Tag Archive | "Dominican Republic"

Enjoying the Spirit of the Andes


Whoa!  There has been so much turbulence these last few days! 

I am so happy I learned the spirit of the Andes long ago.  There is so much going on I could feel overwhelmed.  The Andean mindset goes a long way in helping me keep my composure.   That spirit comes from the indigenous circular thought process that Merri and I learned in Ecuador.  The year we lived at our hacienda with an Ecuador Taita Yatchak  and his apprentices taught us how to think in this Andean way.  The apprentices never expected (except for festival days) the future to vary from the here and now.  They lived to enjoy the here and now instead of sacrificing every moment for the future.  Thus when we view events, (such as a tumbling economy) as bad or something that made us feel good (due to  a booming economy), they did not react.  Why?  They enjoyed events as they were and as they came.

Ecuador Images

Cuenca, Ecuador Learn about Ecuador from Ecuadorians

This created an inbred sangfroid, a wellspring of calm and contentment during the most turbulent times.  Though the apprentices had no material wealth and most earned about $30 a month, their joy and happiness  was infectious.  Laughter always just waiting to bubble over at any moment.  The turbulence we are seeing now would not bother them much at all.

What turbulence?

Crashing oil prices will hurt Ecuador a lot, especially the poor.  We’ll see why in a moment.  First, let me share some of the other stuff that is bouncing around that makes life interesting.

Well, Mount Dora was just featured as one of 11 most stunning towns you must visit.

Mount Dora

“For southern charm in a small town, take a side trip to Mount Dora”.  Buzzfeed says in “11 stunning Florida towns you need to visit”.

More people are pouring in.

Then how about Cuba?  In 2007 I wrote in Beyond Ecuador & Cuba, that Cuba, after Mexico was the potential #2 competition for Ecuador.  I expected Cuba to open up around the time the big wave of baby boomers began to retire.  Now that event is near!

We have been keeping our eyes open and in 2011 I started sending Canadian Researchers (and our Super Thinking Spanish teacher) to Cuba to investigate for us.

We decided to avoid Havana just as we avoided  Santo Domingo when we launched our Dominican Republic Tours in the 1990s and Quito-Guayaquil when we focused on Ecuador in the late 1990s and 2000s.  Our research is centered around the Frank Pais International Airport, which is a small-size airport located 8 miles southwest of the city of Holguin, the capital city of the province of Holguin.

We featured photos of the countryside in this area  in 2011.

What could create more turbulence than the crashing price of oil?  The plunge in oil prices is one of the biggest weapons in the return of the cold war with Russia.  Has it gone too far?  North Dakota’s booming economy has helped the US economic recovery.  Have falling prices gone too far?  Bringing Cuba back into the Western fold probably did not make the Russians too happy either.  Yet Measure HR 5859 goes much further.  I cannot help but ask how it won unanimous initial approval in both the Senate and House last week.

This law mandates U.S. sanctions again Russian arms and oil, plus authorizes providing lethal assistance to Ukraine’s military.  Those provocative steps go beyond what the White House and European Union have been willing to do so far and yet the vote was unanimous.   When was the last time that the Democrats and Republicans, the House and Senate and President agreed on anything?  This makes me suspicious that there is something I do not see.

Falling oil prices will create some incredible opportunity in Ecuador as well.  

I polled many of our contacts in Ecuador asking what they felt might happen.  One of our long term friends, Ecuador attorney, an astute businessman, sent this note yesterday:  “Gary, regarding the economic future, yes, I think we are going to see a crunch.  The government has been spending like there’s no tomorrow and with such drastic drop in the price of oil there’s going to be a lot less money going around.  The government will seek loans to balance things out but, ultimately, there’s going to be some crunch. We have a relatively low debt to GDP ratio but there is only so much that can be done.  I too see the same silver lining, though. We may start seeing some very interesting opportunities to buy real estate sometime in the later portion of next year and beyond. While these opportunities may not be as widespread or that big (as I believe we did not get to a bubble) they are certainly going to be there. On the other hand, for the many, many aspiring expats … the weather, the relative low cost of living, the beautiful natural and cultural landscapes… will still be here.

