on but this one is interesting. It said:

It is a slow day in the small Saskatchewan town of Pumphandle, and streets are deserted. Times are tough, everybody is in debt, and everybody is living on credit.

A tourist visiting the area drives through town, stops at the motel and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs to pick one for the night.

As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher.

The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.

The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Co-op.

The guy at the Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her services on credit.

The hooker rushes to the hotel and pays off her room bill with the hotel owner.

The hotel proprietor then places the $100 back on the counter so the traveler will not suspect anything.

At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves.

No one produced anything. No one earned anything… However, the whole town is now out of debt and now looks to the future with a lot more optimism.

And that, ladies and gentlemen, is how a Stimulus package works.

This is an interesting story and has a point but I’d like to point out that the hotel proprietor got screwed! He accepted the $100 from the prostitute… forgave the debt and then lost the $100.

So when the government gets too involved in the economy… always ask the question… who is going to get screwed?  The US dollar bond holder? The share investor. The commodity owner? The land owner?

My guess (and where I am betting more of my money) is that inflation is ahead and during inflation commodities and real estate win.

Keep in mind diversification… but once again look for risk premium.  The risk premium on real estate may be at an all time high!

Gary

See our catalog of service here.

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The Huge 2018 Risk

Here is a huge risk that could explode in 2018.

I hope I am wrong.

According to Treasurydirect.com, as of October 31, 2017 the cost of interest on  the total US public debt of $20,467,375,664,755.32 (20 trillion+) was $24,411,569,716.36 (24 billion+).

The 36 cents isn’t much of a problem.  The other 20 trillion is.

This is good news and bad… the rock and the hard spot.  The bad news is that the rock (US federal debt) is getting bigger….harder to miss.  The Congressional Budget Office (CBO) projected in 2010 (the debt then was a bit over 14 trillion) that, under law at that time, debt held by the public would exceed $16 trillion by 2020, reaching nearly 70 percent of GDP.

They sure goofed on that.  Here we are… not quite into 2018 and debt has shot past 20 trillion.

How could the CBO be so wrong? 

The CBO screwed up because they could never imagine that the Fed would push interest rates so low… and keep them there.  The interest rates are so low that the government can borrow and borrow and still afford the interest.

For example, US Federal government interest this year will amount to around $483 billion on the 20 trillion of debt.  Yet in 2008 on debt of only $9,229,172,659,218.31 (9 trillion +) the interest that year was $451,154,049,950.63 (451 billion +).

Interest payments in 2017 are 7% higher than they were in 2008.  Yet the debt is over 100% higher.  

Very low interest rates have helped the government borrow.  Low interest has also helped the US stocks reach all time high prices.

Here is the very hard spot.  The downside is that low interest has reduced earnings of investors.  Low interest has ruined the lifestyles of many who have retired.

Here is what happened and why the problem may exist for quite a bit longer.

If investors can increase the interest rate to 6% from the lousy 1% (or so) they earn now, they gain 1,263% more over 30 years.  Anyone living off interest, who is drawing down their portfolio over 20 years, makes 57% more annual income every year.

But if investors get 6% interest instead of 1%, the government has to also pay more on it debt.

The government will resist raising rates because it will ruin their budget, cause a collapse of the stock markets and destroy the US dollar.  

Rising interest rates, that we would like to see as investors, will create an almost unimaginable debt crisis.  If government interest goes to 6% it is like the $20+ trillion national debt  rising to 100 trillion!  Unless there are some huge tax increases, a 5% increase in interest rates would increase the national debt by five times.

A tax increase?  The current tax act being proposed reduces, not increases, revenue.

This is not a theoretical problem for the future. This is not something that our children and grandchildren will have to deal with.  This is a problem in the here and now.

Interest rates create a massive problem on two sides of the same coin.  Raise rates the massive national debts ruins the purchasing power of currencies.  Keep interest rates low and capitalism does not work for investors.  Politicians simply borrow more (on our behalf) but for their benefit.

Learn how to have more freedom and time, less stress, better health care, extra income, greater safety and profit in your savings despite America’s deficits, debt and currency risk.

Fortunately there are secrets that will allow a few to live much better, free of debt and worry despite the decline in the dollar’s purchasing power.   My wife, Merri and I, have traveled, lived, worked and invested around the world for nearly 50 years to gain this information.

Let me share the basics of this data and how we can be of help through 2018.

The first fact behind this secret is that things are really good in the western world.  Despite many problems, we are surrounded by more abundance and greater opportunity than almost anyone has ever enjoyed, anywhere, ever.   To enjoy a fair share of this wealth, all we have to do is understand human nature and learn how to invest in the new economy, as it changes and becomes new, again and again.

Merri and I have made seven huge transitions in the 50 years.  Each has allowed us to always stay ahead of losses that the majority of Americans suffer.  We are in another transition right now and want to share why and what to do so you can stay ahead and live a richer, independent life through 2018 and beyond.

A falling US dollar is one of the greatest risks we have to our independence, safety, health, and wealth, but also brings a window of huge profit as I explain below.   Though the greenback has been strong for a number of years, its strength is in serious jeopardy.  The growing federal deficits increase the national debt and this with rising interest rates propels a growing debt service.

When the Dow Jones Industrial Average recently passed 20,000, another milestone of “20” took place that has a much darker meaning to your and my spending power.  The U.S. national debt passed the $20 trillion mark.

The problem is that the Dow will come back down.  National debt will not fall.

The double shock of money fleeing Wall Street and US debt skyrocketing, will destroy the purchasing power of the greenback.

Go to the store even now.  Statistics say inflation is low, but buy some bread or, heaven forbid, some fresh vegetables like peppers or fruit.   Look at the cost of your prescription or hospital bills.  Do something simple like have your car serviced at an auto dealer.  Look at the dollars you spend and you’ll see what I mean.

The loss of the dollar’s purchasing power erodes our independence, our freedom and our savings and wealth as well. 

At the same time, low interest rates by big banks and higher health care costs soak up the ever diminishing income and savings we have left.  According to a Gallup poll, the most unpopular three institutions in America are big corporations & Wall Street banks, HMOs and Congress.

Yet there is little we can do because these institutions are in control.

Over the last 50 years the average income for 90 percent of the American population fell.  Our health system is restricted by a Kafka-esque maze of legislation and insurance regulations that delay, frustrate, and thwart attempts by patients and doctors from proper medical care.  Big banks and corporations restrict our freedom of choice.  The business customer relationships are no longer transactions between free equals.

Banks can trap us in indebtedness at every age from student loans to mortgages to health care costs.  They pay almost nothing on our savings.  They hide unexpected fees and payments in complex and unreadable documents.  Banks and big corporations routinely conceal vital information in small print and then cheat.  Weak regulations and lax enforcement leave consumers with few ways to fight back.  Many of these businesses ranging from cable TV to phone and internet service to health insurance have virtual monopolies that along with deceptive marketing destroys any form of free market.

These same companies control the credit-scoring agencies so if  we don’t pay unfair fees, our credit scores will plunge and we could lose the ability to borrow money, rent an apartment, even to get a job.  Many consumers are forced to accept “arbitration clauses” in lieu of  legal rights.  The alternative is to lose banking, power, and communication services.

Big business has also usurped our privacy.  Internet companies sell our personal data.  Personal information is pulled from WiFi and iPhones track and store our movements.  The government can access this information, sometimes without subpoenas.  There’s a lot that we don’t know, often withheld under the guise of “National Security.”

The glow on Western democratic capitalism has dimmed… or so it seems.  The US, leading the way, is still a superpower with economic, innovation and military might, but the institutions that should serve the people have become flawed or broken.

America’s infrastructure is in shambles.  The nation’s bridges are crumbling, many water systems are filled with toxins, yet instead of spending more to fix this, we build more prisons.  The 2.2 million people currently in  jail is a 500 percent increase over the past thirty years.  60% of the inmates belong to ethnic groups.  Not just non-white ethnic groups are suffering.  Annual death rates are falling for every group except for middle-aged white Americans.  Death rates are rising among this group driven by an epidemic of suicides and afflictions stemming from substance abuse, alcoholic liver disease and overdoses of heroin and prescription opioids.

America’s middle class is shrinking.  Nearly  half of America’s income goes to upper-income households now.  In 1970 only 29 percent went to this group.  How can we regain our freedom, our happiness and our well being in such a world?

What can we do?

Gain a better, freer life is to combine better health, higher income and greater savings for a happier, more resilient lifestyle. 

Merri and I will celebrate our 50th year of global living, working, investing and researching to find and share ideas on how to have simpler, low stress, healthier, more affluent lifestyles.  Our courses, reports and email messages look at ways to gain:

#1:  Global micro business income.

#2:  Low cost, natural health.

#3:  Safer, more profitable, investments that take little time or cost to buy and hold… so you can focus on earning more instead

Many readers use our services for just one of these three benefits.  They focus only on health or on earning more or on better, easier investing.

27 years ago Merri and I created the International Club as a way for readers to join us and be immersed in all three of these benefits.   The International Club is a year long learning program aimed at helping members earn worry free income, have better affordable good health and gain extra safety and profits with value investments.

Join us for all of 2018 NOW.

The three disciplines, earning, health and investing, work best when coordinated together.  Regretfully the attacks on our freedom are realities of life.  There is little we can do to change this big picture.  However we can change how we care for our health, how we earn and how we save so that we are among the few who live better despite the dollar’s fall.

We start with better lower cost health care.

Club membership begins by sharing ways to be free of the “Secret Hospital Charge Master”.   Just as governments hide truth behind “National Security”, big health care businesses hide medical truths behind “Charge masters”.  Most hospital charge masters are secret because big business does not want us to know how much hospital costs have risen.  Motivations beyond our good health, like corporate greed, want to keep us in the dark about health care cost.

Despite rising health care costs, a report from the Centers for Disease Control & Prevention shows that hospitals are the last place we want to be for good health.  One report shows that hospital-acquired infections alone kills 57% more Americans every year than all car accidents and falls put together.

Often, what patients catch in the hospital can be worse than what sent them there.  Governments and health care agencies agree  – antibiotic resistance is a “nightmare.”  An antibiotic-resistant bacteria may be spreading in more hospitals than patients know.  About one in every 25 hospitalized patients gets an infection and a 2013 report from the Journal of Patient Safety showed that medical errors are the third-leading cause of death in the country.

Along with the risk of hospital acquired illness and medical errors, the second huge threat to our well being… is health care costs, especially at hospitals.  This is why charge masters are so often secret.  There are few risks to our wealth that are greater than a hospital stay.

I have created three natural health reports are about:

#1: Nutrition

#2: Purification

#3: Exercise

Each report is available for $19.95.  However you’ll receive this free as club member and save $59.85.

Club members also receive seven workshops and courses on how earn everywhere with at home micro businesses.  We call this our “Live Well and Free Anywhere Program”.   The program contains a series of courses and reports that show ways to earn and be free. These courses and reports are:

  • “International Business Made EZ”
  • “Self Fulfilled – How to Write to Sell”
  • Video Workshop by our webmaster David Cross,
  • The entire weekend “Writer’s Camp” in MP3
  • The report “How to Raise Money Abroad”
  • Report and MP3 Workshop “How to Gain Added Success With Relaxed Concentration”
  • The course “Event-Full – How to Earn Conducting Seminars and Tours”

This program is offered at $299, but is available to you as a club member free.  You save $299 more.

Next, club members participate in an intensive program called the Purposeful investing Course (Pi).  The purpose of Pi is finding value investments that increase safety and profit.  Learn Slow, Worry Free, Good Value Investing.

Stress, worry and fear are three of an investor’s worst enemies.  These destroyers of wealth can create a Behavior Gap, that causes investors to underperform in any market good or bad.  The behavior gap is created by natural human responses to fear.  Pi helps create profitable strategies that avoid losses from this gap.

Lessons from Pi are based on the creation and management of a Primary Pi Model Portfolio, called the Pifolio.  There are no secrets about this portfolio except that it ignores the stories from economic news (often created by someone with vested interests) and is based mainly on good math that reveals the truth through financial news.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets using my 50 years of global experience and my study of the analysis of four mathematical investing geniuses (and friends).

There are seven layers of tactics in the Pi strategy.

Pi Tactic #1: Determine purpose and good value.

Pi Tactic #2: Diversify 70% to 80% of portfolio equally in good value developed markets.

Pi Tactic #3: Invest 20% to 30% equally in good value emerging markets.

Pi Tactic  #4:  Use trending algorithms to buy sell or hold these markets.

Pi Tactic  #5:  Add spice speculating with ideal conditions.

Pi Tactic  #6: Add spice speculating with leverage.

Pi Tactic  #7:  Add spice speculating with forex potential.

The Pifolio analysis begins with a continual research of international major stock markets that compares their value based on:

#1:  Current book to price

#2:  Cash flow to price

#3:  Earnings to price

#4:  Average dividend yield

#5:  Return on equity

#6:  Cash flow return

#7:  Market history

We combine the research of several brilliant mathematicians and money managers with my years of investing experience.

This is a complete and continual study of what to do about the movement of international major and emerging stock markets.  I want to share this study throughout the next year with you.

This analysis forms the basis of a Good Value Stock Market Strategy.  The analysis is rational, mathematical and does not worry about short term ups and downs.  This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.  Little knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of good value indices.  Investments in an index are like investments in all the shares of a good value market.

Pi opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

The Pi subscription is normally $299 per annum but as a club member you receive Pi at no charge and save an additional $299.

Profit from the US dollar’s fall.

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!

Club members receive a report about opportunity in the  current strength of the US dollar is a second remarkable similarity to 30 years ago.   The 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 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 when you become a club member you receive the report, “Three Currency Patterns For 50% Profits or More” FREE.

Plus get the $39.99 report, “The Platinum Dip 2018” free.

With investors watching global stock markets bounce up and down, many missed two really important profit generating events.  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 and has remained near this level, compared to a range of the 230s only two years ago.

Now there is a new distortion ready to ripen in the year ahead.

These two events are a strong sign to invest in precious metals.

I prepared a special report “Platinum Dip 2018”.   The report explains the exact conditions you need to make leveraged precious metal speculations that can increase the returns in a safe portfolio by as much as eight times.  The purpose of the report is to share long term lessons about speculating in precious metals gained through 30 years of speculating and investing in gold and silver.

The low price of silver offers special value now so I want to send you this report because the “Platinum Dip 2018” offers enormous profit potential in 2018.

The report “Platinum Dip 2018” sells for $39.95 but club members receive it free as well.

The $39.95 new “Live Anywhere – Earn Everywhere Report” is also free.

There is an incredible new economy that’s opening for those who know what to do.  There are great new opportunities and many of them offer enormous income potential but also work well in disaster scenarios.

There are are specific places where you can reduce your living expenses and easily increase your income.  Scientific research has shown that being in such places actually make you smarter and healthier.  Top this off with the fact that they provide tax benefits as well and you have to ask, “Where are these places?”.

Learn about these specific places.  More important learn what makes them special.  Discover seven freedom producing steps that you can use to find other similar places of opportunity.

The report includes a tax and career plan broken into four age groups, before you finish school, from age 25 to 50 – age 50-to 65 and what to do when you reach the age where tradition wants you to re-tire.  (Another clue-you do not need to retire and probably should not!)

The report is very specific because it describes what Merri and I, our children and even my sister and thousands of our readers have done and are doing, right now.

Live Anywhere – Earn Everywhere focuses on a system that takes advantage of living in Smalltown USA, but earning locally and globally.

This report is available online for $39.99 but International Club members receive it free.

Save $418.78… “plus more” when you become a club member.

Join the International Club and receive:

#1: The $299 Personal investing Course (Pi).   Free.

#2: The $299 “Live Well and Free Anywhere Program”. Free.

