Tag Archive | "Ecaudor"

Ambato Ecuador Real Estate for Sale


Ambato Ecuador Real Estate for Sale:

There is special opportunity in Ambato Ecuador condos. New Ecuador real estate opportunities in Ambato.

ambato-condos

Here is an Ambato, Ecuador condo for sale.

When Merri and I first moved to Ecuador we lived for over a year with an indigenous community near Ambato. We loved the beauty of this land and its location in the middle of Ecuador….and enjoyed the ride along the Avenue of the Volcanos to and from our home in a small village.

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ambato-condos

See a listing for ten Ambato condos at your password protected Ecuador Living Club site. Click here.

Learn how to attain a password here.

Ecuador Beach Rentals in Small Towns


Ecuador beach rentals. See the value of Smalltown everywhere.

ecuador-ocean-view
Smalltown Ecuador beach.

Our websites have promoted  the idea of investing in small towns for well over a decade…  Smalltown USA as well as small towns in Ecuador.

An April 7, 2011 USA Today article entitled “Most major U.S. cities show population declines” by Haya El Nasser suggests that this is good advice when it says:   The 1990s’ urban renaissance that ended decades of decline for many of the nation’s major cities lost steam the past 10 years when most of America’s largest cities either grew more slowly or lost people at a faster rate.

“Many urban scholars saw the 1990s as a breakthrough decade for cities, but it may have been their high watermark for growth,” says Robert Lang, urban studies professor at the University of Nevada-Las Vegas who analyzed the 2010 Census data. “The recession was supposed to help cities by holding people in place, but it appears for now as if it slowed urban development.”

This is why we have invested in Ashe County, North Carolina, Lake County, Florida as well as small Ecuador towns like Cotacachi and San Clemente.

Our sites have also expressed the idea that really great advancements would come when the bridge over the Chone Estuary at Bahia was complete.  This has really come true, so we have recently doubled our focus on the areas around Bahia from San Clement up to Canoa.

I believe that this area is a really good place to invest.

However you should always always check the area out personally before you buy. This is why we are offering Ecuador beach rentals in this area.   For example we have…

ecuador beach rentals

a penthouse rental on the top floor here at Palmazul. This is the Vistazul clubhouse and and includes the swimming pool, tennis courts… and a spa.

The penthouse is right on the beach and is available for rent.  These units are fully equipped for longer term stays… kitchen… with full size fridge.

Living room…

Ecuador beach rentals

with a view…

Ecuador beach rentals

leading…

Ecuador beach rentals

two large private balconies…

Ecuador beach rentals

with these views.

Here is a sunset shot from this Ecuador beach penthouse.

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Incredible beauty is good news.

There are still really low prices on Ecuador’s coast… incredible value to our way of thinking. This is one reason we love Ecuador as a place to beat inflation..  Yet the sun is about to set on the really best prices.

Here is a patio shot.

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Here are two interior shots. Note all the hardwood trim and doors.

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Ecuadorian-beach-condo-interior

This is the backside of the upstairs unit.

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Here you can see the high quality of wood is used.

Ecuador-beach-condo-fixtures

This is an ideal place to stay if you want to travel the coast and get to know this stretch of Ecuador’s coast from Manta to Canoa where a great deal of the beach expansion is now taking place.  You can see below how tiny San Clemente is ideally placed between Manta and Canoa.

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You can dine in the clubhouse overlooking Ecuador’s wonderful Pacific coast.

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Dinner here is special too. You can visit this Ecuadorian fisherman when he brings in his fresh Pacific catch each day back to the hotel….where you can choose your meal. Few Ecuadorian coastal hotels offer this service.  Wonderful Pacific fish, crabs and shrimp that are huge…like this….cooked at the hotel minutes after they are brought off the boat.

Or stroll into nearby Ecuadorian coastal town of San Clemente for dinner or lunch.  The penthouse gives you miles of empty beach.

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Here we look to the left .

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And the right…more quiet Ecuadorian beach.

Let me hasten to add that it is the quiet that Merri and I love.  San Clemente is NOT for those who want a bustling city.

San Clemente is a charming rustic, coastal village, 45 minutes north of the port city of Manta , almost exactly in the middle of Ecuador ’s coast.