What turbulence and potential for good and bad.  Special Ecuador real estate bargains, extra investing and business opportunity and risk of more war.  So much to get excited about.  Let the spirit of the Andes help you remain calm in the eye of the storm.  There will always be opportunity and risk of war.  Fulfillment and peace of mind come from within.   Neither the good nor the bad can hurt you in the here and now.

Gary

mt-dora-images tags:"2012-4-20"

Join us this winter in Mount Dora.  See our winter course schedule in Mount Dora here.

How Cuba evolves, know one truly knows.  Here’s a good book to get up to date on where Cuba is now and why:

“Cuba, What Everyone Needs to Know” by Julia E. Sweig.

Cuba All You need to know

Cuba All you need to know at Amazon.com

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%.

ecuador-tickets

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

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Cotacachi Crime Concerns


Numerous readers have sent Cotacachi crime concerns which we share here.

You are a salesman.  A salesman will tell you anything.  You know it is dangerous to live down there. Gayle

I often get notes like this …usually from people who have never been to Ecuador.  Galyle has one point correct for sure.  I have been a salesmen going on 41 years and always considered it a privilege to sell things I truly love and live myself…like Cotacachi Ecuador.

Really the village does not need selling. Cotacachi sells itself. All I have to do is tell the truth…so I sometimes get comments like this.

I visited Cotacachi and your hotel Meson de las Flores. It was exactly as you described it. I felt safe the entire time I was there. Thank you!  Monica

We’ll review more comments on Cotacachi crime in a moment…but one thing that is not a crime in Cotacachi or Ecuador is the great quality and cost of food. I just returned from Oregon and spent some time on the coast. Dungeness crab was $28 a pound…smoked salmon $19 a pound.  That seems like a crime to me!

The wonderful lakes around Cotacachi means we have great fish.  This is Lake San Pablo.

Cotacachi-fish

Here is a high Andean lake above Cotacachi.

Cotacachi-fish

and the trout they catch there.

Cotacachi-fish

Back to crime…let’s read what some people who live in Ecuador say about crime.

Hello Gary, Here’s a New York Times article you may have seen about an Ecuadorian man who was beaten and stabbed to death in New York. He was basically killed for sport…a hate crime.

Personally, I’ve been a crime victim a few times in Ecuador. During my six years there, I lived and traveled among the general population in a large city. I used the public transit system, the local markets, the bus stations… In this situation, you’re bound to be unlucky sooner or later.

But even in the worst of areas, I never worried for my safety. All I lost was money–or replaceable items–and I never carried any more than was necessary. I didn’t (and still don’t) worry that I’ll be killed or beaten for fun, or because I’m the wrong color or nationality.

My personal experience has been that Ecuadorians are basically non-violent people. They steal out of need. What little I lost likely went to feed a family… Best regards,  Lee

I agree with Lee. When you talk to people who have lived in Cotacachi or most parts of Ecuador…they’ll agree…petty theft is a problem from which you must protect…but hate crimes basically do not exist and violent crimes are rare.  Another reader who was a visitor to Ecuador wrote this note.

Hey Gary, first time in Ecuador, flew down from Quito to Guayaquil, heard how dangerous it was everywhere, been walking the streets day and night.  I wear a $15,000 gold watch. Today, I rented car, drove to Montanita.  Tomorrow, I am driving north, along the beach coast, then back to Guayaquil for a few days then over to Peru.   I´m from Mobile.   We have several shootings, stabbings, hit and runs a week, along with other crime. The bottom line is that most crime comes from just being at the wrong place at the wrong time. One of my next trips is Caracas, murder capital of the world…and yes, I am alone and over 60.  I will be in the Dominican Republic for Christmas and New Years, surfing with my kids. Bobby.   The only thing I suggest is it is better to burn out, than rust out.