#3: The $29.95 report “Three Currency Patterns For 50% Profits or More”. Free.

#4: The $39.99 report “Platinum Dip 2018”. Free

#5: The three $19.99 reports “Shamanic Natural Health”.  All three free.

#6: The $39.99 “Live Anywhere – Earn Everywhere” report. Free.

#7: A subscription to the Purposeful investing course… Plus more.

These reports, courses and programs would cost $767.78 so the 2018 membership saves $418.78, “plus more”.

What’s the “plus more”?

The International Club membership is $499, but we want to encourage our first 100 members for 2018 to join quickly so we are currently accepting discounted membership at $349. 

To encourage our first 100 members for 2018 to join quickly so we are currently accepting discounted membership at $349.

Save $418.78.  Join the International Club for $349 and receive all the above online now, plus all reports, course updates and Pi lessons through the rest of 2017 and all of 2018 at no additional fee.

Click here to become a member at the discounted rate of $349

Gary 

Happy Oops… New Year


Here’s one way to get a good start in the new year.  Let my 2009 error make you a hero in 2010.

Sometimes… no matter how much experience… there are ways to screw up…  as I recently did.

See below how this mistake can not only bring extra cheer to you in 2010… but can help you gain wealth… better health… asset protection and make you a hero (or heroine as the case may be) as well.  Plus save you some cash as well!

First let me share how rosy our holiday has been… filled with Ecuador roses.   (Roses like this will be part of your heroship because in a minute you’ll see how to get an Ecuador rose bouquet absolutely free…. exactly at the most important time.)

We received 100 roses… we had ordered 50 and a kind reader sent us 50 more. Thank you Barry!  After sharing, we still had a number of wonderful bouquets around the house.

Some have become wilted by now.

Though they are not so great on the stems… they still look good on…

ecuador-roses

off the stalks on…

ecuador-roses

our dining room table.

The pinks really held up and remain in our kitchen.

ecuador-roses

These roses lasted nine days because we care for them. Instructions are included when you get Ecuador roses.

Other good ones have regrouped into a New Year’s bouquet standing in our living room.

ecuador-roses

Readers loved their Ecuador roses as well.

One wrote:  Just wanted to send a note about the roses. They are breathtaking. We cannot believe just how beautiful they are. Arrival was exactly on schedule, again they are perfect. We got them for our own house, which is an Assisted Living Facility for the Developmentally Disabled, six men with mental challenges live here with us. But the roses are so lovely we are allowing them to take some to their families. We want to thank you and yours for sharing with us such a lovely gift.  Makes us want to move even more.   You will definitely be getting more orders in the future from us AND our friends.

Now let me confess… my screw up.  Then we’ll share two great benefits (an Ecuador rose gift and more) that this error can bring to you.

Merri and I have been conducting seminars for over 30 years.

In that time we have learned many lessons.  For example…  one important lesson is… do not conduct a seminar anywhere near Christmas, Easter or Valentine’s Day.

So what did I do for 2010?

Before I admit everything, please let me mitigate this screw up by saying that scheduling these events is not the easiest task in the world.

One has to take into account US holidays, Canadian holidays…. Ecuadorian holidays… religious holidays of all sorts… what one’s competitors are doing, what our friends at Jyske Bank are doing plus in 2010 we have a Cotswold wedding to factor in  (our youngest daughter is to be married… yea!) as well.

Plus our business has really boomed.   By last October, when we normally schedule our seminars for the year ahead…  I was already being bombarded with requests for a 2010 schedule.

What more can I say.  I simply goofed under pressure and set up our first ever expanded Quantum Wealth International Business & Investing seminar for Feb. 11-14  in Mt. Dora, Florida.

In other words this course’s schedule is not near… not close… but right on Valentine’s Day.  I shudder!

Plus once our schedule is set and reservations come in…the dates are pretty well set in stone.  In the last 30 years or so I have missed a seminar only twice… once when my dad died and once last year when my mother had a serious illness. (She has recovered really nicely thank you very much).

If Merri, our kids and my mom (plus me of course) are breathing and are likely to continue to do so for a week… then our seminars are conducted!

So I realized: “I had to turn lemons into lemonade.”

I had to create a Valentine’s celebration as part of our February seminar.

I have done this in three ways so here is what I am going to do for you…. to make you a Valentine’s hero!

If you attend our course this February 11 to 14  and bring your partner! I’ll give you a bouquet of beautiful Ecuador roses to enjoy at the seminar.  If your spouse does not come, you can take the roses home… The course ends about noon so you can get back home on Valentine’s Day, and with some of the nicest roses you can imagine, to say “Happy Valentine’s Day”!

You’ll be a Valentine’s hero!

Yet there are two more great Valentine’s treats in the works… that will make you a Hero with a capital H.   We’ll see these other benefits in a moment.

First, let me describe the benefits (beyond being a Valentine HERO) of attending the seminar.

The seminar begins in Mt. Dora (about an hour from Orlando airport) Thursday February 11 with “Quantum Wealth” a one day workshop conducted before our regular Florida International Investing & Business Made EZ seminar.

This workshop helps you learn how to attain wealth continuously, effortlessly, in a fulfilling, enjoyable and positive way.  This workshop will help you stop worrying about money, bad governments, the falling dollar… inflation and all the future other horribles. Quantum Wealth reduces stress… improves health and helps income to flow from doing what you love.

We have been incorporating the ideas of Quantum Health and Quantum Wealth into our courses and seminars for decades… but our  February 2010 Florida schedule made it possible to devote an entire day to this portion of the course.

International-Investments

Delegates enjoy coming to our home during the “Quantum Wealth – International Business & Investing Seminars” Here is a group at our North Carolina home.

The foundation of Quantum Wealth is to integrate:

* Logic with intuition.  The benefit is increased prosperity from better adaptation to change.

* Desire with action.  The benefit is more enjoyment and fulfillment from life.

* Good health with everlasting wealth. The benefit is reduction of stress, more energy and feeling better.

ecuador-savings

Join us here, this February at…

emp-terrorst-attack

our new Florida home…where we will enjoy a Valentine’s Day celebration.

Bringing delegates to our home for a home cooked meal is an example of a quantum wealth benefit.

This is fun.

Yet there is more.  This process helps delegates hear, see and feel the authentic reality of the ideas we share.  We do not spout ivory tower, unattainable theory.  Our seminars share what we do… how we live… and how we have developed our lifestyle. Our mission is to help you see what we do, so you can blend our lessons into a lifestyle that is better… happier… richer…easier for you.

I have never heard of other seminars offering this… an integration of what we speak about with our actual “at home” lifestyle.

Here are the 21 main points we cover in our one day Quantum Wealth Workshop.

#1: Quantum mechanics & frequency how they all connect.

#2: Three aspects of being – air – fire – water… how to balance and integrate them.

#3: Three ways to integrate brain waves and be in the zone… 60 cycle sound… L- theanine and meditation.

#4: The Andean – Indian Connection. How Ayurved and Andean relate.  Three fundamentals of longevity. Eat right, work hard and sleep well. Nutrition, exercise and purpose.

#5: How dis-ease develops and is stopped.

#6: Nutritional goals: Improve digestion, avoid dis-ease here first.

#7: How to use cleansings. Melon, pineapple, apples-grapes, vareshna, chelating, cinnamon-sweet pepper tea, steam and mists.

#8: Teas. How and when to use cedron, chamomile, lemon verbena, peppermint.

#9: Relaxers. How to use chamomile, valerian, lettuce and milk, hot water, vata press.

#10: Fire reducers. How to use peppermint tea, aloe, cream massage, frozen grapes.

#11: Water reducers. How to use cinnamon tea, paprika, cloves, ginger, ginger-black salt and lemon juice.

#12: The power of ritual & routine. When to eat, think, exercise.

#13: How to spot imbalances. Moods, physical signs. pulse testing.

#14: Quantum leap. How energy, colors, organs, glands work together and change every seven years.

#15: Shamanic exercises-yoga, llama walk, lizard, sun salute, crab and mouth release, ring chew, etc.

#16: Deeper Digestion.

#17: How to use the senses, taste, six flavors.

#18: How to use color.

#19: How to use sound.

#2o: How to use essential oils.

#21:  How to gain Super Thinking abilities, increased intelligence and super thinking into our Super Thinking + Spanish for many years but now have added this to our international investing and business seminars to create quantum wealth.

There are at least three simple ways to turn on this super thinking ability:  meditation, listening to 60 cycle music and taking Theanine.
These three steps integrate four categories of brainwaves, ranging from beta waves, the fastest of the four different brainwaves to alpha, theta and the final brainwave state, delta. Delta brainwaves are of the greatest amplitude and slowest frequency.  Deep dreamless sleep takes you down to the lowest frequency.

When we allow these waves to interconnect freely we gain unimaginable intellect.

Merri and I meditate twice every day to tap into this energy.

Plus we listen to 60 beat ten cycle classical music as we work. You could count the number of times we have missed our meditation routine in the last 20 years on one hand. This helps us enormously.

This type of music, along with deep breathing exercises for relaxation moves the mind into Alpha and deeper states as well.

Health benefits are gained as blood pressure can drop, heart rates slow and the mind becomes calmed… and you become smarter.  You tap into your higher intelligence and are more likely to have… and  enjoy… success.

A third avenue that helps enhance intelligence is Theanine (chemical name: r-glutamylethylamide) one of the chemicals found in green tea. Theanine is used to reduce stress and anxiety without the tranquilizing effects found in many other calming agents. Scientific evidence shows that Theanine stimulates the brain’s production of alpha waves, making the user feel relaxed but alert and not drowsy. It also helps the body produce other calming amino acids, such as dopamine, GABA, and tryptophan. As might be expected from a calming supplement, Theanine may be able to lower elevated blood pressure as well.

Our Quantum Wealth workshop looks at how to use super thinking to tap into deeper intelligence and what to do with this intelligence in business, investing and life so you improve the way you absorb, retain, recall information and think forever. The one day Quantum Wealth workshop prepares you to gain more from the international investing segment of the course that starts Friday February 12 when I join Thomas Fischer of Jyske Global Asset Management and our webmaster to review where to invest in 2010.

international-investment-seminar

Here is Thomas speaking at a previous seminar.

Quantum wealth shares our lifestyle.  International Business & Investing shares  how we create income through service and invest globally… plus shares our most valuable contacts and sources of knowledge.

Inflation makes it increasingly hard for almost everyone to keep up with the faster and faster pace of the rat race that captures most of the world…especially in economic downturns we have experienced for the past two years.

International investments and international business unlocks the restrictions of the rat race.

Economic stress grows…debt…rising cost of insurance, increased liability…inflation lurk everywhere. More crowded…more change…more push.  The falling dollar and economic hard times are shredding purchasing power.

This leave us few choices.

We can join the rat race or…find enjoyable ways to invest and earn.

The second day of the seminar (Friday Feb 12) looks first at multi currency investing.  Multi currency portfolios are usually slow moving, safe, conservative investments but they can be really profitable as well.

How safe?

The portfolios we create and review at our courses are composed of mutual funds and shares and are developed with the help of one of the world’s safest banks. The mutual funds and shares are held at that bank at all times.

Suppose we get specific.

That safe bank is Jyske Bank…well established with a history of over 100 years. Jyske is Denmark ’s second largest bank, with 450,000 clients in Denmark and over 30,000 abroad.

Jyske Bank has over 23 billion euros in assets and also happens to be one of the leading currency traders in the world. The Danes have always been big currency traders because as a small naval country surrounded by England , Sweden , Finland , Russia , Germany , Norway and other countries…they have always had to deal in many currencies.

This historically gained expertise means that unlike most banks (that trade only eight hours a day) Jyske maintains a 24 hour global currency and commodity dealer service. Many other large banks use Jyske to handle their off hour currency positions. This means that Jyske is huge when it comes to multi currency activity. In fact their turnover reaches $50 billion dollars a day.

That’s safe.

Each course reviews global economics and updates ways to adapt and prosper in current conditions.

This portion of the course reviews what I am doing as multi currency investor myself.  For example during the 2008 downturn the recent Global Portfolio Currency Breakdown of my own personal portfolio looked like this.

Ecuador Real Estate 12.0%
Real Estate  31.0%
Euro 10.5%
Emerging market Currencies 10.0%
Danish kroner 9.9%
US$ 8.2%
British pound 6.0%
Swedish kroner 4.0%
NZ$ 3.7%
Australian $ 1.0%
Canadian $ 1.0%

By late 2009 that portfolio had shifted to

US $ Real Estate 50%
Non US Equities   3%
Emerging Bonds 11%
Bonds                   26%
Ecuador Real Estate  (for sale) 15%
US$ Short             -5%

my liquid portfolio was diversified in these currencies:

US$  -5.0%
CAD  7.0%
NZD  7.0%
AUD   7.0%
$ Bloc   16.0%

GBP   8.0%
DKK  10.0%
SEK   4.0%
EURO 39.0%
Euro bloc 61.0%

TRY 6.0%
HUF 7.0%
BRL 6.0%
EMCS 6.0%
Emg Curr  25.0%

Now I have made another big shift in my portfolio. At the seminar you’ll see my updated portfolio and why I have made these changes.

Most teachers do not actually share their own personal portfolios…  Just as Merri and I share our home and lifestyle, we share how we invest and explain why our portfolio is designed for our circumstances at any one time.

This provides you with two benefits. First, sharing why we adjust our investments helps you understand how to adjust yours.

Second, and most important, we invest real time. The data shared in our courses is about global investments you can make in the here and now. What you learn is not dated theory, but up to the minute fact! Many delegates come to course after course to update their portfolios.

We share our most valuable sources of information as well.

For example, Thomas Fischer Senior VP of Jyske’s Global Asset Management group will join us from Copenhagen to speak about where to place your current international investment allocation… along with four others… six of our friends and most valued sources if data… will be on hand to help you.

My personal investment adviser Anders Nielsen, also with Jyske, will be on hand to speak privately and answer any of your personal questions.  Our friend and tax attorney of more than 20 years, Joe Cox will share information at the seminar as well.

multi-currency-debt

Here I am with Anders at a previous global investment session.

Here are a few of the international investing and business subjects we review at this course.

#1: How 100 years of global economics can enhance your international investments and international business now. Learn how history reveals currency distortions that create international investment opportunities to borrow low and deposit high. For example right now you can borrow Japanese yen at below 3%, Swiss francs below 4% to invest in international investments, international business, international real estate or other international currencies that pay 5%, 6%, 7% and even more. In one case we’ll show why it is smart to borrow Swiss francs at 3.75% and invest in international Brazilian bonds that pay up to 10% or more!

Subjects in the international investments sessions include a review of global stock markets, international currencies and international interest rates and how they are shifting versus the greenback.

Another session looks at where to find the best value international investments globally right now, plus how to spot the hottest international investment trends before they become hot.

We also cover how to cash in on currency shifts by making international investments through the Multi-Currency Sandwich (Borrow Low-Deposit High) tactic. This is a perfect time for such international investments using diversification of currencies and taking advantage of the currency distortions that now plague investors around the world.

Currency experts from Jyske Bank (Thomas Fischer was a currency trader for many years and Jyske is one of the major currency trading banks in the world) will provide data at that course on this subject.

We’ll study international investment portfolios that offer the advantage of diversification, in several cases into nine currencies and nine different investments of which more than half have strong A to AAA ratings. We will review any changes made in the international investments portfolios we track and update what and how currencies and interest rates may move in the months ahead.

#2: We’ll look at international investments in emerging stock markets and emerging bond markets as well. 2007 was the seventh consecutive calendar year in which international investments in emerging markets outperformed developed markets. In 2007 the MSCI overall Emerging Markets benchmark was up 23.8 % in US dollars compared to the MSCI World Total Return Index being down 0.08 % in US dollars.   See why 2008 fared worse for emerging markets and how this creates more potential value.