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This property is especially unique because…

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The village is quite and leads to dead end road that serves…

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this strip of the Pacific. The road runs only a mile or so and has speed bumps.  The penthouse is on the beach and the mountain is behind so no one can build.  No big project can come in a create a lot of noise.

Palmazul is perfectly located on a dead end road..enjoying proximity to town yet quiet as there is no through traffic. Transportation is also easy and fun…small motorcycles with a seat!

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San Clemente is a perfect starting point for exploring Ecuador ’s coast…in the middle so you can reach the north or south of the coast in a hurry.

Yet in San Clemente, the days are full. You are welcome to join the local fishermen who ride this surf out for the day.

Fish from the jetties, stroll the beach, travel the coast, hike, horse ride, play tennis or just relax around the pool or on the beach.

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Of course you can also work. Palmazul offers free wireless broadband for your laptop. Enjoy the peace and quiet of Ecuador ’s coast, but always stay in touch electronically with the rest of the world.

Your penthouse has the immediate sea view and private balcony so your comfort does not end when the sun sets.  As dusk arrives so does the seas breeze…fresh into your room.

Ecuador-beach-sunset

Cozy in your bed…

Ecuador beach rentals

The surf serenades you in a soft night’s sleep… on a king size bed so you’ll be ready for the gentle surf and Pacific waters warmed by Ecuador ’s never ending sun.

Rents are $135 a night for two. $177 a night for three.

Weekly rates are $750.

Monthly…$1,900.

Send Merri an email for rental details at merriscott@live.com

Gary

Learn how to earn while you live in a small town or on the beach… anywhere.
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Ecuador Massage


One great treat in Ecuador is an Ecuador Massage.

Readers regularly report feeling better… losing weight and dropping the need for medication when they stay for long in Ecuador.   More walking…. fresher food… no junk food…. more sun… less stress and the energy of the equator are part of the formula.

Perhaps also better health is due to more massages… because there are many natural health benefits to having a massage.

Not only are there some great massage therapists in Ecuador… the price is really low.  Most massages in the cities… sponsored by large hotels run around $40. If you know where to go and avoid the large hotels the price dramatically falls.

For example at our hotel in Cotacachi Ecuador, Inn Land of the Sun (formerly Meson de las Flores), we have a really good massage therapist and his massage hour is $25 (one hour).

Massage room at Inn Land of the Sun.

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Our massage room also has an infrared sauna so…

Ecuador-massage-room

you can enjoy a luxurious and inexpensive massage and sauna…  all for the same fee.

If you plan on visiting Ecuador and go to Cotacachi add a day for a treatment.

If you wish to go upmarket, an Ecuador massage in  Cotacachi…then go to one of the best spas in the world…La Mirage Garden Hotel and Spa… is a Relais and Chateaux spa and offers 17 different types of equisite massages.

For example here is the Ecuador Amazon massage.

Cotacachi Spa

Each room is a separate suite filled with antiques and with its own fireplace. Each is hidden and tucked into the gardens.

Even though we own our own hotel… we send many of our guests to stay at La Miarge and always suggest that they have a massage there! Our guests rave about it.

Take for example how La Mirage describes just one of its treatments:

Cofan Spiritual Ritual of the Amazon

Inspired by the Indigenous Inhabitants of Ecuador’s Amazon and their use of native plants of the rain forest.

The sounds and smells are combined in such a way that at the end of the ritual your body and spirit are in harmony and ready to experience this ritual of life.

First you enjoy a tub infused with guayusa and ishpingo leaves, both plants found only in the Amazon.

These essences are known by the Amazon people for their stimulating qualities. They are used in their rituals to heal the inner organs.

In addition the ritual adds mineral salts, lemon grass and essential oils.

The body is exfoliated with the guayusa and ishpingo leaves while in the tub.

Then you are given a 50 minute full body massage using more special oils and techniques with various sizes of bamboo sticks. This is a 90 minute treatment.

The soak and massage are performed in a chamber especially designed to enhance the spirit and sounds of the Amazon.

