Tag Archive | "equities"

Are We 13 Months From Disaster?


Are we on the verge of the biggest financial disaster seen in our time…. a disaster waiting to happen that’s likely to take place in less than 13 months?

Could this wrath… that comes from fake news, change your life dramatically even this year?

If so, you can be one of the few who use this downfall to create a solid financial position, even though it will bring financial disaster for most investors.

Learn how to beat the upcoming economic melt down in a no-risk, amazingly simple way.

The crash may be imminent because information technology is changing at a rampant pace and some “Fake News”… that’s just ahead… could hit us any day, and it will destroy all the centuries of proven wealth building secrets.

Most investors will be swept away.

Fortunately, you don’t have to be a part of the ruin.

Knowing what to do before this disaster hits can solidify your savings and investments… fix your income safely for life, in just a few short years… even in less than 13 months!

And it’s not just oil tycoons, steel barons, and bankers who’ve earned immense profits thanks to a new twist you’ll learn on a timeless strategy, that you can learn below.

Anyone can eliminate the upcoming financial turnover with a strategy, that simplifies information.

gold

Gold and value protect us from fake news.

The huge risk is coming because information (or lack thereof) has always been the key to investing success and disaster.

Please consider this fact.

Before the telegraph became mainstream, one New York based robber baron made a fortune using carrier pigeons to get news faster from the West.

That was smart investing. Then he had an idea (hence the nickname “robber”).

He thought, “Why not manipulate the news?”  If his pigeons brought good news from San Francisco, he spread bad news in New York, then quietly bought up shares that would rise when the truth came out.  He made even more profit at the expense of others.

If the pigeons were bearers of bad news (like the San Francisco earthquake) he floated some good news and started selling.  He made a fortune.   Thousands of investors who bought the good news, lost… often everything.

Avoiding manipulation of information has also been a key to investing success… and it is more urgent, but harder than ever before.

A research study of stock market manipulation shows that information deception is common.

The study, entitled “Stock Market Manipulations” (1) made in a special program at the University of Houston shows how fake news can lead to disaster.

This research is important because it was done by a university, not a bank or business where information manipulation is rampant.  University of Houston is high ranking in the 2020 edition of “Best Colleges” and the report came from a special graduate program for business at the uni’s  C.T. Bauer College of Business that connects industry to academia.

This is Houston’s most comprehensive business school and the faculty leading the research there are distinguished scholars who have substantial backgrounds in the professional world, providing first-hand experiences in business.  Their research is for study, not profit… no hidden agendas… no axes to grind… no reputations to protect… no share prices to pump and dump.

The study shows how stock market manipulation can occur in a variety of ways, from insider trading that pumps up stock price to accounting and earnings manipulation.

The research shows that it’s not just individuals who manipulate markets.  One case study entitled “The Cartel” shows how in 2015, five of the world’s largest banks, Citibank JPMorgan, Chase, Barclays, UBS, and Royal Bank of Scotland were involved in rigging the U.S. dollar-to-euro exchange rate, stealing millions from currency investors who were unaware.

This was not Citibank’s first market manipulation either.  A decade earlier while trading in Eurozone bonds, Citigroup was able to profit from market rules by placing orders to sell 11 billion euros worth of 200 different bonds within two minutes, thus taking advantage of the forced slow adjustment of prices. Citigroup later repurchased 4 billion euros worth of bonds before many dealers stopped trading and netted a profit over 15 million dollars in just hours.

These are not isolated cases either.  The research found 142 cases of stock market manipulation over the ten years covered in the study.

Market manipulation was up 37% in a decade, according to the U.S. Securities and Exchange Commission (SEC).  In fact, nowadays, it’s par for the course.  Numerous hedge fund managers have admitted that they habitually manipulating the market.  They call it “a fun and lucrative game”.

Social media and fake news make stock manipulation even worse.

Examples?  A couple of years ago there was a barrage of news about Russian hacking and Russia retaliatory sanctions of shutting down the Anglo-American School of Moscow. This was an unverified, unsourced, and totally incorrect story published by CNN and Business Insider, but it helped push Russian shares prices down.

In 2013 a hacked Associated Press tweet about an “explosion” that injured Barack Obama wiped out $130 billion in stock value in a matter of minutes.  Stock prices recovered shortly but those who lowered the price of a stock and knew there was no explosion and that stocks would recover were in a position to make hundreds of millions in high frequency trading in minutes.

This type of fake news manipulation is increasing in speed and the problem grows every day.  Disinformation makes us question everything.   This creates three event risks that will grow rapidly and suddenly over the next year.

The three risks for fake news are, the Trump impeachment investigation, the 2020 Presidential election and an overvalued, US stock market.

These three calamities can come together… at any times between now and the 2020 Presidential election… to create a market wrath that investors have rarely seen.

The reason these three distortions are so dangerous now is that stock markets traditionally moved in 30 years cycles.  The chart below from Macrotrends.net (3) portrays this clearly.  The market highs and lows over the century are about 30 years apart…  until 2013, when the market was expected to shift from bull to bear.