In 2008 emerging markets fell faster and further than major markets… but once again in 2009 they led the global investment pack.  Anders Neilsen, my Jyske account manager, is one of Jyske’s bond experts and will be on hand to answer bond questions.

This February’s International invest sessions look at which blend of emerging and major markets may work best in 2010.

How profitable? Though Jyske Global Asset Managers have been extremely conservative this year, their managed portfolios have risen between 12.2% and 34.4% depending of the risk profile and the size of arrangement.

Those with more emerging markets in 2009 made even more.  The emerging markets index (in US dollars) was up 58.99% compared to 23.05% for the major market index. Over three years the index on emerging markets was up 37.88% versus 17.27% for the world index. The emerging market index was up 35.63% compared to the world’s index rise of 18.43% over five years.

Then emerging markets recorded their highest ever quarterly returns in the second quarter 2009, and posted strong gains for the third quarter, up 37.4% in three months, which ranked as the ninth best in equity market history.

You’ll learn why in 2009 we were investing in BRIC countries (Brazil, Russia, India and China).These 4 countries now generate approximately 27% of the world´s Gross Domestic Product (GDP).  The average annual GDP growth of a BRIC nation was greater than 7% before the recession, as compared to approximately 2% for a G-7 nation.  In the first three quarters of 2009, the growth rate for the Chinese economy beat expectations with an outstanding 8.9%.   We’ll look at a special BRIC trading idea in our 2010 seminars.

#3: One session will especially focus on international investments in alternate energy and water. For example we’ll see why Hyflux (water cleaning membranes mainly in China ) rose from $1.50 to $5 in less than a year (and why it then fell dramatically). We’ll see why water shares are destined to grow. We’ll look at Vestas (windmills) shares also up from $50 to $106. Plus we’ll update our Green Portfolio. These shares are especially interesting now as they were especially depressed in the global meltdown.

This course goes far beyond just international investments in stocks, bonds and currencies. Other sessions cover:

#3: How to cash in on distortions in international real estate from Ecuador to Lithuania! We have gained much more than just profit and international business and international investing opportunity in our international real estate searches. We have gained incredible luxury, heart- warming sweetness, breath-taking beauty, much better health and pleasant surprises at every turn. Having lived, worked and played in Ecuador now for over a decade and a half, we’ll focus heavily there, but Ecuador real estate opportunity is just one small part.

For example we’ll see how to own Ecuador and Smalltown USA real estate for pleasure and profit.

The third session of the course looks at how have an international business for fun and profit.

Merri and our webmaster, David Cross join me in the third part of the seminar to look at how to have a small international internet business.

This portion of the seminar is highly practical and usable because it focuses on how to start really small…with minimal investments of time and capital.

Plus we show how to stay small (yet highly profitable) if desired. International business sessions include:

#1: How to have an International and Ecuador Import-Export Business anywhere.

We’ll especially zero in on Ecuador export business opportunities in carved wood, ceramics from Cuenca, carpets from Guano, silver and gold jewelry from Chordeleg, paintings and art, textiles from Otavalo, leathers from Cotacatchi and flowers from the Andes . For example you’ll learn how factories make bread dough jewelry that can be fashioned into high school and college mascots and purchased for pennies apiece (to be sold for dollars abroad). You see how the only native American owned mill produces coats, shirts, sweaters, hats, gloves and scarves in school colors of your choice (at really low prices). These can be sold for ten times their cost.

Here is what one delegate to our course wrote: “Warm greetings for you and Merri! I’ll be on that list of Millionaire women very soon, thanks to your wonderful guidance and tips. Thank you SO MUCH for the good work that you both do!!!”

Another shared this: “I love to travel, but since I’m not independently wealthy, I also need to make money. I made one of my dreams come true. I went to Ecuador . I attended Gary & Merri Scott’s import/export seminar, we visited artists, markets and villages. It was a treat to see the great variety of handmade items and meet the friendly artists. I started to see the possibilities. I filled my suitcases in no time. Most of those things were sold to coworkers and friends and covered the costs of my trip. Yeah!”

“I returned to Ecuador in October. I spent two weeks attending Spanish classes in Quito and the next two weeks shopping. Once home, I sold my goods at an international bazaar and again paid for my trip expenses.

“Do I plan to continue? You bet! I have ideas for other places to sell my goods and some great material for travel articles. I am learning more each trip and gaining experience and confidence and most importantly, I love doing it! Attending your workshop was the catalyst that gave me the courage to take the plunge. Thank you for enriching my life.”

#5: How to write and use publishing, seminars and how to use international internet opportunities to create your own global business from your home. You can run your global business from an office or at home! The internet makes this more possible than ever before.

In the course we use case studies of what we are doing now to show how to start small and grow on the internet! Imagine this. Merri and I have a tiny international business. Just two of us run this operation from a remote farm in the Blue Ridge, a small village in Ecuador and the Florida countryside. Yet our website is ranked among the top 20,000 sites in the USA.

By starting small and building with stepping stones and harmonious foci we now almost own several profit generating phrases at Google.

At the course, we look at how we use the Seven Ps (Person, Problem and Promise, Product) to zero in on key phrases. Then we use the Fifth P Promise to develop new customers. The Sixth P the Prospecting Path and Seventh P the Presentation we use at the internet.

This knowledge has really helped previous course delegates. Here is what one previous delegate just shared:

“Gary , I have been working on my website, healthy-holistic-living.com site and I figure it is time for another update. It is really hard to believe it, but my site just keeps growing and growing and I am now averaging 2000 visitors per day!

“What I find to be most amazing is that in just a few short months my site is #1 out of over a million sites and sometimes even millions of sites! As you always say the internet is the ‘Great Equalizer’ anybody given the right tools can compete on the internet.“

You will learn how to use the same system to expand (or start) your business globally!

#6: How to Cash in on Smalltown USA.

We’ll look at properties for sale in Central Florida. These areas have two unique features. First, they offer great real estate value. Second, they are great places to visit and live and do business.

Many readers combine a trip to our Florida or Blue Ridge courses with a chance to look around and inspect some property for sale.  Learn how demographics and population push (plus the water) and new Florida investments that have come to this area are likely to make this a hot spot in the decade ahead.  In Florida they often visit Orlando about an hour away… plus look at the great lake front properties available at really low prices.

We’ll introduce you to brokers we have used in Florida at the seminar.

#7: How to use the latest tax savings and offshore legal structures to gain the ultimate asset protection. Learn how to gain more than cash-freedom, friendship, financial security, prestige, tax savings, legal protection, fun, adventure, self-sufficiency, fulfillment and more satisfaction…by combining very small amounts of money with your time and energy in an international business.  Our friend and attorney for more than 20 years… Joe Cox will be on hand to speak and answer your questions also.

Previous course delegates have included business people, brokers and professionals, doctors, dentists, lawyers, retirees, couples wanting to get into international business together, insurance agents and marketers who want to enhance their existing business or build a second sources of income through international investments and international business.

Plus more.

We have invited more speakers than we have had in a decade to share this learning experience with you… at this seminar course… for ideas on health… green and quantum investing… asset protection and global business.

Quantum Health…. Sheri Clary.   Sheri helps us with our health.  Sheri is a nurse practitioner who with her husband, James Clary MD, have been helping delegates learn natural ways to improve their health.  Specializes in hormonal balance using bioidentical compounds.

Quantum Investing… Ted Tidwell.  Ted is the founder of 1st Envirosafety the maker of Ted’s Stuff… a colloidal compound that has been helping farmers globally as well as helping create global business opportunity for Americans and Canadians moving abroad.

Quantum Asset Protection  Joe Cox.  Joe has been my friend and attorney for more years than I care to remember.  He specializes in estate planning, insurance, trusts and taxation is a frequent speaker on tax planning topics such as income taxes, insurance trusts, irrevocable trusts and offshore asset protection trusts. He has also written hundreds of articles and books concerning income tax and irrevocable trusts.

Joe is listed in Who’s Who in America and Who ’s Who in American Law. Chosen by Florida Trend Magazine as one of the top 1.6% of lawyers in Florida and one of the top 34 Wills, Trusts, & Estate Planning lawyers. Chosen by Worth Magazine to be one of the top 100 attorneys in the Nation.

Third, the Valentine’s Treat.  The February seminar can help you live, work and invest better… but remember I promised a third benefit that Merri and I have added to make  you a Valentine hero.

We have booked all four days of this course to be conducted in a very romantic place, the Lakeside Inn in Mt. Dora Florida and have arranged discounted room rates for you.

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The Lakeside inn is a ‘National Historic Treasure’, listed on the
National Historic Register, that  has continuously 
operated as an Inn for more than 125 years,
the oldest operating Inn in Central Florida.

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The Lakeside Inn is located 40 miles Northwest of Orlando
 in in Mount Dora… our shopping town and known as 
the “New England” of Central Florida.

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Mount Dora is the Antique Capital of Florida,
where the Renninger’s Twin Markets draws thousands
 to the Antique Mall and Flea Market,
along with downtown Art Shows, Craft Fairs,
Music Festivals, Theatre, Antique Shows,
Classic Wooden Boat Shows, Sailing Regattas 
and Holiday Lighting Ceremonies and Parades.  The Captain Doolittle Eco Tours and Mount Dora Trolley
 and the antique train leave right from the Inn for daily excursions.

You’ll be able to enjoy this romantic view.  The inn sits on Lake Dora.

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When you enroll, we’ll send details on how to book a room for the seminar at the exceptionally low rate of $129 a night.

You are a Valentine’s Hero in Three Ways.

There you have… along with all the benefits of quantum wealth… international investing and business you get Ecuador roses, a Valentine’s party at our house and can stay with your Valentine at the incredibly unique and romantic Lakeside Inn.

There are three ways to attend our February tours.

Option #1: Come for the four day quantum wealth… international investing and business seminar.

Quantum Wealth Florida – International Investing & Internet Business Mt. Dora, Florida ($749) Couple $999

Option #2: Enjoy a split session. Come for the four day for quantum wealth… international investing and business. Then travel with us February 15 to Ecuador for one or up to four real estate tours.

Feb. 11-14  Mt Dora.

Feb. 15-16,  travel to and visit Quito.

Feb  17, travel to Manta.  Feb. 18-19,  Coastal Real Estate Tour.

Feb. 20,  travel to Cotacachi.  Feb. 21-22,  Imbabura Real Estate Tour.

Feb. 23-24,  Quito-Mindo Real Estate Tour.

Feb. 25 travel to Cuenca.

Feb. 26-27,  Cuenca Real Estate Tour.  Feb 29 end of tour.

Simply choose how many seminars and tours you’ll be on and enjoy the multi tour savings below.

Two Pack… 2 seminar courses & tours $998 Couple  $1,349 Save $149 on couple

Three Pack… 3 seminar courses & tours   $1399 Couple  $1,899 Save $98 single or $348 on a couple or more

Four Pack… 4 seminar courses & tours   $1,699 Couple $2,299 Save $98 single or $697 on a couple or more

Five Pack… 5 seminar courses & tours  $1,999 Couple $2,699 Save $496 single or $1,046 on a couple or more

Option #3. If you plan to attend six or more seminars and tours in 2010 save with an International Club membership.  See how to save here.

International investments and business can help your money grow and stop losing its purchasing power.

Previous course delegates have included business people, brokers and professionals, doctors, dentists, lawyers, retirees, couples wanting to get into international business together, agents and marketers who want to enhance their existing business or build a second sources of income through international investments and international business. Plus everyone wishes to improve their lifestyle… have better health and more ease in receiving income.

If you have or want to make international investments or have your own full or part time international business, you should contact us and make a reservation.

Your friend,

Gary Scott

P.S. One section in the Mt. Dora seminar shows how I turn a $950 direct mailing into $118,500 in three weeks. I added $9,875 a month to my income! This information is worth the cost of the course alone.

Ecuador Currency


Ecuador’s currency is the US dollar.

When Merri and I first arrived in Ecuador the currency was the sucre and it took 3,000 sucre to buy one dollar.  About five years after we arrived the sucre had dropped to about 8,000 sucres to buy a US dollar.  Then a decade ago the Ecuadorian economy went into self destruct and the sucre collapsed all the way to 25,000 sucres per dollar.

ecuador-real-estate-for-sale

The dollar still goes a long way in Ecuador. You can still buy beach condos like this for under $24,000.

This created incredible real estate bargains.  I began buying Ecuador real estate which is one reason I can sell Ecuador real estate now at below the market and still make a decent profit.

ecuador-real-estate

Large fixer upper houses like this in the Andes can still sell for less than $29,000.

However getting out of the sucre into the greenback was in a way like jumping out of the frying pan into the fire…. because since then the US dollar has dropped a lot in value compared to other currencies such as the euro.  Excerpts from our latest Multi Currency portfolio report show this fact.  Here is what that message said:

Since we are beginning a new decade it makes sense to look back a decade at the past multi currency action.

A reader just sent this note:  Dear Gary, I am worried by the breaking news that the “Bolivarian Alliance” is creating its own currency.

The news says:   “Countries of the Bolivarian Alliance for the Peoples of Our America (ALBA) agreed to introduce regional common currency, the SUCRE…”During the ALBA summit on Dec. 13 (In Cuba), nine member countries including Antigua and Barbuda, Bolivia, Cuba, Dominica, Ecuador, Honduras, Nicaragua, Saint Vincent and the Grenadines, and Venezuela announced the introduction of new virtual currency in January 2010.”  Thanks.

These countries have been announcing this type of stuff for quite some time.

You can see a 2007 article I wrote about this at Ecuador Currency Opportunity.

Announcements by governments are easy.  Actions not so much so.  Getting all these countries to actually do something together is not such an easy task.  Not much has happened from the 2007 announcement and I do not expect much to happen from the 2009 announcement.

Most of the countries above face enormous social and economic challenges in the decade ahead.  Keeping their own currency stable will be hard enough.  Creating a new one easy… but maintaining it hard.  Getting all these nations to work together to create one currency seems pretty unlikely.

The European Union and euro whose nations enjoyed  much greater economic success and stronger political stability, than the nations above took decades to create. The euro was driven by a real fear… a repeat of WW I and WWII.   Yet the euro has taken many decades to form.

Should we expect quick action for a union by Antigua and Barbuda, Bolivia, Cuba, Dominica, Ecuador, Honduras, Nicaragua, Saint Vincent and the Grenadines, and Venezuela? Remain watchful but do not expect anything too soon.

A better way to answer the US dollar dilemma  is to invest in the best value BRIC countries (Brazil, Russia, India and China) and speculate on the ups and downs of their value.

Here are excerpts from a recent Multi Currency Update I sent to our multi currency portfolio subscribers.

BRIC currencies make sense because these countries are still viewed as emerging markets… but they now are major economies.

Together, these four countries generate approximately 27% of the world´s Gross Domestic Product (GDP).

The BRIC economies are also growing faster than in the Western world.  The average annual GDP growth of a BRIC nation was greater than 7% before the recession, as compared to approximately 2% for a G-7 nation.

The future growth of the global economy depends largely on the BRIC economies continuing growth.

The simplest way to invest in BRIC economies is with a BRIC ETF like iShares MSCI BRIC Index Fund. This ETF tracks the MSCI BRIC Index and invests in about 260 different companies in these four countries.  Invest and leave the investment alone for long term growth.

Jyske Global Asset Management recommends BRIC allocation as below :

If you have a Low Risk profile                  : up to 5%
If you have a Medium Risk profile          : up to 10%
If you have a High Risk profile                : up to 15%

A more complicated but potentially more profitable approach is to weight your investments more heavily in the good value BRIC countries and sell shares in the BRICS with poor value.