Merri and I love this treatment.  Wow!  You start when you step from a  tub built in the Amazon cave with a – hidden – deep – in – the – rain – forest atmosphere. The chamber, from the huge Amazonian carpet hung in a wondrous frame to the drooping vines and bamboo, has a vague moodiness. You really do feel Amazonized … forest lost … surrounded in gold tinted warmth … camp fired in deep mysterious woods.

I hope these photos share at least part of the secret – cave – in – the jungle feel I felt, warm, oiled, hidden and secure.

Enter into … the Amazon.

Here is the carpet.

Cotacachi Spa

The massage therapist awaits you for an immersion in the sacred plant oils … guayusa and ishpingo.

Cotacachi Spa

Guayusa, native to the Ecuadorian Amazon Rainforest, is in the holly family, related to Yerba Mate and Yaupon Holly. The leaves have the highest caffeine content of any known plant. When immersed, in addition to the stimulating effects on the skin, the essence enhances dream recall.

Ishpingo is the Quichua word for a type of native Ecuadorian Cinnamon tree found only in a small region of Amazonian Ecuador. The oil is an anti oxidant with antibacterial and antifungal activity.

The oils from these plants blend in the hot water to create a buttery, waxy feel…the aroma being akin to exotic cinnamon and spearmint … a delight that prepares and transports you into the deep forest feel.

Cotacachi Spa

The oils create a stimulation … dream like quality, while they cleanse the body and skin.

Then it’s time to enter your inner sanctum … the massage room.

Cotacachi Spa

The massage comes in two parts, beginning with the head and face while wrapped in heat … the Amazon sweat!

Then comes the full body massage given with Bamboo rollers, sacred music of the Andes and a crackling fire.

Afterwards enjoy the exquisitely beautiful round meditation room with a roaring eucalyptus fire. Wow.

The spa is often filled with dignitaries. The Queen of Spain stayed there.  One day I saw four US Senators and the actor, Kevin Bacon, visiting… all at once.

Ecuador Living subscribers can gain some extra benefits at La Mirage. Subscribers can see details in their password protected section. Click here.

Until next message, may all your massages be good.

See how to gain natural health benefits as you learn how to communicate in Spanish on four days.

Gary

Learn about Indian natural health benefits and Vedic Astrology.

Saturday Q & A


Here are our Saturday Question and Answers.

#1: Question on multi currency investing.

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

#3: Question about renting in Ecuador.

#4: Comment on Super Thinking Spanish.

#5: Question about TSA pat down and XRays.

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

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

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

Inflation is ruining the purchasing power of our wealth.

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

So what?

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

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

Regards, Gary

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

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

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

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

Your response would be appreciated on this.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Gary

How We Can Serve You

How to Have Real Safety

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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.

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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:

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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.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  The trends are so clear that I have created a short, but powerful report “Three Currency Patterns for 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but in this special offer, you receive the report, “Three Currency Patterns for 50% Profits or More” FREE when you subscribe to Pi.

Plus get the $39.95 report “The Platinum Dip 2018” free.

With investors watching global stock markets bounce up and down, many missed two really important profit generating events over the last two years.  The price of silver dipped below $14 an ounce as did shares of the iShares Silver ETF (SLV).   The second event is that the silver gold ratio hit 80, compared to a ratio of 230 only two years before.

In September 2015, I prepared a special report “Silver Dip 2015” about a silver speculation, leveraged with a British pound loan, that could increase the returns in a safe portfolio by as much as eight times.  The tactics described in that report generated 62.48% profit in just nine months.

I have updated this report and added how to use the Dip Strategy with platinum.   The “Platinum Dip 2018” report shares the latest in a series of long term lessons gained through 40 years of speculating and investing in precious metals.  I released the 2015 report, when the gold silver ratio slipped to 80.  The ratio has corrected and that profit has been taken and now a new precious metals dip has emerged.

I have prepared a new special report “Platinum Dip 2018” about a leveraged speculation that can increase the returns in a safe portfolio by as much as eight times.

You also learn from the Value Investing Seminar, our premier course, that we have been conducting for over 30 years.  Tens of thousands of delegates have paid up to $999 to attend.  Now you can join the seminar online FREE in this special offer.

This three day course is available in sessions that are 10 to 20 minutes long for easy, convenient learning.   You can listen to each session any time and as often as you desire.