I urge more caution than Bobby takes but could not agree more with his philosophy of enjoying life and embracing the incredible riches we have in today’s society instead of wasting away worrying about what bad could happen. Life is too short!

Back to fish. Merri and I love to accompany our chef, Santiago, to the Thursday fish market in Ibarra. I can buy about 20 pounds of crab for the same price as one pound in Oregon and it is really fresh!  One of our favorite jobs is helping the chef!

Cotacachi-fish

We also love watching the fishermen at work when we are on Ecuador’s sea.  Here is our last Coastal real estate tour watching the fishing on the Chone Estuary at Bahia.

Bahia-fishermen

There is a big modern town behind these Ecuador fishermen…

Bahia-fishermen

but they are pretty low tech!

Bahia-fishermen

Just canoes and poles…no gas surcharge here.

Bahia-fishermen

The fishermen who fish outside our hotel in San Clemente are even more low tech…no boat!

San Clemente-fishermen

We took our last group for a sea food meal in Manta.

Manta-fish-meal

Where this most expensive dish on the menu…a full lobster meal was $12.

Manta-fish-meal

My grilled fish was $6. That was no crime!

Which brings us back to Cotacachi crime. 

This reader who lives regularly in Cotacachi wrote:

Gary,  As you now I have traveled to Ecuador and the Cotacachi area many times over the last several years; nine times I think. I have always felt safe even during the evening walking about Cotacachi and have never felt threatened there or in Quito or the coastal areas. I always try to be aware of my surroundings and the level of cautions I may consider appropriate as I would anywhere in the world I am traveling, for example, in Quito I usually put my wallet in my front pocket. However, reading the accounts of crime in the area lately, and I appreciate your alert, I felt a little concerned as a North American. In the interest of thoroughness on this topic my alarm is that the message is we are being targeted. This may be obvious. As anywhere the perceived affluent are vulnerable. In this culture we stand out and In this sense we present opportunity and perhaps in the perpetrators mind fair game. I would only say that a common sense realistic awareness of taking precautions in unfamiliar areas in an unfamiliar culture is important. I think that you and Merri provide a real service with up to date information for safe travel and areas to live and lodge in Ecuador. Your tours also provide an excellent environment for safe guided travel.

Since I have had so little trouble with any sort of crime in Ecuador what I tend to recall are the simple unexpected kindnesses which I have encountered.  One time while  shopping at the Otavalo indigenous market unknowingly I dropped a small package only to turn around to see a little indigenous child running up to me tugging at my sleeve with a smile and handing it to me. Another time at the bank in Cotacachi I was  trying to cash a $100 bill – can be difficult as many know due to the fear of counterfeiting from Columbia. There at the bank after waiting in line for an hour only to be refused change due to that I did not have an account or permanent address they said; I left in exasperation. Unknown to me a young woman was observing  and having empathy for my plight had withdrawn an extra 5 twenty dollar bills from her account and rushing down the street to find me offered them to me in exchange for the 100 dollar bill. “De Nada” she said.

These are a few of the experiences of innocent kindness in Ecuador and of the Ecuadorian people that I choose to remember over my fears of crime. Thanks for keeping us aware and informed in our travels and adjustment to new and unfamiliar areas and culture.  Jim

Here is another note from a gringo who is resident in Ecuador.

Gary, I would like to add the following on crime in general in Ecuador. I have spent the past 9 years living in the Mariscal neighborhood of Quito, 6 months each year.  Many consider this a likely neighborhood to encounter crime in Ecuador since there is much tourism, thus many opportunities to rob people who actually have money or valuables on them.  I walk the streets until about 10 PM.

Ecuadorians are gentle peoples: They are not Cali, Caracas or Miami.  The indigenous peoples who inhabit the provinces north of Quito are among the most stable, economically affluent, and culturally integral of any class of people in Ecuador.  Crime is minimal as it is in most small towns in the USA.