Heavier speculation  could buy the good value BRICS and short the low value BRICS.

For example you can see below why right now may be a good time to sell investments in India and invest in China.

Learn how to read this entire update on why to sell these BRICS now as a Multi Currency subscriber.

A March 2009 report entitled “Ecuador Economic Worries” shows why the dollar’s fate is not so important to Ecuador when it says:

A number of readers have sent questions about Ecuador economic worries. One regular Ecuador economic worry I receive is that Ecuador will stop using the US dollar as its currency.

There is little doubt that Ecuador’s economy is in a mess.

Which economy is not?

We’ll look at this Ecuador economic worry in a moment, but to put this worry into perspective, may I share some other economic worries at the same time… plus post some photos from our friend, Dennis Goff… such as this shot from a boutique hotel in Manta, Ecuador where you can stay for $52 a night.

ecuador-economic-ideas

Ecuador has economic worries, yes, but are they worse than the economic worries in Europe or the US?   The photos show that while we worry we can be in paradise on a shoestring budget.

Read the entire article Ecuador Economic Worries here.

Learn more about BRICS. Join Merri and me along with Thomas Fischer and my portfolio manager, Anders Nielsen, at our February 11-14 IBEZ seminar.

Learn more at  Quantum Wealth Florida -International Investing & Internet Business, Mt. Dora, Fl.

Gary

If you plan to join us at six or more seminars and tours in Ecuador, Florida or  North Carolina in 2010 you can save as an International Club member.

See details about each of our seminar and tours below… then see our December special that allows you to attend as many of these courses you like at a huge savings.

For International Investing and Business.

For Super Thinking + Spanish

For Ecuador Shamanic Tour

For Ecuador Export

For North Andes, Imbabura & Cotacachi

For Manta & Mid Coast

For Quito & Mindo

For Salinas & South Coast

For Cuenca

You gain discounts by attending multiple seminars and tours.

Here are our multi tour adventure discounts.

Two Pack… 2 seminar courses & tours $998 Couple  $1,349 Save $149 on couple

Three Pack… 3 seminar courses & tours   $1399 Couple  $1,899 Save $98 single or $348 on a couple or more

Four Pack… 4 seminar courses & tours   $1,699 Couple $2,299 Save $98 single or $697 on a couple or more

Five Pack… 5 seminar courses & tours  $1,999 Couple $2,699 Save $496 single or $1,046 on a couple or more

Six Pack… 6 seminars courses & tours  $2,199 Couple $3,099 Save $795 single or $1,395 on a couple or more

But our 2009 International Club membership which allows you and a guest to attend as many of the 56 courses and tours we’ll sponsor and conduct in 2010  (fees would be $40,947 for all these courses individually) is only $2,999.

The International club fee rises to $3,500 in January 2010. Enroll in the International Club now at the original fee of $2,999. Save $501.

International Club 2010

Attend our 56 investment, business, Spanish, real estate and export, courses and tours in 2010 with one small enrollment fee.

International Club 2010 Membership Enroll here

Here are the 56 courses and tours you can attend free. Plus there is even one more savings you will see below.

Jan.   8-11     Ecuador Export Tour
Jan. 13-14     Imbabura Real Estate Tour
Jan. 15-18     Coastal Real Estate Tour
Jan. 19-20    Quito-Mindo Real Estate Tour
Jan. 21-23    Cuenca Real Estate Tour

Join us in February or March.

Feb. 11-14   Quantum Wealth Florida -International Investing & Internet Business, Mt. Dora, Fl.

Feb. 15-16   Travel to and visit Quito
Feb  17         Travel to Manta
Feb. 18-19   Coastal Real Estate Tour
Feb. 20        Travel to Cotacachi
Feb. 21-22   Imbabura Real Estate Tour
Feb. 23-24  Quito-Mindo Real Estate Tour
Feb. 26-27  Cuenca Real Estate Tour

Mar. 11-14     Super Thinking + Spanish Course, Mt. Dora, Fl.
Mar. 15-16    Travel to Quito and Andes
Mar. 17-18     Imbabura Real Estate Tour
Mar. 19-20    Cotacachi Shamanic tour
Mar. 22-23    Coastal Real Estate Tour
Mar. 25-26    Cuenca Real Estate Tour
Mar. 28-29   South Coast Real Estate Tour

Apr. 12-15   Ecuador Export Tour ($499 or couple $749)
Apr. 17-18   Imbabura Real Estate Tour ($499 or couple $749)
Apr. 20-21  Coastal Real Estate Tour ($499 or couple $749)
Apr. 23-24  Quito-Mindo Real Estate Tour ($499 or couple $749)
Apr. 26-27  Cuenca Real Estate Tour ($499 or couple $749)

May  13-14     Ecuador Shamanic Minga  ($499 or couple $749)
May  16-17    Imbabura Real Estate Tour  ($499 or couple $749)
May  19-20    Coastal Real Estate Tour ($499 or couple $749)
May  22-23    Quito-Mindo Real Estate Tour  ($499 or couple $749)
May  25-26    Cuenca Real Estate Tour  ($499 or couple $749)
May  28-29    South Coast real Estate Tour ($499 or couple $749)

June 24         Quantum Wealth North Carolina
June 25-27    International Investing and Business North Carolina  ( $749 or couple $999)
June 28-29   Travel to Ecuador and Andes
June 30-Jy 1 Imbabura Real Estate Tour  ($499 or couple $749)
July 3-4          Coastal Real Estate Tour   ($499 or couple $749)
July 6-7          Quito-Mindo Real Estate Tour    ($499 or couple $749)
July 9-10        Cuenca Real Estate Tour   ($499 or couple $749)

Sept.   3-6      Ecuador Export Tour  ($499 or couple $749)
Sept.   8-9      Imbabura Real Estate Tour  ($499 or couple $749)
Sept. 11-12     Coastal Real Estate Tour   ($499 or couple $749)
Sept. 14-15     Cuenca Real Estate Tour    ($499 or couple $749)
Sept. 17-18     Ecuador Shamanic Minga  ($499 or couple $749)
Sept 20-21      South Coast Real Estate tour ($499 or couple $749)

Oct.    7          Quantum Wealth North Carolina
Oct.   8-10     International Investing & Business North Carolina ($749 or couple $999)
Oct.   11-12    Travel to Quito and Andes
Oct.  13-14     Imbabura Real Estate Tour ($499 or couple $749)
Oct.  16-17     Coastal Real Estate Tour ($499 or couple $749)
Oct.  19-20    Quito-Mindo Real Estate Tour ($499 or couple $749)
Oct. 22-23     Cuenca Real Estate Tour ($499 or couple $749)

Nov.    4-7        Super Thinking + Spanish Course Florida ($749 or couple $999)
Nov.    8-9       Travel to Quito and Andes
Nov. 10-11       Imbabura Real Estate Tour ($499 or couple $749)
Nov. 13-14      Coastal Real Estate Tour ($499 or couple $749)
Nov. 16-17      Quito-Mindo Real Estate  ($499 or couple $749)
Nov. 19-20     Cuenca Real Estate Tour ($499 or couple $749)
Nov  22-23      South Coast Real Estate Tour (($499 or couple $749)

Dec.   3-5       Ecuador Shamanic Mingo  ($499 or couple $749)
Dec.   7-8       Imbabura Real Estate Tour ($499 or couple $749)
Dec.  10-11    Coastal Real Estate Tour ($499 or couple $749)
Dec. 13-14     Quito-Mindo Real Estate Tour ($499 or couple $749)
Dec. 16-17      Cuenca Real Estate Tour ($499 or couple $749)

If you join the International Club, the entrance fee for 2010 is $2,999 (until January 2010).  Your attendance fees at all courses will be waived. You and your guest can attend courses worth $40,947.

You can calculate the savings as our schedule of all 2010 courses is shown below.

Arrival dates are always one or two days earlier. Please double check with us before booking flights.

I invite you to be a member of the International Club which allows you and your guest of your choice to attend all of these courses which are valued at $40,947!

International Club 2010 Membership Enroll here

You may well wonder why I would make such an offer and ask why the cost is so low? Let me answer this question frankly and from the heart.

First, it helps us do a better job for you. We feel greatly enriched when we can really help our clients improve their lives. We have learned through years of experience the best way to do this is to meet with you regularly. We can best help you learn how to improve your health and wealth through continual expansion of knowledge.

Second, we gain enormous fulfillment from the many friendships we form through the years. Our friends have enriched our lives tremendously. Let me explain this in more detail.

As a member, you will be part of our international family that meets intensively over the next year to examine ways we can make our lives better. Our goal is beyond just having money. Our goal is to have quantum wealth… good health… wealth and fulfillment through service.

Though I give all course delegates my very best, I cannot help but to do a better job for those who come again and again. As we meet often; your particular wants, needs and desires become clear, and it is easier for me to point you in the right direction.

Another phenomenon is that repeat delegates help each other! They get to know one another, help each other learn, share their insights, make contacts and gain more wealth.

Out associates in Ecuador, are experienced business people who live or work and conduct our real estate and export courses.  They can also act as your local backup for the business.

Lifestyle for Two. There is more! I have learned at my courses that many repeat delegates were couples.

We want couples! As a member of the program, you are entitled to bring another person to every single course or tour. The cost for that extra person will be ZERO!  You can bring whomever you wish. Bring your spouse, a friend, son or daughter, partner, accountant, adviser. You can bring the same person each time or a different person, whomever you choose to accompany you. (Accommodations and air fares relating to the courses are not included for members, delegates or their guests.)

Won’t you join us in this exciting club and share Merri’s and my lifestyle for the next year? We look forward to seeing you at as many courses as possible and sharing this wonderful world of abundance and well being with you!

Gary

International Club 2010 Membership  Enroll here

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

garyheadshot

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

Screen Shot 2017-08-08 at 6.52.12 AM

Screen Shot 2017-08-08 at 6.52.22 AM

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.

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seminars

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

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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.

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keppler asset management chart

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ecuador-seminar

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Gary

Ecuador Demonstrations


There were some Ecuador demonstrations last week.

ecuador-demonstrations

This and the AP photos below by Dolores Ochoa show Ecuador protesters blocking the Pan Am Highway. See excerpts of the related article below.

Merri and I are used to these Ecuador protests as they are part of life in Ecuador. Though we have not seen any Ecuador demonstrations for several years,  they represent a good part of the Ecuadorian way and I am proud of how the  people exercise their democratic rights…. peacefully… but effectively.

The French use demonstrations as well and remember France is where many of the current ideals of democracy as we know them and processes that helped the industrial revolution really begin.

Yet the French leave cars flipped and shops burned. Remember what they did to some of their royalty!  In Ecuador violence is rarely the case.

ecuador-protests

Part of Ecuador’s political problems are created because the majority of the population are very poor… and poorly educated… but they are gaining.  This is Maria…  excited to be headed on her first day to university to study tourism management through a scholarship provided by our foundation, Land of the Sun.

Merri and I have been in the midst of several Ecuador demonstrations.  Our first protest party took place many years ago in the 1990s.  We had to get a friend from Latacunga, (one of the most active places for demonstrations), to Quito airport.

There is a “moving through Ecuador road blocks art” that we learned.

ecuador-protests

Ecuadorians are by nature friendly and easy going. Violence is rare… in their protests, crime or politics. These girls attend the Topo Grande school that Land of the Sun foundation is assisting.

In that first protest adventure we were with a yatchak… in his car… a four wheel drive. This meant that  a lot of the demonstration avoidance tactics came in the form of driving down railway tracks, through football fields and for quite some distance on the grassy path that formerly was the Incan trail.

Eventually however one meets a roadblock.  On that trip the yatchak did most of the work. As gringos we stayed in the car and let the yatchak do the talking.  Most road blocks are more like street parties… the blockers only half serious. There are generally two types of demonstrators… those with a real gripe and the majority who see the demonstration as a sort of fun time.

If you meet up with the party types… usually a dollar or two is a sufficient consideration to be able to move on IF one approaches the road block correctly… never with pushiness or aggression.

If one meets up with those who have a true grievance… the process is more difficult but usually  an earnest listen to their complaint… a murmur of agreement, some sympathy and an explanation of why you need to pass through, with perhaps a dollar or two will open the block.

In that first trip, the taxi drivers had the complaint… so they were the hardest nuts to crack… but the yatchak never failed.  Gentle words… appreciation for their plight and explanation of our own problems always opened the gates.

That trip to the airport took much longer than normal… one does not rush through these events… but we were able to help our friend board his plane on time.

Our second Ecuador demonstration trip took place on the day before one of our seminars in Ecuador.  Talk about terrible timing!

We always met delegates when they arrive at the airport the day before the seminar so we needed to travel from Cotacachi to Quito.  Normally we would make the two hour trip via the Pan American highway.  But Otavalo is another major, strong point for demonstrations.

We have developed a network of friends across the country so we knew that the Pan American was tightly closed.

So we headed down the back roads with an intrepid taxi driver who knew the ropes.

At each road block I would lay down in the back seat, close my eyes and groan.  Owh owh owh.

Merri, looking as pathetic as possible, rambled on “Me esposa necesita un hospital”.

The taxi driver requested clearance to the “hospital” and offered a few dollar for the favor.

This worked half way to Quito.  However there are some road blocks that just cannot be passed.  We found such a place where one group had dug a large pit through the road.

ecuador-demonstrations

Another AP photo shows how some road blocks cannot circumnavigated.

Here I experienced a major recovery from my illness, grabbed our suitcase and we walk through the burning tires… NOT LOOKING ANYONE IN THE EYE.

The only hangup came when our hound dog Ma became tangled in the wires from burned tires. On the other side of the road farmers awaited with their pickups.   For $20, they were willing to give us a lift into town. The normal two hour journey turned into six…. but we were there, smiling when our delegates arrived.

The demonstrations (as with those last week) lasted only a day and we accompanied our delegates on the bus back to Cotacachi next day on the Pan American highway.  No one really suffered.

In short Ecuador demonstrations can range from kinda fun to frustrating… but rarely dangerous… as long as one takes their time, remains passive and avoids getting involved.   These Ecuador demonstrations, are in my opinion, a good part of Ecuador’s democratic process.

I expected political tensions to tighten in January… but they seem to be winding up sooner.

Here is my thinking why there will be more political turmoil in the months ahead.

Part of Ecuador’s political problem began over 500 years ago when the Spanish began colonizing the area that is now Ecuador. The system favored a few at the expense of the majority and has remained that way.

Today the majority of the population is indigenous….but historically have had little political power and they have the smallest portion of wealth and income. Here is a resident of the village of Topo Grande.

ecuador-protests

Slowly they have become increasingly organized and must be considered as a political power that now determines elections.  Yet due to the fact that they still remain among the poorest sector of the population, they also understand the global economy the least.

Almost every Ecuador president, since Merri and I began living in Ecuador, has been elected in part by making promises to poor people, like this lady above, that could not be kept.

President Correa is included in this definition and had two added benefits… his ability to speak Quichua (the indigenous language) and high oil prices when he entered office.

Oil revenues provide the major part of the government’s income and the high prices allowed Correa to keep many of his promises in his first years in office.

Then oil prices dropped and the government began cutting back.

This put so much pressure on the government income that in July 2009 it sold a billion dollars of oil to the Chinese.

An excerpt from a Reuter’s article entitled “Oil-hungry China moves to strengthen Ecuador ties” explains as it says:  QUITO (Reuters) – Oil-hungry China is moving to strengthen ties with OPEC member Ecuador, part of a global trend in which the Asian giant is providing billions of dollars in financing to producer nations to guarantee energy supplies.

Ecuadorean President Rafael Correa said on Saturday the country will receive $1 billion as advance payment for future oil sales to China. Ecuador sends most of its oil to the United States, and is trying to diversify its market.