The sooner you hear what I have to say about current markets, the better you’ll be able to cash in on perhaps the best investing opportunity since 1982.

seminars

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

In 2018 I celebrate my 52nd anniversary in the investing business and 50th year of writing about global investing.  Our reports and seminars have helped readers have better lives, with less stress yet make fortunes during up and down markets for decades.  This information is invaluable to investors large and small because even small amounts can easily be invested in the good value shares we cover in our seminar.

Stock and currency markets are cyclical.  These cycles create extra profit for value investors who invest when everyone else has the markets wrong.  One special seminar session looks at how to spot value from cycles.  Stocks rise from the cycle of war, productivity and demographics.  Cycles create recurring profits.  Economies and stock markets cycle up and down around every 15 to 20 years as shown in this graph.

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.

The chart above shows the war – stock market cycle.  Military struggles (like the Civil War, WWI, WWII and the Cold War: WW III) super charge inventiveness that creates new forms of productivity…the steam engine, the internal combustion engine,  production line processes, jet engines, TV, farming techniques, plastics, telephone, computer and lastly during the Cold War, the internet.  The military technology shifts to domestic use.  A boom is created that leads to excess.  Excess leads to correction. Correction creates an economic downturn and again to war.

Details in the online seminar include:

* How to easily buy global currencies, shares and bonds.

* Trading down and the benefits of investing in real estate in Small Town USA.  We will share why this breakout value is special and why we have been recommending good value real estate in this area since 2009.

* What’s up with gold and silver?  One session looks at my current position on gold and silver and asset protection.  We review the state of the precious metal markets and potential problems ahead for US dollars.  Learn how low interest rates eliminate  opportunity costs of diversification in precious metals and foreign currencies.

* How to improve safety and increase profit with leverage and staying power.  The seminar reveals Warren Buffett’s value investing strategy from research published at Yale University’s website.  This research shows that the stocks Buffet chooses are safe (with low beta and low volatility), cheap (value stocks with low price-to-book ratios), and high quality (stocks of companies that are profitable, stable, growing, and with high payout ratios). His big, extra profits come from leverage and staying power.  At times Buffet’s portfolio, as all value portfolios, has fallen, but he has been willing and able to wait long periods for the value to reveal itself and prices to recover.

keppler asset management chart

This chart based on a 45 year portfolio study shows that holding a diversified good value portfolio (based on a  good value strategy) for 13 month’s time, increases the probability of out performance to 70%.  However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.

Time is your friend when you use a good value strategy.  The longer you can hold onto a well balanced good value portfolio, the better the odds of outstanding success.

Learn how much leverage to use.  Leverage is like medicine, the key is dose.  The best ratio is normally 1.6 to 1.  We’ll sum up the strategy; how to leverage cheap, safe, quality stocks and for what period of time based on the times and each individual’s circumstances.

Learn to plan in a way so you never run out of money.  The seminar also has a session on the importance of having and sticking to a plan.  See how success is dependent on conviction, wherewithal, and skill to operate with leverage and significant risk.  Learn a three point strategy based on my 50 years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

The online seminar also reveals  the results of a $80,000 share purchase cost test that found the least expensive way to invest in good value.  The keys to this portfolio are good value, low cost, minimal fuss and bother.  Plus a great savings of time.  Trading is minimal, usually not more than one or two shares are bought or sold in a year.  I wanted to find the very least expensive way to create and hold this portfolio so I performed this test.

I have good news about the cost of the seminar as well.   For almost three decades the seminar fee has been $799 for one or $999 for a couple. Tens of thousands paid this price, but online the seminar is $297.

In this special offer, you can get this online seminar FREE when you subscribe to our Personal investing Course.

Save $468.90 If You Act Now

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive FREE the $29.95 report “Three Currency Patterns for 50% Profits or More”, the $39.95 report “Silver Dip 2017” and our latest $297 online seminar for a total savings of $468.90.

ecuador-seminar

Triple Guarantee

Enroll in Pi.  Get the basic training, the 46 market value report, access to all the updates of the past two years, the two reports and the Value Investing Seminar right away. 

#1:  I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free, easy diversified investing.