Artificially induced low interest rates kept the US market afloat.

macrotrends.com

Overextended, poor value, bull markets are disasters just waiting to happen. 

The crash begins with some form of bad news.  This news trigger, that causes the equity stampede, is normally not even relevant… just a spark that starts the fire… a straw that breaks the camels back.

Yet when the bulls stampede and turn into bears… the results are truly ugly for the average investor.   The tiny spark that will ruin millions does not even have to be true.

We, as investors, are terribly vulnerable to fake news.   The solution is a long term portfolio of good value equities and precious metals.

Why precious metals and value equities?

Both the metal and value asset classes always rise in the darkest hours because they are timeless.

Horace, the Roman poet, wrote about the value of time in one of his epic poems.

“Time will bring to light whatever is hidden; it will cover up and conceal what is now shining in splendor.”

Time reveals truth and truth overcomes fake news.

Here’s the reason why a value equity-gold-silver balanced portfolio is the first step in surviving the upcoming stock market rout.

Another chart at macrotrends.net (4) shows the price of gold for over 100 years.   Compare gold’s price movement to the Dow Jones Industrial chart above.  When the Dow is up, gold’s price is down and vice versa.

Equities combined with precious metals create a balancing act that provides safety and liquidity when it’s needed most.

macrotrends.com

Why equities?

Research at Keppler Asset Management (more on Keppler in a moment) provides an 88 year view of various investment alternatives.

The performance clearly reveals that while precious metals provide stability, equities provide the best long term results.

keppler

Why Value Equities instead of Growth equities?

Another Keppler, 86 year study outlines that growth equities are good, but in the long term, value shares dramatically outperform growth stocks, by 2.1% per annum (11.3% per annum vs. 9.1%).

keppler

Why Long term?

Most of us are terrible short term investors due to human nature’s greater desire to avoid pain than gain pleasure.  We naturally “lose it” and react emotionally when faced with loss instead of tempted with gain.

Loss aversion, is part of behavioral economics that we should never ignore.  This may be the most important aspect of investing because we, as humans, are susceptible to psychological pain created by the perception of loss.

Our bodies are designed so that the pain of loss is far greater than the pleasure experienced from gain.

We should not count on besting this human evolution.  Even when we have the best intentions and education we cannot always overcome this bias.  Animal instincts win out.

This nature to avoid loss creates stress that brings disaster when it comes to making investing decisions.

Here’s how to reduce stress…  add safety… increase long term profits.

Invest only in low cost good value equities indices.  Ignore day to day movements and think four years ahead.

Don’t plan on liquidating any equity unless it has a change in value.  If the price rises or falls on a month to month basis… don’t care!  Don’t even register the fact.

Build a strategy around quarterly value projections using a diversified, equally weighted portfolio of  good value stock markets.

The chart below shows how Keppler Asset Management uses this four year strategy in its projections.  The chart shows Keppler’s entire real-time forecasting history for the KAM Equally Weighted World Index, starting at the end of 1993.

Keppler’s numbers are based on relationships between price and value over the previous fifteen years moving forward in monthly increments and thus adjusting steadily to an ever-changing global market.

keppler

Keppler’s long term projections have been spot on for almost a quarter century.

Keppler’s four year strategy statistically provides a well diversified portfolio that statistically lowers risk, increases profit and very importantly, reduces stress!

Fake news doesn’t work long term.

The good value strategy is useful in today’s trutheless society because truth and value eventually prevail in stock markets.

Fake news creates short term reactions, in life, in politics and in stock markets.  Investors who ride through the ups and downs of the markets gain the greatest financial stability and profit.

Why Now?

An explosive purchase volume recently set value investing on fire.

Investors made a dramatic shift from growth to global value equities starting on September 9, 2019.

Value stocks worldwide have lagged growth stocks since the onset of the bull market ten years ago.

This means that currently, international value stocks remain among the cheapest in the world.  As a group, they are  trading at 10.5 times earnings, 0.89 times price-to-book (11% below net asset value) and yielding 3.6% average dividend based on the iShares Edge MSCI International Value Factor ETF (symbol IVLU) chart below.

The investment objective of the iShares Edge MSCI Intl Value Factor ETF is to track the investment results of an index composed of international developed large-and mid-capitalization stocks with value characteristics and relatively lower valuations.

The chart below from WWW.finance.yahoo.com shows the spurt of investments (green bar at bottom of chart) on September 5, to 9, 2019 that drove the value share prices up.

That spurt of orders September 5, 2019 was the largest since the fund’s inception.

ishares value

The chart above shows that value investments have been dogged for a decade.  Now they are hot and there is plenty of room for more upwards correction.

Here is an offer that allows you to pick the best value equities, along with a balance of precious metals and brings you the probability of the highest long term returns, with minimal downside risk.

Fake News is the sharp edge of modern communications that have ripped the entire fabric of the global economy.

We are flooded with too much information.  Much of it is fake.  This problem is at its worst when it comes to investing in shares.  On any one day we can read, watch or hear hundreds of pundits, thousands perhaps, tell us how markets and the economy are ready to collapse.  Other hundreds, or thousands, tell us how markets and the economy are ready to skyrocket higher.