Details remained unclear on Monday. But China, the world’s second biggest petroleum consumer after the United States, is striving to cement better ties with resource-rich Ecuador.
Chinese company Sinohydro is bidding for a contract with Ecuador to build a $2 billion hydroelectric plant in the country.

In addition, the leftist Ecuadorean government says it is in talks with Chinese companies interested in investing in the Manta air base, which the U.S. Army is due to leave in September. Ecuador wants to build a commercial airport in Manta.

According to the Chinese customs office, China imported 326,000 tonnes of crude oil from Ecuador in the first four months of 2009.

Ecuador is the fifth largest producer of crude oil in South America after Venezuela, Brazil, Argentina and Colombia. It produced 486,000 barrels of crude oil a day in May.

Impoverished Ecuador faces a liquidity crunch due to low oil prices. The government’s recent debt default has shut the country off from the international capital markets.

Here is how one sharp Ecuador businessman explained the problem to me.

The government took payment now on 30% of its future oil, beginning next January to balance the current budget. How will it balance its budget next year with only 70% of its oil?

This leaves the Ecuador government only two options… higher gas prices… a factor beyond its control… or a cut back which means breaking more election promises.

That’s why it made sense to me that demonstrations would start next year not now.

However I was wrong. On hearing of the demonstrations I wrote to a network of friends and contacts across the country to get people’s opinions. Here are some of the replies I received.

Business person from Manta:

Dear Gary, Today Sunday the indigenas stared to make groups in different places of Guayaquil  and especially Quito. It Iooks like they want to make strikes tomorrow and to close main roads especially in highlands areas.   Until this moment everybody is quiet and nobody worries over  that situation.  The people are asking for solutions to water problems and something more.,

I think we have to see what happens tomorrow and hope that there is nothing more than a one day demonstration.

The Real Estate Tour in Manta was very good yesterday.  The people were very nice and it looks like two couples and two men are planning to stay in Manta to see more properties.

Demonstrations have been brewing and are now taking place on two fronts.

One of them regards schoolteachers that are part of a much politicized association called UNE (Union Nacional de Educadores – or National Teachers Association) who opposes the widely celebrated regime effort to bring higher quality to public schooling via teacher examination and training.

UNE appears to be divided in this and the government is gaining ground in this legitimate endeavor.

The other front regards mostly the indigenous population (also somewhat divided), who opposes the draft for the new Water Law, claiming that it will “privatize” water, something that has no grounds.

They say that they have not been taken into account in drafting it and that it has elements for the privatization of water. Please note that the indigenous peoples of Ecuador are very dependent on natural water sources for their livelihood.

The indigenous population is adept at closing-off highways in very disruptive demonstrations.

So far it seems that the demonstrations have been mostly mild but it’s hard to tell if they will flare-up big time.

The indigenous people also oppose the new mining law on environmental grounds. The general public believes this new mining law is important as it provides environmental safeguards but also allows the exploitation of our mineral riches under a better framework. There are always tradeoffs of course.

President Correa’s Government keeps a very high level of support amongst the population and has been extremely able to defuse situations like this, even though it has had a confrontational stance.

Change brings discomfort and demonstrations are part of our culture. I hope and trust they fade away amidst inclusive dialogue.

It seems that by Tuesday the demonstrations were defused. The biggest supporters have lifted their demonstrations in order to start a dialogue process.

Some fringe groups still remain protesting but for the most the demonstrations should be over now.  Best regards,

Business Person from Puerto Viejo

Hi Gary, Sorry I could not get back to you before.

As you probably know already, demonstrations have been going on this week.  There  are several groups such as teachers (UNE), indigenous people (CONAIE), high school and university students and other small groups who have gotten together protesting against different things they consider that violate or diminish their rights:  all of them have in common their opposition to the government, although the majority of them were part of the government in the past .

Each of the group is protesting against a particular law that is about to pass in the congress:  CONAIE  are against Ley del Agua or a law which regulates water and that in their opinion privatizes the water.  UNE or the teachers are against a new law of secondary and elementary education and also against some regulations that will reduce their salaries.  Students are also against  the law of university education which will not allow to have private universities in the future.  Of course political parties are also involved in these demonstrations.

CONAIE is now splitt and having talks with the government so I do not expect their strike to be as strong as in the past.  UNE  or the teachers are the ones that seem to be stronger and they are right now in their third week of protest.

Please let me know if you need more information or comments on these issues.

Kind regards,

Vilcabamba Teacher:

How are you?  I just read a little about this problem in my Country.  You know I feel sad about it because the only people who suffer the consequences are the students, right now the public schools and some universities are closed, students are in their homes.

UNE (national union of teachers) is protesting for 3 reasons:

1) The Ministerio de Education did some kind of administrative process against the teachers who did not do a test (I do not what kind of test) before, this administrative process could cause a teacher to be fired, so, UNE do not accept this process.

2) Also UNE protests about the new reforms in the law that reduce 1.5% of their salary.

3) UNE protests because a new law says that school´s authorities should get a commission of service without a salary.  Regards

Quito Businessman

Hi Gary,  There are 2 ways to read into this:

1.  Correa is trying to clean up the mess that Ecuador’s education system has grown into over the years, with UNE, the main teachers’ association becoming a by-product of the left wing political party MPD.  He has run into opposition and this has lead to the UNE’s strike which started last week.

He is also trying to put some order into the way water rights are distributed and managed in the country, thus angering CONAIE (whom he no longer needs as a political support base because through the same CONAIE and Pachakutik he has gained direct access to the indigenous people by providing them housing, infrastructure, etc.).

Now it turns out that the UNE strike will tie into the CONAIE demonstrations, and things could turn nasty next week.

2.  Correa has become obsessed with his power, and as such is trying to get control of every aspect of Ecuadorians’ life, including education, the use of land and water, the economy in general and of the production and industrial sector (taxing importers out of business in order to support local industry).  In doing so, he has alienated many of his former allies and has made worst enemies of his former foes.  This is unsustainable in the long run and the first signs that his government is heading into severe difficulties are starting to appear.  As you are aware, Correa has a very aggressive political style, criticizing his opponents and trying to make anyone who does not support him look bad and ridicule.  This has its cost and now Correa may be starting to pay the price.

Frankly speaking, I do not know how serious that is.  The main support of Correa’s “Citizens Revolution” has been the poor people.  If they start to turn against him, I do not think he will fare very well.  On the other hand, these demonstrations may just be caused by a minority of UNE and CONAIE, in which case, they will pass and it will be business as usual in Ecuador.   It is hard to tell at this time, but one thing that is for sure is that people are starting to run out of patience with respect to Correa.  We will have a clearer picture by next Monday, because it will be possible to gauge how strong and successful CONAIE’s closing of roads turns out to be.  Best,

Loja Businessman:

University and high school teachers have been protesting the elimination of a 1.5% payment and a couple of other issues. These protests began last week.

This is normal in Ecuador particularly by the union involved. They like to do this in the beginning of the school year.

The police are involved which makes this more serious, but I don’t know how serious.

Guayaquil businessman:

Gary, I do not see it so bad.

Ambato Investor:

By the way, from reading the article, it is not so against the Correa-Government.  Nonetheless, there has been some small protests in Ambato as well.

Coastal Businessman

Gary, thanks..I am in San Clemente and no demonstrations here!

The students and the teachers have always spent most of the time demonstrating..but of course the government thought they would avoid demonstrations against them with the “peoples revolution” slogan..

The indigenous people seem to want to march again against the new mining law and the governments intent to start big scale mining operations to improve finances..

I do not think any of these demonstrations will be even close in size to what they used to be during previous governments..basically because all these movements supported the government and it’s policy and many still do..They also lack the charismatic leaders they once had.

Regards,

This last comment seems to be supported by excerpts of an Associated Press article entitled “Ecuador Indian group protests water, mining laws”: The Associated Press  QUITO, Ecuador — Hundreds of Indians blocked Ecuador’s Pan American highway in several provinces Monday with rocks, tree trunks and burning tires to protest new water, mining and oil laws.

Their leaders suspended the protest late Monday, saying the government had promised to talk about their objections.

The Indians contend the proposed the laws threaten their lands and will privatize water resources. Leftist President Rafael Correa disputes that view, and the ruling party-controlled legislature has been expected to approve the laws.

Monday’s protests on the main national highway paled in comparison to protests that ousted Ecuadorean presidents in 2000 and 2005.

ecuador-demonstrations

Third AP photo from this article.

Things are improving. Ecuador’s indigenous are getting richer and better educated.

ecuador-protests

Enrique is one of the excellent Cotacachi indigenous builders who is developing homes in Cotacachi. He is among a growing sector of hard working, highly successful and dependable indigenous businesses that help form a strong, integrated  middle class in Ecuador.  Be sure see to see some of Enrique’s houses at this site next week.

Ecuador demonstrations are a part of Ecuador’s democratic process.  Since moving to Ecuador I have seen many presidents comes and many go… very few serving their full term… a process I like better than having a bad president last.    President Correa has enjoyed a time without Ecuador protests because of high oil prices and his willingness to default on Ecuador bonds.  That former decision is now biting him back… along with low oil prices… so more and more are saying… “throw the bum out”.

Wouldn’t it be nice if we could do this at home?

Gary

Combining good international investing with the greatest asset of all, the ability to earn wherever you live, brings everlasting wealth.

This is why we offer our course Tangled Web… How to Have an Internet Business.

A clear mind and healthy body are also a vital assets… plus a second language is a powerful diversification tool.

This is why I am willing to pay you $300 to attend either our Ecuador Super Thinking plus Spanish seminar in September or our North Carolina International Business & Investing seminar in October.  Sign up for either seminar and I will email you our Tangled Web… How to Have an Internet Business Course (offered at $299) free plus I’ll knock an extra dollar off your seminar fee…. to round up the $300 savings.

See details of the two seminar below.

ecuador-seminars

Delegates at our Ecuador seminars and tours enjoy Ecuador music.

Join Merri, Thomas Fischer of JGAM, our webmaster David Cross and me in North Carolina this October and enroll in our emailed course on how to have a web business free.  Save $300.

Learn more about global investing, how to have an international business and diversification in Ecuador at the seminar.

Oct. 9-11 IBEZ North Carolina

Here is an email for a recent seminar delegate: Hello Gary and Merri,  I have wanted to write to tell you how much we enjoyed your IBEZ seminar, and to thank you both for inviting us all into your lovely home for lunch last Sunday.  Merri, again, thank you for taking the time to prepare foods especially for me; they were delicious, and I appreciate your effort!  Thank you for a thoroughly enjoyable, very well done, stimulating seminar.  I came away not only with all the notes provided, but also with many ideas which I plan to begin working on now that we are back home.  Wishing you all the best,

Or join us in Ecuador and learn more about living and retiring in Ecuador.

ecuador-exports

We take delegates on our Ecuador seminars to Otavalo markets.  Many buy enough goods to resell in North America to pay for their entire trip.  Ecuador textiles like these I photographed in Otavalo are popular.

Here are comments from one seminar delegate about the followup from our course:  Gary & Merri –
I know why I get a ‘warm and fuzzy’ feeling when I see your two names in the ‘From’ column of my emails!  I sincerely hope that others are getting that same satisfaction.  Thank you both again for the help and assistance in getting to Ecuador.

October 16-18 Ecuador Southern coastal tour Sold Out

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

Nov. 6-8 IBEZ Ecuador Seminar

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

December 6-8 Beyond Logic Shamanic Tour

December 9-10 Imbabura Real Estate Tour

December 11-13 Ecuador Coastal Real Estate Tour

Attend any two Ecuador seminar or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

“Oil-hungry China moves to strengthen Ecuador tieswww.reuters.com/article/GCA-Oil/idUSTRE56C6FF20090713

www.thestate.com/world/story/962859.html?RSS=untracked
Ecuador Indian group protests water, mining laws

Investing Internationally


Investing internationally with thought about reflexivity can improve your wealth.

See three thoughts below that can help bring you everlasting wealth.

#1: George Soros’ thoughts on international investment reflexivity and how the power of thought affects investing and business internationally.

#2:  More on Ecuador’s government’s plan to take over a number of  TV and radio frequencies.

#3: An update on international emerging market values…

International Investments & Reflexivity

Investing internationally can bring everlasting wealth if your logic can adapt and focus in new and meaningful ways.  One way to focus your investing logic is by understanding reflexivity.

The term reflexivity was coined by George Soros.   His thinking on investment markets can help investors because the philosophy has proven success.

Part one of his book “The New Paradigm for Financial Markets” shows how we as investors and as a society need to think outside the box.  This section of the book makes seven points:

Point #1: Understanding world is inherently imperfect because we are part of the world.

Point #2: There are two functions in our thought… understanding the world … cognitive thought and having impact and taking advantage of the world… manipulative thought.

Point #3:  These two functions counteract one another. Manipulation requires intentions and predictions which are not fact.  So our beliefs and expectations can hinder our ability to see fact.

Soros writes in this book: “Take the stock market as an example People buy and sell stocks in anticipation of future stock prices, but those prices are contingent on the investors’ expectations. These expectations cannot qualify as knowledge.

Point #4:  Supply and demand are not independent of people’s expectations.  This means that the element of uncertainty cannot be be eliminated. Yet market theory that rules most investing and most government intervention in markets ignores this fact.

Point #5:  Social events have a different structure from natural phenomena.  Natural phenomena has a causal chain that connects one event directly to the next.  Human affairs include participant’s views. These views affect the causal effect and the participant’s views which creates self reinforcing loops.

Point #6: Natural events happen. Participants can affect what happens next with their decisions but cannot base their decisions on true knowledge because their decisions alter the truth.

Point #7:  At times reflexivity makes the abnormal normal.

Soros’ philosophy is supported by Heisenberg’s Uncertainty Principle that states that certain pairs of physical properties, like position and momentum, cannot both be known exactly.  The more precisely one property is known, the less precisely the other can be known. It is impossible to measure both position and velocity of a microscopic particle with any degree of accuracy or certainty. This is not only a statement about the limitations of a researcher’s ability to measure particular quantities of a system, it is a statement about the nature of the system itself… the fact that the act of measuring anything alters the very thing being measured.

This would make it seem that we cannot really gain an understanding of what will happen with any international investment or business.   This is true.

However there are ways we can come closer to understanding… because we are a part of nature, which by definition makes us part of and in touch with everything.

Access to this infinite knowledge is via our more subtle brain waves.

Access to these waves can come in many forms.

Soros claims to have many ways to access this greater knowledge but in his book his son wrote:  My father will sit down and give you theories to explain why he does this or that. But I remember seeing it as a kid and thinking, at least half of this is bullshit. I mean you know the reason he changes his position in the market is because his back starts killing him. It has nothing to do with reason. He literally goes into a spasm, and it’s his early warning sign.

Some would call it intuition, instinct, gut feeling and perhaps these are just ways of describing getting in touch with a deeper, non linear, infinite field of intelligence that all receive but few tune in.

We cannot define infinity and logical thought by definition must be linear.

Final decisions should be rational and should come from our logic… but logic by its nature must be focused on a very narrow path.  This means we need a way to let our intuition tell us when we need to shift the focus of our logic on a new path outside the box.

One way the yatchaks (means to know) of the Andes and wise people everywhere is to look for signs of nature.

One term used for these signs is totems.  For example, my totem is the Heron.

So let’s ask what in the heck do Herons have to do with international investments?

The answer is nothing and yet everything…

international-investment-thought

Here is an explanation about totems from Speaker for the Animals:

Heron – Aggressive – Self-Reliance – Self Determination  Heron links two worlds: the waters of life—the Unconscious, and the air—the realm of the conscious mind. He feeds on fishes, which symbolize the treasures of the Unconscious mind: spiritual nourishment for the Seeker. Yet he is also a creature of the Earth, so he is a grounding influence for people who spend too much time in their minds and who are called to ‘fish’ in the waters of the unconscious.