If you are not totally happy, simply let me know.

#2:  I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.

#3:  You can keep the two reports and Value Investing Seminar as my thanks for trying.

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

Subscribe to Pi now, get the 130 page basic training, the 120 page 46 market value analysis, access to over 100 previous Pifolio updates, the “Platinum Dip 2018” and “Three Currency Patterns For 50% Profits or More” reports, and value investment seminar, plus begin receiving regular Pifolio updates throughout the year.

Subscribe to a Pi annual subscription for $197 and receive all the above.

Gary


Ecuador Police Unrest


Ecuador police unrest creates a hard spot that rocks with turmoil.

ecuador-police

Ecuador’s police and part of the military are on strike. The Ecuadorian President is speaking to the nation as I write… so let’s take a moment to understand the problem and project what might happen.

Ecuador’s president is between a rock and a hard spot as he has been trying to enhance Ecuador’s infrastructure and help the poor all at the same time.

Unlike the US and some other governments, Ecuador does not have unlimited credit. This creates a problem as explained in a recent article at Bloomberg.com entitled “Ecuador will probably tap China pensions to finance deficit Fitch says”  The article says:

Ecuador will probably tap the nation’s pension fund and seek a loan from China to help finance its $2.7 billion budget deficit, according to Erich Arispe, an analyst at Fitch Ratings.

South America’s seventh-biggest economy may need as much as 4.3 percent of gross domestic product to fund the “relatively large” deficit, Arispe, a New York-based analyst at Fitch, said yesterday in a telephone interview.

Ecuador is using debt to increase spending on infrastructure projects and social programs in a bid to lower unemployment and boost economic growth, President Rafael Correa said in a June 5 statement. The nation’s default on $3.2 billion in bonds since 2008, declining oil production and a slump in private investment has crimped funding sources, Arispe said.

Correa “has to find a way to finance his ambitious investment projects,” Arispe said. “Given the limited potential of increased oil-derived revenue” and declining investment, “increasing debt is the option they have at this point.”

The extra yield investors demand to hold Ecuadorean dollar bonds instead of U.S. Treasuries narrowed 6 basis points, or 0.06 percentage point, to 10.36 percent at 9:09 a.m. New York time, according to JPMorgan Chase & Co.’s EMBI+ index. Ecuador’s spread has widened 23 basis points in the third quarter, compared with a 58 basis-point drop for the index.

Ecuadorean sovereign debt is the second-riskiest after Venezuela’s among 15 emerging markets tracked by JPMorgan, according to the bank’s EMBI+ indexes.

The government next year will also begin offering treasury notes with a term of less than one year to boost liquidity, Rivera said Sept. 24. Ecuador has proposed legal changes to allow the country’s banks to use short-term government bonds for as much as 75 percent of their reserves and let the government boost public debt to 50 percent of GDP from the current limit of 40 percent, Rivera said.

The article was correct in a number of respects… the first being that the government is trying to finance part of its debt with Ecuador pension funds.

Yesterday the government altered retirement and military regulations and at least three changes have led to a strike.

Change #1:  All government workers must retire at 65. In Europe people are striking because they want to retire early. In Ecuador people wish to continue to work.  However it is the second change that really creates the rub.

Change #2: Retirement pension buyouts will be paid one half in money and one half in government bonds. In other words, if no one else will buy Ecuador bonds let’s force them on retired government workers.  Americans should remember this ploy.  The US government has floated similar trial balloons about protecting pensions from stock market fluctuations with government bonds.

Change #3: The police and military are being affected. The police and military have many special benefits… military hospitals… bonuses for promotions… for moving, etc. The government has stripped all these away.  In retaliation the police are currently on strike.

As I wrote these details, President Correa was speaking to the public and one of our A TeamEcuador just sent me this note:

Gary President Correa told the people he doesn’t care.  He said he won’t back down on his decision and he said if  the policeman desire,  they can kill him.  That’s not good negotiation in my opinion.

There are several protests going on today.  Since the police are on “strike” no one will make sure that the protesters behave.

This is happening all over the country.   We do not know what will happen but the president went to talk to the police headquarters.  They refused to hear him.