Crime in Ecuador tends to be petty thievery, taking a backpack or purse from a cafe, stealing “things” which are left in the open unguarded.  Ecuadorians are not  a “gun culture” as exists in the United States.  It is beyond their imagination that a person would rob and kill another for a pair of tennis shoes.  It is further beyond their imagination that a young person would mass kill his classmates at school, and that the state would continue to allow unlimited access to hand guns and semi automatic weapons.The crime of Ecuador is based more on poverty, although there exists a cultural flaw in many people committing petty theft even when they do not need an item. These events are rarely associated with violence to people.

I’m a street smart kid (63) who grew up in Chicago’s south side and I know that Miami, Los Angeles, New York, Chicago, Washington DC, New Orleans, and just about every major and “medium size ” US city is far more dangerous that most any city or neighborhood of the largest cities of Ecuador.  Only 2 cities of Ecuador have any significant crime, Guayaquil and Quito, and then only selective neighborhoods.   Almost all the people I know who have been robbed (6 or 7) in Quito have been men walking home drunk late at night oblivious to using their normal street senses.

Gary, if you do a follow up, feel free to include my comments.

I agree that the Mariscal neighborhood of Quito is one of the riskier areas due to tourism…and that it is not the nature of Ecuadorians to be violent.  We love the people here…the great scenery…the wonderful food…the low prices…the colors like these ice cream vendors in Bahia serving our last coastal real estate tour.

Bahia-Ecuador-workers

Plus we love the warm weather.

This is the final point. I was in a West Jefferson barber shop today and read the local paper.  This is as small town USA as you can get. Nine people were on the front page…all arrested for dealing drugs…cocaine…heroine…meths.  Then Merri saw a real live mountain lion run across our field. Then we visited our neighbor who showed us photos of five bears roaming the neighborhood.  I feel totally safe here and would not hesitate for a moment to invite people to come up (just watch the ice on the road).

So I can live in complete safety here…even though there is crime…in this.

snow

Or go to Cotacachi and San Clemente where the crime may be about the same…more or less…but in this.

Ecuador beach

and this

cotacachi-sun

at about a fourth or fifth the price.

So here is the salesman speaking. “Visit us in Ecuador. You will be glad you did!”

Here is a comment from a delegate at our last course:

Hi Merri:  I just wanted to drop you a note and let you know how much myself and all of our “extended family” enjoyed the course that you, Gary, and all of your competent staff put on earlier this month.  I am really just getting my feet back on the ground and I think that we are finally there.

Gary was awesome as we expected and gave me as really a beginning investor many insights and new ideas to think about.  I am speaking for myself, Charles, Jose as well as Rebecca and Betty who joined us after the Galapagos Islands.  You showed me that you are an expert planner and really went  out of your way to accommodate  us especially when we had people coming in at different times.

Francisco stood out as well.  Of course, “our man” Steve the excellent tour guide and all around helpful person.  Last and not least was Ray who also handled so much on the fly and did it well.
Ray really helped with the leaving process.  Also I will keep in touch with him about the possible medical conference I may put on at La Mirage 2010 in August if it comes together…..lots of work and much to work on to make it happen.  We really enjoyed your hotel and the hospitality.  It was  memorable. Thanks so much and we hope to keep in touch and continue with Gary’s newsletters!  Merry Christmas and Happy Holidays.
Sincerely, Jim

Merri and I hope to serve you in Ecuador this sunny winter.

Gary

Jan. 16-21 Ecuador Spanish Course

Jan. 22-23 Imbabura Real Estate Tour

Jan. 24-27 Coastal Real Estate Tour

Feb. 9-11 Beyond Logic-Shamanic Mingo

Feb. 13-15 International Business & Investing Made EZ

Feb. 16-17 Imbabura Real Estate Tour

March 8-9 Imbabura Real Estate Tour

March 10-15 Ecuador Export Expedition

March 16-19 Coastal Real Estate Tour

Better still join us all year in Ecuador! See our entire schedule of 26 courses, tours, mingos and expeditions we’ll conduct in 2009.