The legs of Heron are long to “stand” the deep waters of the Unconscious: the Waters of Lethe bring sleepiness and unconsciousness if one is not awake, aware and wary. Heron is a solitary fisher; if you call upon Heron to be your own totem, you must be able to stand alone as you seek, for there is no one to call on should you step into too-deep waters.

Heron’s strength for those of us who spend too much time ‘in our minds’ is that he brings one down to Earth. With Heron as your guide, he will bring you to ground to explore life here in the physical instead of just daydreaming or losing oneself in one’s imagination or dreams.

We’re unconventional, hearing our own inner drummer. We don’t worry about ‘keeping up with the Jones’s, doing what others do, believing what others believe, valuing what others value. If there is a weakness, it is that Heron works too hard at its fishing because he is a superb ‘stalker.’ He spends long hours standing and watching for a movement in the water, and needs sometimes to ‘loosen up’ and spend more time playing, courting lady herons or just snoozing in the Sun.

Most people, as Ted Andrews says in his book Animal Speak, would never choose to live this way: “It is not a structured way, and does not have a stability or security to it. It is though, just a matter of perspective. There is security in heron medicine, for it gives the ability to do a variety of tasks. If one way doesn’t work, then another will.”

Solitary in nature, Heron people follow their own path. They learn self-reliance. This is a valuable character trait in these times of conformity and homogenization of values. Heron people can stand alone, listen to their own inner wisdom, and go their own way when everyone else is conforming to society’s commands. In this way, they build their own ways to be as well as choose their own way of doing. They are individuals first.

Herons are active in my life and I have painted one (inspired by Audobon’s Heron) that hangs in the entrance to our house.

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So when the Great Blue Heron that lives on Little Horse Creek flew from our high mountain bog right over this morning, I dug out my copy of Animal Speak.

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I rethought my business and investments in contrast to the symbolism of the heron.  This never happens without my coming up with some worthy thought.  Today it related to a partnership I was looking into.  I reread Solitary in nature, Heron people follow their own path. They learn self-reliance.

This started me rethinking if Merri and I really want a partner. This started me looking at the business in a very different way.

Ecuador shamans and yatchaks use this process extensively and call it shape shifting. They place themselves in the spirit of their totem and this forces them to think about whatever subject they are concerned with in a different way… thinking like a heron or eagle or condor definitely puts you out of the box!

I did not come to any conclusions about my business decisions because I saw a heron.  The fact I saw a heron caused me to sit down and use my logic to rethink my plans in a different way.

Learn more about how to improve your thought process here.

Ecuador Radio and TV

On the subject of Ecuador, a previous message shared news about the Ecuadorian government’s plan to seize a number of radio and TV stations and promised to stay tuned to what happens.  I have asked many of my trusted sources in Ecuador for their opinions which we’ll share in various messages.  Here are two from businessmen in Ecuador.

The first contributor was quite negative when he wrote:  The first thing to take into account is that he is actually proposing control over the press not only within the countries but at a international
level. What he is saying is that countries like Venezuela, Bolivia, Ecuador and others, should create an international committee that will oversee what the media is saying about the governments.

Ecuador is following the Venezuelan model, so if you see that Chávez is pushing for a new legislation that control the media and whatever content they have that may “threaten” the nation security, Ecuador will follow that soon. Below is what Venezuela is doing, they actually want to sensor the information that the media exposes meaning that if who oversees the media thinks that this or that information is “bad” for the country, the media or the anchor will actually face justice and may even go to jail for at least four years. They closed 32 radio stations and 2 tv stations.

Rafael Correa, the President, said that his team was about to revoke some radio frequencies depending on the outcome of a report that his government is finishing. This will mean that whatever happens will be done in the next weeks. Critics claim that this was not done on a technical level but on a political one, opening the door for the government to possibly revoke the frequencies of radio stations or TV stations that oppose the government.   On this matter nothing is sure yet, but Conartel, which oversees the media, actually punished a TV station, Teleamazonas, that opposes the government.  The fines were applied to that TV station one time, by law the second time they must close for about 90 days and the third time they must close forever. They censored the Simpsons also from that TV station and there was a public outcry because Conartel and the government threaten to punish them.  We figure that since he started a new period, things will start to happen in the coming weeks, so far nothing is concrete yet.

He was not totally negative though and added: One thing although is that the government is not talking about taking over TV stations or radio stations, but revoking the frequencies. But take this into account, the government actually took over some private TV stations, they got them as part of a debt that Filanbanco, a bank, had with the government back in the crisis of 1999. This appears to be a separate thing. On the same takeover they got two TV stations plus a newspaper El Telégrafo.

The second contributor feels good about this new and wrote:  Hi Gary,  I have lived here full time for over 9 years and have seen the corruption and I believe that Correa’s intentions are more good than bad. I believe that many things that he does for a good reason while he is working on removing corruption are turned into bad press by the opposition. The same opposition that stole from the people of Ecuador throughout history, and want to regain control and steal from them again. I think that the Wall Street Journal article you wrote about says a lot. It says to me that he is going through the licenses one by one to find out if the licenses were granted illegally through corruption and payoffs. If they were granted legally, no problem…..and if they weren’t we are going to suspend the license and you will have a chance to prove that you obtained it legally.  A year or so ago, two television stations were taken over, with the same uproar in the press. But the truth is that they were taken over because the owners of those two stations were the owners of one of the banks that went under when they took all of the depositors money and went to Miami to live happily ever after. Well, Correa went after their assets ( a first for a president to go after someone like this) and some of those assets were the two tv stations. So we need to look past what the press says as many of them are owned by this type of opposition. I see Correa in a similar boat that President Vicente Fox of Mexico was in a few years ago, when His party was elected after over 100 years of severe corruption by the ruling party and he wanted to remove that corruption. He was also fought along the way by the opposition that wanted the power back to again steal from the people. It is a very difficult job that Correa has ahead of him, and I hope that he can succeed and become possibly the best president that Ecuador has ever had.  Regards.

We’ll be providing a full report on the radio and TV position to our Ecuador Living subscribers

Emerging Markets Update

We’ll share more comments about international investments in Ecuador in upcoming messages… but let’s use our logic here to look some more at international investments in all emerging markets.

One problem many investors have when using non linear approaches to international investments is that they forget the final logical step…. which is to come back and end in the logical mode.

Thinking outside the box does not mean we should just ignore what is in the box. We want to use our logic to reflect on “in-the-box-stuff” in different ways.  If we do not know what’s in the box then we won’t know when we are out of the box.   Boxes exist for a reason.  At times the box.. assuming the box is the norm… but Soros says “is abnormal.”    We need to conclude if the box is normal or abnormal which dictates that we do examine what’s in the box.

Thinking outside the box does not mean we should abandon logic.

So I may sit down and rethink everything… or something I am doing when I see a heron… but I add that to my traditional logical thought.

This is one reason why we regularly review Michael Keppler’s major and emerging market value analysis.  Kepler is a statistical genius and guru…. very institutional… logical mathematical .

What I search for are strokes of intuition supported by such logic.

This morning for example their were three crows grazing our front yard.

Stock market investors sometimes refer to three crows as a pattern of successive declining stock prices over three days often identified by overlapping candlestick patterns. Three crows are often seen as a warning of a period of powerful selling pressure on the stock market.

This does not mean I rushed out and sold all my shares. It does mean I looked at logical data like Keppler’s value analysis to see if the logic supports the intuition.

Here is an excerpt from our last multi currency portfolios update that shows Keppler’s mathematical logic.

Emerging Markets equities recorded their highest ever quarterly return. In the second quarter 2009, the MSCI Emerging Markets Total Return Index gained 34.7 % in US dollars and 27.5 % in euros.

This brings the year-to-date total return of the global Emerging Markets benchmark to 36 % in US dollars and 34.8 % in euros.

All markets covered here were up last quarter. Hungary (+69.7 %), India (+59.8 %) and Turkey (+56.6 %) had the most impressive returns.

Peru (+11.2 %), Israel (+15.8 %) and Morocco (+19.6 %) came in at the bottom of the performance range with what would be very desirable double-digit returns under normal circumstances.

In the second quarter 2009, the Emerging Markets Top Value Model Portfolio, which invests according to the Top Value Strategy and assumes index returns for each national market included in the strategy, gained 45.5 % in US dollars and 37.7 % in euros, outperforming the benchmark by 10.8 percentage points in US dollars and by 10.2  percentage points in euros.

There were two changes in our performance ratings last quarter: Korea was downgraded to “Sell” from “Neutral” and Brazil was upgraded to “Buy” from “Sell”.

The Top Value Model Portfolio now contains the eight “buy” rated markets: Brazil, Egypt, Hungary, Poland, Russia, Taiwan, Thailand and Turkey at equal weights.

It is unusual for a market to rise all the way from sell to buy as Brazil did this quarter. This is in keeping with our thoughts on Brazil Distortion Thoughts published in  April and June.

You can see the password protected pages and full emerging markets update and a warning about these values as a Multi Currency Portfolio subscriber.

Whether you plan to have international investments, an international business or non at all, it will become increasingly  important to think outside the box as change accelerates and new social and economic paradigms are required.  Whether you use backaches, gut feel, hunches, totems or meditation and prayer… new ways to focus your logic an help you have everlasting wealth.

Gary

Combining good international investing with the greatest asset of all, the ability to earn wherever you live, brings everlasting wealth.

This is why we offer our course Tangled Web… How to Have an Internet Business.

A clear mind and healthy body are also a vital assets… plus a second language is a powerful diversification tool.

This is why I am willing to pay you $300 to attend either our Ecuador Super Thinking plus Spanish seminar in September or our North Carolina International Business & Investing seminar in October.  Sign up for either seminar and I will email you our Tangled Web… How to Have an Internet Business Course (offered at $299) free plus I’ll knock an extra dollar off your seminar fee…. to round up the $300 savings.

See details of the two seminar below.

international-investments-seminar

Thomas Fischer teaching at our IBEZ seminar.

Join Merri, Thomas Fischer of JGAM, our webmaster David Cross and me in North Carolina this October and enroll in our emailed course on how to have a web business free.  Save $300.

Learn more about global investing, how to have an international business and diversification in Ecuador at the seminar.

Oct. 9-11 IBEZ North Carolina

Here is an email for a recent seminar delegate: Hello Gary and Merri,  I have wanted to write to tell you how much we enjoyed your IBEZ seminar, and to thank you both for inviting us all into your lovely home for lunch last Sunday.  Merri, again, thank you for taking the time to prepare foods especially for me; they were delicious, and I appreciate your effort!  Thank you for a thoroughly enjoyable, very well done, stimulating seminar.  I came away not only with all the notes provided, but also with many ideas which I plan to begin working on now that we are back home.  Wishing you all the best,

Or join us in Ecuador and learn more about living and retiring in Ecuador.

international-investing

We take delegates on our Ecuador seminars to Otavalo markets.  Many buy enough goods to resell in North America to pay for their entire trip.  Ecuador tiles are one great product attract many international businesses.

Here are comments from one seminar delegate about the followup from our course: Thanks so much.  I have been following the advice in your Multi Currency Course/International Investing monthly and have added selected suggested funds from your lists which are available in my Fidelity IRA.  Even though my transactions are in SMALL amounts for stock and ETFs I am almost back up to the total invested amount prior to the stock market dive of last year.   Your emails have given incentive to keep diversified investments when I know other people are selling out.

Sept. 17-21 Ecuador Super Thinking + Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 21-24 Ecuador Import Export Tour

Nov. 6-8 IBEZ Ecuador Seminar
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador seminar or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

See the entire explanation of herons at speakerfortheanimals

International Investing Trick


Here is a global diversification trick that may do well in the likely global economic scenario ahead. Buy good value shares internationally as markets dive during the summer dip.

In a moment we’ll look at some Ecuador health ideas… first the investing trick.

Global equity markets have been in a bear market rally for six months but are now hitting the summer blues due to seasonality.

Share prices will probably drop now. Chances are there will be a strong global equity slump at least through October 2009.

This will create extra value in equity markets and provide good opportunity to pick up high value long term.

The bear market is likely to carry on until 2012-13, but good value shares acquired during dips are more likely to spike early and have extra potential after the bear ends.

Now through October 2009 could be a good time to invest in high value shares for long term appreciation.

But which shares… in which markets?

One way to approach this is to look for extra value created by inefficiencies in markets…to find markets where the values are best.

Statistically this is the best way to be absolutely sure of the best long term returns.

There are numerous investment managers who use very strict valuation criteria (usually based on dividend yields, cash flow, price earnings) to spot the best value markets.  They then try to apply similar criteria to select good value shares in the good value market.

The next goal is to decide how much should be weighted in major market and how much in emerging markets.

Here is a comparison of the Morgan Stanley Major Market versus Emerging Market indices.

The MSCI World Index is a market capitalization weighted index that measures the equity market performance of developed markets.  It includes 23 developed market country indices : Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.

The MSCI Emerging Market Index includes Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

MSCI Indices performances.  Total per annum return over:

Major                            Emerging
15 years    4.10%                   5.41%
10 years  -3.85%                   9.11%
5 years    -2.77%                  11.16%
3 years   -10.81%              -00.17%
1 year      -20.81%             -27.53%
3 mos.      14.30%               27.53%

Regardless of the time frame observed,  the emerging equities almost always seriously outperformed major markets… but as a class they also dropped further in the 2008 downturn.

Here is a year-on-year comparison for the past five years.

Major                   Emerging
2003  10.74%           29.63%
2004    6.46%           16.51%
2005   26.17%           54.41%

2006     7.40%          18.23%

2007     -1.66%         25.71%
2008   -50.30%      -37.64%
2009      5.39%         34.79%  3 months

This history suggests that emerging markets deserve a substantial ranking.

However before becoming too aggressive in over weighting emerging markets, we have to keep in mind two thoughts.

First economic thought. The last 15 years has been a catch-up era when the investing world caught on to the idea that emerging markets offered great opportunity.

Second economic thought. A great deal of emerging growth came from debt financed exports to the developed world. This leaves emerging economies holding huge amounts of debt for customers who may not be able to repay the debt nor continue to buy the same volume of goods as before.

The easiest way for investors to invest in good value during dips is via a value mutual fund.

You can select a value major market fund, a value emerging market fund or a value diversified fund.

The benefit of a value diversified fund is that the professional manager decides how much to weight in emerging and major markets.

For example I just sent a lesson to our multi currency subscribers that showed a US traded international diversified value fund that has risen 36.08% in the past quarter ending June 30, 2009.  This fund is 86% in major markets and 14% in emerging markets.

Learn how to read about this fund as a multi currency subscriber.

The most valuable asset we can have in tough economic times is good health. This is why we studied Ecuador health ideas at our June tour.

Cotacachi is considered sacred by the shamans… a place of wonderful mountains that ring the valley.  This is Mt. Cotacachi to the west.

ecuador-shaman-recap

Mt. Imbabura to the east.

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The valley is surrounded by mountains like these twin peaks…

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creating wonderful, mystic  sunrises.

ecuador-shaman-recap

The first afternoon of the tour we visited La Mirage Spa and the Shamana Estella.

ecuador-shaman-recap

She began a theme that the many shamans we visited confirmed.   She said that the three keys to better health, increased longevity, more energy and fulfillment are good nutrition, proper exercise and good sleep.

The purpose of the Ecuador shamanic tour is to learn ways to unlock this healthy  combination in a natural low cost way!

The second day we joined Clemencia, the Shamana of Zuleta and drove 15 minutes from our hotel Meson de las Flores to Otavalo market where we visited the local food market…

ecuador-shaman-recap

filled with fruits…

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vegetables…

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flowers and …

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herbs.