The Asamblea (Congress) has no police protection at this time.  All public employees are going to march to the Carondelet (Presidential Palace) this afternoon, with no police protection to stop them.

I’ll keep you posted.

And we will keep you posted.

Gary

Join us at our October seminar to learn how to earn and diversify globally.

Read Ecuador will probably tap China pensions to finance deficit Fitch says

Ecuador Interesting


Ecuador is interesting but what is below is more interesting than most messages about Ecuador. You will see why below.

You may have read in the news about the problems of Ecuador in recent days and wondered why I am investing in Ecuador. One of our goals is to help our readers get Ecuador news beneath the news.  The problem today with popular media is that it has to cater to the lowest links for the sake of volume. Sex, scandal, death and destruction sell and in the mad scramble to fill every issue with as much attention grabbing horror as possible, most media make over small bits of the most horrifying events of the day and little more.

Our goal is to dig deeper. In this case I turned to several Ecuadorian friends for their views. One is a powerful Guayaquil businessman connected at the highest political levels. The second is an attorney from Quito. I chose these two because one problem in Ecuador is the continual struggle between the populations in the cities of Quito and Guayaquil. As one Guayaquileno once put it, we make the money here in Guayaquil and they (the politicians) spend it in Quito. The cities have existed for centuries in a state of mutual distrust.

The third is a foreign businessman who has lived in Ecuador for many years and has a very successful business, the fourth an indigenous leader.

The first reply is from my friend from Guayaquil. For reasons that will be obvious he remains unnamed. He is connected at the highest levels of business and government in Ecuador.

My friend writes:

“Ecuador is still under the spell of gloom that befell about two years ago. I saw it one year before that, but I did not know what to do about it, and I did not want to believe it either.

“Now the opposite has happened. There is a small light showing at the end of the tunnel. It is small, but steady. God bless it. We must not talk about it – too much. It is called Manta.
“Manta did not exist in colonial times. The pirates and sea robbers made it unthinkable to have a port facing the ocean. The nearest port had to be thirty miles in, at least.

“I was in Manta, I had not been there for ten years at least, it has improved a lot in that time. There is so much that can be done. Manta is like a little baby. In Manta, the help can come in little ways, totally invisible to the public that is not “in”. Hospital, schools, Univ., urban development, you name it.  As I said, all this is very small right now, but it is moving ahead in the right direction.

“This is all very complicated, I hope it works for the best. Unfortunately, it brings us close to our President, and that is not what we want, we want to keep him away.

“There has been an Indian rising. They have gained attention but unfortunately they do not have a plan, or people, or anything. It was just a rising of “down with everything”. Down with the President. Down with Congress. Down with the Judicial. This is a typical rising of communal soul formation, or soul development, it is basically downs versus ups.

“They are however much better organized and have clearer objectives, and words than they had, say fifteen years ago. Of course they still need another time to be at par as an ethnic group. It will come if you give them time, fortunately.

“The unfortunate part is that it is all taking place at a moment when their negativity can cause a lot of damage, they also say down with dollarization.

“The new President? He is my personal friend, a great guy, but not the right man for the crisis, as he is too flat footed. Everything the previous man has done is wrong.”

Another Viewpoint

The second insight on Ecuador was sent from Dr. Andres Cordova. Dr. Corova is the grandson of Ecaudor’s past President and his law firm provides legal counsel for many financial institutions. The firm works with foreign banks established in Ecuador and otherwise and is legal counsel for the Central Bank of Ecuador, the Superintendency of Banks.

Some of the members of the firm have participated in the making of some of Ecuador’s monetary and banking decisions and one of the senior partners has been Superintendent of Banks on two occasions.

Though the firm acts as counselors to many of Ecuador’s finance and banking entities, they advise on specific areas, upon request, and do not represent, in any way, the institution’s position on different subjects so they can offer us an unbiased view.

The firm has information and views from inside Ecuador’s finance and banking fields and great contacts so they can prepare reports, furnish helpful information, and answer inquiries promptly for any member who wishes to retain them for any specific project.

Dr. Cordova writes:

“We had quite a recent scare. During the past several months the people of Ecuador had become increasingly infuriated with the President’s conduct of governmental affairs.