The course fee includes meeting at Quito airport (day before the course)…transportation (by group bus) to Cotacachi and back to Quito. Course fee does not include air are. accommodations, food or individual transportation.

Multi Currency Inflation


Multi Currency Inflation

Multi currency inflation is with us. Merri and I are conducting our International Investing and Business course this week.  When we do these courses at the farm we provide al the meals. Merri is a great cook and everyone enjoys her home cooking, and she enjoys it also.

We do all the shopping for these meals and just being back from Ecuador…wow…sticker shock!

Being a multi currency investor, my portfolio is up…but it needs to be with rising prices. My heart goes out to anyone trying to preserve purchasing power with investments just in US dollars.

Quality has suffered here as well.  We feel deprived in US super markets after shopping in Ecuador’s markets where the food is fresh, the fruit and vegetables ripe…as well as costs a fourth or less of the US.

This is what we are used to in Ecuador with food prices so low it makes us want to give the people more than they ask.

Ecuador-food-market
But inflation is everywhere. This is why I am buying Ecuador real estate as fast as I can. I believe prices will rise for two reasons.

The first is because of commodity hikes.

In February, I wrote an Ecuador Beach Condos Introduction.

This introduction revealed a number of brand new beach view condos available for $79,000. The developer reported that these condos literally sold out in a week. However he also offered all the buyers a 60 day cooling off period.  Several have dropped out so a few of these $79,000 units are on the market again.

My feeling is that these $79,000 units will not last long based on the reply that the developer Kjetil Haugan sent when I asked if these units were still available at this price.

“Gary, thanks..it is ok for me to offer the apartments at $79k with the $5,000 club fee waived.  The problem I am facing now is that building material prices are going up every month..steel has gone up 65% since January and the total construction cost is about 40% more than it was in November 2007..it looks like we will be able to do the infrastructure a bit less expensive so I am okay with this price but we want to build most of the blocks as soon as possible before prices will be even bigger problem!  We have started with two blocks now and will start with the upper blocks where you bought next week.”

The second reason I believe prices will rise in Ecuador is that the Italians and Spaniards have caught on!

Our friend, Anne Williamson, is a veteran journalist, who has written for the Wall Street Journal and the New York Times. She authored a definitive and eye-opening analysis of the nation’s banking system for WorldNet and discussed this issue on national televion and radio programs, including “The O’Reilly Factor.” .  She is an authority on Russia and international finance and testified before the House Banking Committee.

Having spent months with us in Ecuador she has caught on quickly and sent this note to us.

“Hello Gary, I spotted the above in an email from idealista.com (a weekly investing review of Spanish and Italian real estate trends), and thought you might find the information useful.  All the best,  Anne

“A dwelling in Quito or Guayaquil, the same price as a garage in Madrid
Negocio, Monday 12, May 08.

“A three-bedroom dwelling measuring 800 square feet  in a luxury complex in Ecuador can be bought for €36,000, which is equivalent to what, with luck, a well-situated garage costs in Madrid.  These low prices have made Ecuador a destination to be taken into consideration by Spanish investors as the same dwelling would cost €126,000 in areas such as Mexico or the Dominican Republic the market in Ecuador is expected to offer 7% returns in the coming years.”

This will make it tough for Americans and diminished dollars to compete with the Europeans and their euro which has double in strength against the greenback in the past few years.

You can learn more about the $79,000 beach condos from Kjetil Haugan at kjetil@haugancruises.com

Inflation is everywhere but multi currency investing in real estate, commodities and shares can maintain and increase our purchasing power.  This is what I am doing and look forward to sharing my experiences with you.

Gary

See dates for our other Ecuador courses and tours:

Coastal Real Estate Tour

Here is a house on the beach we saw on our last coastal tour.

Ecuador-beach-property-for-sale

Super Thinking + Spanish Course

Imbabura Real Estate Tour

Here is a house in Quito we’ll see on our next tour.

quito-property-for-sale
Ecuador Shaman Tour

Ecuador Import Export Course


See discounts for attending more than one course.