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Here is the shamana speaking to the group with Merri and Mauricio translating.

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We learned the importance of the herbs to make good teas that hydrate the body are cedron, chamomile and lemon verbena.

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We learned how other herbs relax such as chamomile and valerian root. Plus we were told to boil lettuce in milk as a prebedtime drink for better sleep.

ecuador-shaman-recap

On the other hand, tea from cinnamon, paprika, cloves and ginger help reduce sluggishness in digestion and to speed the system when we need to be fired up.

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You can read this entire report as an Ecuador Living subscriber.

Gary

We hope you’ll join us and enjoy Ecuador’s or North Carolina’s beauty soon.

ecuador-sun

Sunrise from Meson de las Flores.

July 24-26 IBEZ North Carolina

Oct. 9-11 IBEZ North Carolina

Or join us in Ecuador and learn more about living and retiring in Ecuador.

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 21-24 Ecuador Import Export Tour

Nov. 6-8 IBEZ Ecuador
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

Brazil Multi Currency Opportunity


See how my multi currency course subscribers have been able to gain up to 50% in Brazil during 2009.

Many readers at this site know me best as Mr. Ecuador.  However recently some of our subscribers have enjoyed the biggest profits as multi currency investors in Brazil.

Though Merri and I have been investing, living and working in Ecuador for over a dozen years now, our greatest expertise is as multi currency investors as we are in our 41st year.

See below how multi currency investing brought us to Ecuador and how your interest in Ecuador can now bring you a free subscription to our multi currency course as I present a survivors guide to currency and market turmoil.

Those interested in Ecuador do not have to change currencies when they travel here because Ecuador’s currency is the US dollar.

This means they need to learn how to make your money go up as the US dollar and stock markets go up and down…

The US dollar has fallen… badly against major currencies like the yen, euro and Swiss franc for 37 years.  You can see this long term, steady decline of the US dollar in this chart from Grandfather.com.

multi-currency-debt

One reason for this fall is the growing debt in the USA.

Now this debt is even worse. Here is a picture from USA Today that shows how the US public debt  has just grown 12%.

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Even minor currencies such as the Colombian peso, and Brazilian real have risen steadily versus the US dollar… 25%, 50% since the early 2000s and more.

Until.. in 2008, the greenback suddenly zoomed up… as stock markets collapsed around the world. Now the dollar is falling again.

Sideways motion like this destroys most investors.

Yet there is a way to earn even in these worst times…by learning how to spot value…that turns turmoil and currency shifts into profit.

This is not just a problem for Americans either. The dollar’s downfall affects currencies all over the world and creates global economic turmoil. For the modern economy to operate in its current fashion some reserve currency is required.

Yet what currency would you choose…the Chinese yuan…the euro…gold, oil? Would you trust your life savings to speculate on that?

Of three things we can be sure.

First, The US dollar will fall more…much more.

Second, there will be confusion. Many…in fact most uninformed investors will lose…a lot.

Third there will be inflation…worldwide due to the excessive spending in the current global financial bailout.

Smart investors who know how to spot value in multi currency portfolios at some of the world’s safest banks have already earned 57%…120% …263% so even with the doom and gloom, they are still ahead.

More important these same investors have learned how to survive through turmoil.

My name is Gary Scott. I have been writing and publishing information about the falling greenback and how to earn from it though international investing for over forty years (since May 1968 to be exact).

Fortunately I stumbled across multi currency investing at an early stage and wrote a book about this clear back in the 1970s when the US dollar was first beginning to erode.

Since that time my books and reports have helped hundreds of thousands of investors find hot areas of value in every decade.

In the 1970s we helped our readers  find investments in gold & silver as well as investments  in the currencies of Japan, Germany, Switzerland, England, Australia and Hong Kong.

In the 1980s, the Tigers, Taiwan, Singapore Malaysia and South Korea, & Turkey were the places where our readers gained value.

The 1990s saw South America (which led me to Ecuador) as the place to invest.

The early 2000s offered great value in China, India and Eastern Europe.

We have helped readers find good value real estate throughout this time, first in Hong Kong, then London, Switzerland,  Isle of Man, Dominican Republic and now Ecuador as well as in Small Town USA.

We have also helped readers bet against the US dollar throughout these decades which as the chart above shows has worked well.

Finally in the early 200os we began helping readers find good value green investments.

I would like to offer you a valuable real time emailed course that teaches how to invest in multi currency portfolios plus how to sometimes use leverage in these portfolios to create extra profits.

Sleepy Safe Portfolios Can Earn Over 100% Per Year

Multi currency investing does not require any fast trading techniques.  Multi currency portfolios are normally slow and sleepy investments…not currency contracts or futures speculations.  Most multi currency positions are aimed with a five year horizon…pretty sleepy compared to people who trade currencies (an entirely different and far riskier technique).  For most of us, slow and sleepy means SAFE!

Yet multi currency portfolios can be really profitable as well.

How sleepy and how safe?

Let’s look first at sleepy.

In 2006 we created an Asian multi currency portfolio consisting of just five award winning mutual funds.

We did not touch the entire portfolio for an entire year. Then after one year we made just five changes…dropping two mutual funds and adding three other mutual funds. Then we did not make another single change. That’s pretty sleepy, choosing a handful of mutual funds and making only five changes in two years.

How safe?

The portfolio was chosen with the help of one of the world’s safest banks and the mutual funds were held at that bank at all times.

Okay. Here is the big question. How profitable?

In the first year (2006) this portfolio rose 114.16%. Then we made the five changes mentioned (two funds dropped and three added). In 2007 this portfolio rose 122.62%. 2008 was a disaster year which we will look at in a moment.  But when your portfolio is over 200% in two years, it takes a lot of disaster to lose.

Suppose we get more specific.

That safe bank is a Danish bank. That’s good because in recent years Denmark has been rated by Standard & Poor’s as one of the safest country in the world in which to bank

The bank is Jyske Bank…well established with a history of over 100 years. Jyske is Denmark ’s second largest bank, with 450,000 clients in Denmark and over 30,000 abroad.

Jyske Bank has over 23 billion euros in assets and also happens to be one of the leading currency traders in the world. The Danes have always been big currency traders because as a small naval country surrounded by England, Sweden, Finland, Russia, Germany, Norway and other countries…they have always had to deal in many currencies.

This historically gained expertise means that unlike most banks (that trade only eight hours a day) Jyske maintains a 24 hour global currency and commodity dealer service. Many other large banks use Jyske to handle their off hour currency positions. This means that Jyske is huge when it comes to multi currency activity. In fact their turnover reaches $50 billion dollars a day.

Let’s address this issue of safety in more detail. Normally this is a pretty moot point. Right now everyone is concerned. Is a bank safe or not? I like Jyske from a bank safety point of view because there are three bank safety points, from the top down.

Bank Safety Point #1: A recent Yahoo Canada article shows a survey by the World Economic Forum listed five safest countries in which to bank.

Canada
Sweden
Luxembourg
Australia
Denmark

So Denmark is a safe place to bank. Now let’s look at Jyske Bank’s safety rating.

Bank Safety Point #2: Jyske Bank is Denmark’s second largest bank.
On October 10 2008, Moody’s affirmed Jyske Bank’s long-term Aa2 rating stable rating. This decision came despite the deteriorated economic prospects in Denmark, particularly in respect of the property market.

Bank Safety Point #3: Also on Friday 10 October 2008, the Danish Parliament passed a bill that secured all deposits and unsecured claims against losses in Danish financial institutions.
The rating of the Kingdom of Denmark is Aaa/AAA with Moody’s and Standard & Poor’s respectively.

That’s safe!

I happen to know Jyske Bank because I began using them (as my bank) over 20 years ago. They are one of the few banks that offers a special multi currency portfolio service for investors from almost anywhere in the world.

I was one of the first writers and publishers to begin writing about multi currency investing. Jyske bank was one of the first banks to offer a multi currency portfolio service…and they were my bank.

Not surprising we got together and have created a strategic alliance that can help you learn how to create multi currency portfolios that suit you.

My multi currency course helps readers learn how to find good value and develop multi currency portfolios that suit their specific circumstances.

Before I explain how you can use this course, let’s look at both the up and down side of these high performing portfolios?

The course provides two levels of education. Part one gives readers an extensive beginner’s guide to developing multi currency portfolios.

Part two is unusual and neat.  Part two educates in real time. We create multi currency portfolios and track them real time.  The education comes from dissecting and discussing the portfolio results.  This is a totally novel way to learn…real time from real portfolios created by some of the best investment managers in the world as these portfolios rise or fall in the market place…in the here and now.

Jyske Bank assists by providing all the portfolio details.   Our symbiotic relationship allows me to combine my experience with this bank’s incredible knowledge, real time capability and expertise so course subscribers can learn in a most practical way from some of the greatest multi currency experts in the world.

Here is our educational performance over the past few years.

We created five portfolios for educational purposes on November 1, 2005. One of the five multi currency portfolios was the Asian Emerging Multi Currency Portfolio. The portfolio started with a $100,000 investment and a $200,000 loan in Japanese yen (more on the loans in a moment).

This gave us $300,000 to invest in this portfolio.

Amount

Currency

Investment

75,000

Rupee

Jyske Invest Indian Equity Mutual Fund

75,000

Yuan

Jyske Invest Chinese Equity Mutual Fund

75,000

Yen

Jyske Invest Japanese Equity Mutual Fund

75,000

Multiple

Jyske Invest Emerging Market Bond Fund

Investments Total Value 300,000.00

Invested $100,000

Loan $200,000 100.00% JPY at 1.63%

Loan cost for one year $3,260.

This portfolio diversified into bonds and equities throughout Asia ..very multi currency.

Chinese yuan, Indian rupee, Japanese yen and more.

Twelve months later the portfolio was worth $417,420. Paying off the loan cost $203,260 leaving $214,160 or $114,160 (114.16% profit) on the $100,000 originally invested.

On November 1, 2006 we made the five changes mentioned above. We dropped the Japanese equities and emerging market bond mutual funds and added an Eastern European, Far Eastern and Turkey equity mutual funds. This is how the rearranged portfolio stood.

Amount

Currency

Investment

75,000

Rupee

Jyske Invest Indian Equity Mutual Fund

75,000

Yuan

Jyske Invest Chinese Equity Mutual Fund

75,000

EUR

Jyske Invest Eastern European Equities

50,000

Asian

Jyske Invest Far Eastern Equities

25,000

Lira

Jyske Invest Turkish Equities

Investments Total Value 300,000.00

Invested $100,000

Loan $200,000 100.00% Czech Koruna at 3.875%

Loan cost for one year $7,750.

As promised this portfolio only had five changes. We swapped the Japanese equity fund for a Eastern European equity fund and dropped the bond fund replacing it with a Far Eastern and Turkey equity fund.

May I, at this point, interject a note about Jyske Invest fund managers. They are a Danish firm and are the investment management affiliate of Jyske Bank. This rock solid organization uses a good value system have been rated #1 by Morningstar. They use this value system to select shares in their mutual funds and we place these funds in our multi currency portfolios because they are strictly regulated by the Danish government and have such an excellent record…because they focus on finding value, not market timing.

So how did this new updated portfolio do? From November 1, 2006 to October 31, 2007 the fund rose in value from $300,000 to $430,370. The loan payoff of $207,750 leaves a profit of $222,620 or a rise of 122.62%.

There you have it, a safe sleepy portfolio created at and held in one of the world’s safest banks. With only three trades in two years the performance has been up 114.16% in year one and up 122.62% in year two.

I am sure that when looking at performance like that you are thinking “how did the other portfolios do?” Good question and your suspicions are correct…some of the other portfolios did not rise this much.

Yet believe it or not some portfolios did even better.

For example the 2007 Green Portfolio consisted of six shares and rose 266.30%!

Here is the exact performance of all five portfolios for the last two years.

2006 Portfolio

US Dollar Long

9.04%

US Dollar Short

10.43%

US Dollar Hedge

11.46%

Emerging Market

42.93%

Asia Emerging Market

114.16%

2007 Portfolios

Dollar Neutral

38.67%

Dollar Short

48.19%

Swiss Samba

53.32%

Asia Emerging Market

122.62%

Green

266.30%

You can imagine with performance like this attracted quite a bit of attention…and it did.  However these high returns are not the important benefit you gain with our multi currency course.

Our course does not recommend nor manage portfolios.  We did not suggest that any single reader invest in any of these portfolios. The portfolios are educational and designed to help readers work with their own investment manager to create their own multi currency portfolio that suits their own special, individual needs.

Our multi currency investment course helps readers learn how to manage their manager… nothing more.

Yet this is incredibly valuable because Jyske Bank can provide a stable and safe institution for those who wish to employ a multi currency strategy.

The course helps guide readers so they can direct any investment adviser or investment manager who understands how to invest in more than one currency.

The course also helps you manage risk. The incredible portfolio performance above was achieved because the portfolios were leveraged using a tactic we call a multi currency sandwich. Investors borrow low and invest in yielding or growth portfolios. The portfolios used loans in Japanese yen and Swiss francs to magnify profits in good times.

The course teaches how these loans can magnify losses in bad times as well.

For example look at the performance of the leveraged portfolios we created to study from November 2007 through September 2008.

2008 Portfolios

Infrastructure Portfolio

-112%

Blue Chip Portfolio

-79%

Danish Health Portfolio

-92%

Asia Emerging Market

-73%

Green

-56%

Leverage in 2008 caused the portfolios to lose badly…in one instance the total portfolio was lost!

The multi currency course is useful because it helps investors not to expect rising markets all the time.

The power of studying markets real time, as they unfold, wards off false expectations.

The course helps subscribers learn how to look ahead and act rather that react (after the fact when it is too late).

The sad fact is…we all have to become multi currency investors.  Trusting your fate to any one currency now can destroy your purchasing power.    Every investor needs to know what to do!

The course helps spot when to leverage good times and when to retract for the bad.  he idea is to cash in when the going is good and then withdraw.

For example in early August 2007…well before the market crash….our study of the market began to show increased risk.  Our first warning lesson said:  “We have enjoyed two years of enormous growth.  Periods of high growth are normally followed by periods of low growth.”

August 17, 2007 a lesson said: “The numbers are close enough that we could be entering the fourth sub cycle down (similar to 1976 to 1978). If so expect a sustained drop in markets for two to three years.”

On September 21, 2007, a lesson said: “equity markets dropped again violently last month. Now these markets have recovered again. Yet this may be a last gasp party.”

An October 14, 2007 lesson stated:  “We never know for sure when an upwards cycle will stall. Fundamentals look good for a bright 2008 in emerging and equity markets, but this can change quickly so to give our readers a better perspective, this year we are reducing leverage and adding a sixth portfolio with no leverage to study”.

The October 15, 2007 lesson reviewed how leveraged investments rise and fell faster than investments without leverage.

The lesson on Oct 26, 2007  saved many investors as it was entitled Leveraged Investments Gone.  Just before markets started to head south this lesson warned: “I have had only about 10% of my portfolio leveraged. Compare this to 200% for the Green Portfolio (which is up 265% this year). Now I have none.

So a lot of my portfolio investments are basically in a multi currency portfolio of bonds…mostly in pounds, Swedish and Danish kroner. The equities I hold are mainly in Europe and I do not leverage equities…especially after markets have risen so much. Periods of high returns are normally followed by periods of low returns. These facts, plus my belief that numerous economic woes are rising and my recollection of Oct 1987 leave me wanting to reduce risk in my equity portfolio. So now I have eliminated all my leverage.”

The next lesson warned again: “Okay it’s time to turn the burner down.”

A November 8, 2007 Black Friday lesson reviewed  all the warnings above again and more.

The course also helps readers find ways to spot unusual distortions that profit even in bad times.