“We had a situation where very little support was given either to President or to this military insurrects. A Constitutional solution had to be applied.

“As much as I believe the president to be corrupt and incompetent, I was deeply angered and saddened by the whole situation.

“The bottom line is that there was some sort of democratic solution to the crisis. The Country is calming down. There is this bitter feeling about the whole situation, but who knows, maybe it was for the best.

“What is going to happen? Well, first of all, most of the country sees this outcome as the proper one, given the circumstances. This is a good thing, for it somehow reestablishes the faith and tranquility we all need. Also, it brings stability, for all major players in this social and economic machinery are in favor of the outcome.

“The international community, represented by the different States, has manifested its approval of this Constitutional solution to the crisis, and is currently supporting Ecuador (at least rhetorically) in its struggle to shape up.

“The new President is regarded to be a good, honest man. He has changed most of the different Ministers and Secretaries of the Government and it is likely we are somehow facing a fresh start. Maybe it’s a little bit of wishful thinking on my part.

“These past days we have seen a very good attitude in most of the industrial sector. The have committed to lower some prices and to raise the wages. Somehow a feeling of responsibility and that we are all part of the solution is surfacing. I sure hope so.

“The crisis is very deep and we still have some rough years ahead. I would want to believe that we have nowhere else to go from here but up.

“I think after this episode the Country is going to try and move forward with more enthusiasm and drive. The new President is going to be in power for the next three years. This will help stabilize the country, for no one will be speculating on the elections, as if they were to be held in a few weeks or month’s time.

“This new President may do a much better job than the last one. Most of all because he does not come into power all tainted by strings-attached political supports and contributions that he needs to pay back. He can freely conduct the government without having to pay back all sorts of favors. Also, he is apparently an honest man.

“The Country is well aware of this and there is some sense of peace after all. It is still too early to tell how all of this will affect the country in the following months or even years, but it is safe to say that Ecuador still offers good and safe investment opportunities, provided they are well reviewed and screened.

“I understand many foreign investors may view Ecuador as an anarchic country which is falling apart by the day, where their investments are in no way safe. This is not true.

“In this crisis, many good investment opportunities exist. Real estate, for example, offers very nice investment opportunities. This kind of investments are, of course, better on the mid to long term.

“When the better times arrive, hopefully some two to three years from now, and then on and on. As exports grow and the economy improves, the new flows of cash and the economic recovery and good health will make it more difficult to find good deals on certain areas.

This may be a signal to buy now.” Andres

The Third Viewpoint

The third reply is from my friend, the European businessman who has lived in Ecuador full time for the last six years and has many business interests and real estate holdings:

“The last president seemed to be a better man but he had done too many dirty deals with the political and specially the financial sector to be trustworthy.  The current president seems to be a very honest man with no such connections and that may be what the country need now. 80% of the people still want to dissolve the congress, mainly because of the corruption.

“I do however believe that the president will face huge demonstrations again this summer when they will have to increase the prices of gas, propane, electricity, etc. The country is said to spend US$ 700 million on subsidies this year if they do not increase the prices. This country may be impossible to run.

The final rely may be the most important of all as it is the Indiginistas that (quite rightly) have been making the fuss.
“I appreciate dear friend that the international news are very alarming; but the reality is very different since here in Ecuador everything follows with tranquillity and in the direction of the improvement of abundance and peace.”

This is why I have already started taking investors to Manta, Ecuador, a major seaport (350,000 pop.). The flood of Americans will make the town boom. Timing to make money could not be better. Check www.garyascott.com for more details.

There you have it…an article that seems to explain why Ecuador makes sense as a place to invest.

So Ecuador is interesting.  Here is why this article is more interesting than most messages about Ecuador.   This article was written April 15, 2000, over eight years ago.  You can see the original message in our archives at https://www.garyascott.com/2000/04/15/1266.html

The daily news is sensational and incites worry.  Those who look beyond it have a definite investing edge. Had I let worries reported in the news stop me from seeing the true fundamentals of Ecuador’s potential a decade ago, I and hundreds of my readers would have missed fortunes.

Ecuador still offers good opportunity now.

See why Manta makes sense now

Until next message may your news be positive, true and good.

Gary

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