For example  lessons  on April 18 and April 27 2009 looked at the benefit of investing in Brazilian currency bonds.

This lesson led to a quick profit.

Here is an excerpt from our June 12, 2009 lesson:

Based on these ideas and those presented in the April 18 and April 27 lessons we looked at why Brazilian bonds made good sense in the LONG TERM.

Sometimes we get lucky though in the short term… as we have now.

Brazilian bonds have made a sudden jump up!   Those who have invested in them have made as much as 50% (in US dollar terms) this year.

Yet the distortion we’ll review below shows how there is even more dollar denominated profit potential ahead.

Last week the Brazilian central bank lowered key interest rates to 9.25%.  This will likely send the price of  Brazilian real denominated bonds up.

The central bank has stated that there could be more rate cuts, but they will be smaller.

This is positive news plus Brazilian inflation has declined to 5.2% from 5.53% in April 2009.

When you take into account the high interest of the real, the rise in value of bonds and the rise of the real you can see the potential.

Brazilian real bonds have risen nearly 30% since the beginning of the year…  in terms of Euro!

This is where there is another huge distortion.  The real has not risen anywhere near this much versus the dollar.

The charts from finance.yahoo.com below show the distortion.

In the last three months the US dollar has dropped from $1 = 2.30 BRL to $1 = $1.97 (- 14.3%) versus the Brazilian real as this chart shows.

brazil-distortion

In the last three months the euro has dropped from 1 euro = 3.05BRL to 1 euro = 2.60 BRL (-13.5%).   This correlation of the euro and dollar would seem normal except…

brazil-distortion

as the chart below shows, the euro has risen from $1 euro = $1.28 to 1 euro =$1.40 a 9.27% rise versus the US dollar.

brazil-distortion

In addition the Brazilian central bank has had to intervene several times in recent months to avoid the Brazilian real being too strong against the euro.

Traditionally the real has had a strong correlation with the dollar but the recent weakening of the buck versus the dollar has not spilled over into the Brazilian real.

In other words. The real is up against the euro almost 10% more than against the dollar.  This is called a cross rate distortion and means that one of two things is likely to happen.  The dollar will rise versus the euro or  the dollar will fall versus the Brazilian real.

Given the fundamental US fiscal weaknesses that could push the dollar down, I am bullish on the real rising more versus the dollar and this makes me bullish about Brazilian real denominated bonds.

Always remember the basic rule though is to never speculate more than you can afford to lose.   A US dollar – Brazilian real sandwich is worth discussing with your portfolio manager or adviser now but could creates losses as well as profits.

I have not leveraged my Brazilian bond investment. Based on this data I instructed JGAM to increase me Brazilian bond holdings.

If you are using Jyske Bank, and are a non US citizen or resident, or a US citizen living abroad, you can simply have the bank purchase Brazilian bonds and lend you the funds (within the bank’s loan to asset restrictions).   Non US citizens contact Rene Mathys for more details at mathys@jbpb.dk

US citizens should contact Thomas Fischer at fischer@jgam.com

If you are a US citizen resident in the US and have an advisory account with JGAM, they may not be able to buy Brazilian bonds for you.  They could  buy the US traded ETF “The WisdomTree Dreyfus Brazilian Real Fund.” (BZF)

These three lessons (April and June 2009) helped many readers cash in on an unusual value!

I would like to invite you to enroll in our multi currency investment course and to also receive a nine lesson report that covers basics and fundamentals of  multi currency investing.

This nine lesson report has been read by tens of thousands of investors over the years.   This report sells on its own as a survivor’s hand guide to currency turmoil for $79.  I’ll email it to you free when you enroll in our online course.

The course is emailed to you regularly and studies stock, bond and currency markets worldwide, real time, as they unfold.

I believe, from the response of tens of thousands of readers over the last 20 years, that you will gain enormously from the course.

Our course helps you learn  why and where to invest and learn why and how currencies and interest rates rise and or fall.

The initial nine lesson report I’ll email you free also shows how to calculate and manage leveraged risk and how to decide if and when to leverage or not.

Is this course for you?

Everyone needs to know how to have multi currency diversification. But in case this course does not help you, we provide a 30 day “completely satisfied or your money back” guarantee that we have offered our hundreds of thousands of readers for more than 20 years.

Our Multi Currency Educational Service is a mere $175 for a very long and educational year! Won’t you share this exciting world of wealth accumulation with us and our readers around the world? Multi Currency Educational Service

Gary Scott

Multi Currency Portfolios Course. Subscribe

Or enjoy this multi currency course for a year free!  Here is how you can save $175.

We enhance our emailed courses with regular international investing and business seminars that I conduct in coordination with Jyske Bank and Jyske Global Asset Management.

Here I am at our last seminar in Naples Florida (may 2009).

multi-currency-debt

The speakers at the Naples seminar discussed prospects for the economic future.  Left to right: Samuel Rachlin,  Rich Checkan, Steve Blumenthal, Joe Cox, John Mauldin, Gary Scott, Lars Stouge. Thomas Fischer Moderating.

The 115 delegates reported that they really gained from listening to what we had to say and…

brazilian-bond-distortion

talking among themselves during the coffee brakes and at meals.

brazilian-bond-distortion

One benefit of these seminars is talking to an overseas banker.  Here I am at the Naples  seminar  with my Jyske account executive Anders Nielsen.

brazilian-bond-distortion

Thomas Fischer of Jyske Global Asset Management will join us for the July North Carolina seminar.

I invite you to attend this July course. If you enroll between now and July 1st, I’ll also enroll you in  our emailed multi currency course free. You save $175.

Enroll in our July 24-26 International Investing and Business Made EZ course here

Here is Thomas speaking to our delegates at a previous course.

brazilian-bond-distortion

Enroll in our emailed Multi Currency Portfolios Course for $175  here.  Subscribe

Save $175!  Receive the emailed course free when you Enroll in our July 24-26 International Investing and Business Made EZ course here

Here is what a few others from around the world have said about our services and reports on international investing.

“ Gary , I am a long time subscriber in various media, and while cleaning out my files today I found some old ‘Gary A. Scotts World Reports’. In particular, the April 1988 issue provided the info that made me over a million dollars. Just wanted to say a belated ‘thank you’ and please continue the excellent work. Warm regards,”

From an Unknown Reader

“Dear Gary, I would like to give thanks to you for introducing me to Jyske Bank two years ago.

“I have been a long-time client of Merrill Lynch, but am in the process of re-evaluating my relationship with the largest brokerage company in the world. My problem is that when I compare Merrill to Jyske, Jyske outshines Merrill (or other major U.S. brokerage firms) in most categories as follows:

“1) Even though Jyske is much smaller, it has a much more global perspective which is critical in an evermore global investment environment.

“2) In order to maximize their own individual revenue, the brokers at Merrill prefer to outsource the day-to-day management of their accounts to various fund managers and hence, ‘manage the managers’. In contrast, I can call my Account Manager at Jyske and he can discuss every aspect of my account in detail with me.

“3) I attribute this difference in #2 to the fact that Jyske’s employees are not compensation driven, but instead are focused on satisfying their customers. That is why Jyske’s clients stay with the Bank on average for 12 years, which is phenomenal by Wall Street standards.

“4) Jyske’s security is far more stringent than that of Merrill’s. In addition to the standard account code and password, to pass through Jyske’s security one has to enter a Key Card number and also a randomly-generated 4-digit number from said Key Card.

“5) Having an account offshore allows me to sleep better given the anxious times we live in. Since I report the existence of the account and pay all taxes due, I am fully compliant with the law. However, such an account gives me and my family a ‘financial life boat’ should events in our own country ever get out of hand.

“As Dorothy Parker once said, ‘You can lead a horse to water, but you can’t make them THINK’. Jyske is a thinking person’s bank. My only complaint is the time zone difference since I live in California . However, since I am an early riser and my Account Manager is very responsive to my emails, this problem is very small relative to the HUGE benefits.

“Again, many thanks for introducing me to Jyske Bank. Given the ‘dumbing down’ that occurs in the popular media today, your ezine and its recommendations are ever more important. Please continue your good work to enlighten your readership.

“Warm regards,”

C.M. CALIFORNIA Businessman

“I was so overwhelmed with information I received I had to spend several days reading, sorting and filing it! I have decided to move my modest investment capital overseas.”

B.W. MONTREAL CANADA Professor

“Send me your report on safe banks lending at 7% for redeposit at 13% or more.” B.V. ADDIS ABADA ETHIOPIA Economic Commission United Nations

“A number of new and significant contacts were made. It would be extremely helpful if you could supply us with WORLD REPORTS.” I.M. TORONTO , CANADA Banker

“You are as good as your word which is rare these days. I look forward to attending one of your seminars.” C.K. GENEVA , SWITZERLAND Banker

“In spite of my marketing experience, your information really got me going!” M. C. LONDON, ENGLAND Marketing Consultant

“Thanks for the three reports. They are very interesting and should find many readers here in Japan .” M.A. Tokyo , JAPAN Computer Programmer

“I would like to say how much I enjoyed the information I received.” A.B. Providenciales TURKS & CAICOS Accountant

“First let me say how much we enjoyed the investment seminar.” W.J. SAUDI ARABIA Oil Engineer

“Once again thanks for all the great information.” G.K. PERTH , AUSTRALIA Insurance Executive

“Your letter of November 8th warned me to beware of the market just a week before the 120 point crash on November 15th!” T.G. N. CAROLINA Pilot”

Won’t you join us as we learn from our Multi Currency Educational Service? Just a mere $175 for a full 12 months of valuable, wealth building education.

Enroll in our emailed Multi Currency Portfolios Course for $175  here.  Subscribe

Save $175!  Receive the emailed course free when you Enroll in our July 24-26 International Investing and Business Made EZ course here

Ecuador Swine Flu & Brazil Sandwiches


This message looks at Ecuador swine flu and the Brazilian Multi currency sandwich.

The Ecuador swine flu comes…

ecuador-swine-flu

second when we see how this weaver and Ecuador’s natural ways can help avoid swine flu.

First, the Brazil multicurrency sandwich.

Investors interested in Ecuador may also be interested in other Latin investments. Those who would like to take risk now, (I am not ready to do this), a US dollar Brazilian real multi currency sandwich makes sense for three reasons.

The first reason is the interest rate differential commonly called positive carry.

You can borrow US dollars at Jyske Bank now for 3.375%.

Brazilian bonds pay 10%.

If you invest $100,000 in Brazilian bonds, you earn $10,000 a year income.  Use those bonds as collateral to borrow $100,000.  Invest this US dollar loan in more Brazilian bonds. Your interest cost is $3,375, your income $10,000.

This increases your total income to $16,625 a year or 16.625% per annum.

Let’s look at what this means on a five year basis. Assume for a moment that you held a Brazilian bond sandwich ($100,000 invested and $100,000 borrowed) for the next five years. You earn 15% per annum to begin.

Let’s assume that the Brazilian real appreciate 10%  versus the US dollar and that the bonds appreciate 1o%. The bonds become worth $240,000. You pay off the loan of $100,000 and have $140,000 plus the $83,125 of interest you have gained over five years.  That is a total return of $123,000 of income and gain returned on $100,000 invested or 24.6%  per annum return.

There are two more reasons why this investment may now make sense.

Learn them and the reason I am not increasing my position in Brazilian bonds in these volatile times (I have these bonds in my portfolio already) yet as a multi currency subscriber.  I posted a message with full details plus including a way to cash in on this distortion through any US stock broker.

Learn how to be a multi currency subscriber here.

Ecuador Swine Flu

ecuador-swine-flu

One great thing about Ecuador is the balance of the shamanic wisdom.   I do not think the shamans of Ecuador are very concerned about swine flu.  The ancient knowledge flows with nature’s way and uses nature in every aspect of life balancing out problems of this sort.

Nature and balance are in every part of the ancient ways.  Here for example the weaver pictured earlier shows how yarn is naturally dyed.  A plant creates green.

ecuador-swine-flu

A herb is used for red orange and…

ecuador-swine-flu

a beetle that lives on cactus creates a natural purple dye, cochineal-in history very rare, very special.

ecuador-swine-flu

In places like Cotacachi balanced shamanic knowledge is incorporated in daily life. Here a shaman leads a ceremony in the village plaza.

ecuador-swine-flu

The ceremonies attract…

ecuador-swine-flu

thousands of participants from the area because this wisdom is still in use.

ecuador-swine-flu

Even Ma attends!

ecuador-swine-flu

This appears to not be the case at Ecuador’s national level so this Andean nation’s reaction to Swine Flu was abrupt.

When swine flu first appeared, Ecuador declared a national emergency on swine flu… even though there was not have a single case of swine flu reported there.

In late April Ecuador barred foreigners who have been in Mexico from arriving in Ecuador on commercial flights as a precaution against swine flu.  Ecuador also suspended charter flights to and from Mexico to prevent the spread of the virus.   Visitors arriving in Ecuador who have been in Mexico are currently not allowed into Ecuador, although Ecuadorians are allowed to return home, but are closely monitored for flu symptoms.

Now new Ecuador swine flu events have taken place. If you are traveling to Ecuador from the US, I expect for now you’ll be wearing a mask on your flight.

Learn why when you read our entire Ecuador swine flu update as an Ecuador Living subscriber. See details here.

Here is one tip that can help avoid the swine flu anywhere that I believe is more along the lines of Ecuadorian shamanic wisdom.

An Ecuador Living subscriber reader sent me this note.

GARY, HERE’S A TIP THAT CAN SAVE YOU FROM VIRALS OF ALL SORTS:  TAKE A CLEAN COTTON HANKERCHIEF AND PUT ABOUT 6 DROPS OF ESSENTIAL OIL OF HYSSOPS, CLOVE AND ROSEMARY.  ESSENTIAL OILS ARE VERY POTENT ANTI BIOTIC AND ANTI VIRAL/FUNGAL.   EUROPEAN ESSENTIAL OIL RESEARCH IS QUITE CONCLUSIVE ABOUT THIS. MUCH LOVE AND GOOD HEALTH.

This matched up with what Merri and I have learned from Ecuadorian shamans, but I asked our friend Candace Newman, the expert on essential oils, to confirm this.  Here is her reply.

Gary, more and more the health community is definitely acknowledging the antibacterial and antiviral properties of essential oils…. because they are SOOOO needed.

The three below are certainly good ones…there are many.

Some other top ones include: Eucalytpus, Peppermint, Ravintsara, Tea Tree,
Oregano and Thyme.

Keeping a little bottle of the pure essential oil in your pocket as an inhaler is a good idea, and using any combination of these in a mist for misting your face, hands, and air around you is another good idea.

Putting some of these in a room diffuser for the bedroom or office room helps too. It is best to dilute them in a good base oil for rubbing into large areas of the skin like a chest or neck rub. Some of these oils are strong skin irritants. Take care, Candace.

You can the following essential oils  from Candace Newman below.

Tea Tree 10 ml

Peppermint 10 ml

Eucalyptus 10 ml

Lavender 10 ml

Lemon 10 ml

Whether due to shamanic wisdom or Ecuador’s strict restrictions Ecuador swine flu does not look like it will go far.

Gary

Join us at an upcoming Ecuador or North Carolina conference or tour.

June 12-14 Shamanic Mingo Tour

June 16-17 Imbabura Real Estate Tour

June 18-21 Ecuador Coastal Real Estate Tour

July 4-8  Ecuador Export Tour

July 8-9 Imbabura Real Estate Tour

July 10-13 Ecuador Coastal Real Estate Tour

July 24-26 IBEZ North Carolina

Sept. 17-21 Ecuador Spanish Course

Sept. 23-24 Imbabura Real Estate Tour

Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 9-11 IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

Nov. 6-8 IBEZ Ecuador

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.