We have to choose… who is correct!  The wrong choice can destroy us financially.

The emotions created by fake news puts our investments, even our lives, through anxiety and stress, at risk.

The answer is “Be Easy”.  Really.  There is nothing we have to do that will be done better because we are up tight.

Life becomes complex because we don’t know which words to believe.

The solution to this complexity is simplicity.  That’s why I make this special offer of a simple and easy solution to escape the global economic complexities created by fake news.

The simple solution is math!

I follow slow moving mathematical information rather than economic news.  My main source of math based value information comes from Keppler Asset Management.

Keppler has a “Top Value Strategy” based on math that, since it started over 25 years ago, has outperformed stock market averages by almost 50%

keppler

keppler

The green line shows the performance of diversified Top Value value investing from the Keppler Asset Management July 2019 Developed Market Value Analysis.

The difference from 1969 is that $100 grew to $38,237 instead of $6,331!

Though this past performance is no guarantee of future returns, the chart above shows the power of diversifying globally in value equity markets.

Yes, the annual returns in the chart above shows how value investing takes time.  In the past ten years, value shares have been dominated by growth sectors.

Keppler’s analysis begins with a continual researches of corporate information on thousands of shares in 46 major stock markets. Keppler 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.

Fwd: keppler

Michael Kepler CEO Keppler Asset Management.

Keppler explains why a Top Value Country Selection Strategy for equities is important and says in his analysis: Among the generally accepted reasons for taking a global perspective in investments is the historical fact that no nation can maintain economic and political pre-eminence ad infinitum.

Studies have shown that, regardless of the investor’s national market and currency, diversified global equity portfolios, over longer periods, offer higher returns at lower risk than investments in national markets.

Keppler Asset Management Inc. (KAM) was  founded by Michael Keppler in 1992.  KAM is an SEC–registered investment advisory firm dedicated to finding and exploiting investment opportunities in the global equity markets. Based in New York, they advise institutional investors worldwide and help manage published mutual funds with total assets exceeding two billion US dollars. Plus they advise many private pension funds by specializing in active quantitative portfolio strategies that aim to deliver superior long-term performance and seek to limit risk through a firm commitment to value.

Starting in 2009, KAM was named Best Fund Company in the Fund category, five years in a row, by Capital, a leading German business magazine.

That’s my simplicity secret for keeping track of where to invest.  Using Keppler’s data has served me well for 25 years, allowing me time to get on with life rather than being drowned in a sea of conflicting opinions about what investment to make next.

More good news is that Keppler does not manage individual accounts and though SEC registered and headquartered in New York, does not mange funds for US customers.

That’s why I created our Purposeful Investing Course, one of the few, if not the only sources of Keppler analysis for individual investors.

Here is how to tap into this valuable information on a no risk basis right now.

The Purposeful Investing Course combines Keppler analysis with research on low cost, good value country ETFs.

This is why my core stock portfolio consists of 19 country ETFs, along with precious metals.   This is also why this position has hardly changed in four years. During this time we have been steadily accumulating the same 19 shares and have traded only three times.

This portfolio above is based on stock price to value analysis built around 91 years of stock market data.

The value analysis is used to create a portfolio of MSCI Country Benchmark Index ETFs that cover  stock markets that are undervalued.  I have combined my 50 years of investing experience with the study of the mathematical market value analysis of  Keppler Asset Management.

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 one stock in that country is an attractive investment.  This eliminates the need for 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.

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 hold now.

70% of the equities is diversified into iShares ETFs that represent Keppler’s good value (BUY rated) developed markets: Australia, France, Germany, Hong Kong, Italy, Japan, Norway, Singapore, Spain and the United Kingdom.

30% of the equities are invested in Keppler’s good value (BUY rated) emerging markets: Brazil, Chile, China, Colombia, the Czech Republic, South Korea, Malaysia and Taiwan.

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

The equity ETFs in my portfolio are balanced with investments in silver, platinum and gold.

You can create your own good value strategy.

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

You get this course when you enroll in our Purposeful Investing Course.

Enroll in the course.  Get the 130 page basic training, a 46 stock market value report, access to all the updates I have sent in the past three years, two more reports on investing (described below) and an online Value Investing Seminar right away. 

You also begin receiving regular emailed updates.  Each update examines the current activity in a value ETF, 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 course.

Plus get the $39.95 report “The Silver Dip 2019” 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 Silver Dip Strategy with platinum.   The “Silver Dip 2019” report shares the latest in a series of long term lessons gained through 40 years of speculating and investing in precious metals.  I released the 2015 report, when the gold silver ratio slipped to 80.  The ratio has corrected and that profit has been taken and now a new precious metals dip has emerged.

I have prepared a new special report “Silver Dip 2019” 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 the upcoming market shifts.

seminars

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

This year I celebrated my 51st anniversary 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.

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.

* 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 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 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.

For over 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 Purposeful Investing Course.  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 so you pay only $197.  Plus you receive FREE the $29.95 report “Three Currency Patterns for 50% Profits or More”, the $39.95 report “Silver Dip 2019” and our latest $297 online seminar, a total $665.10 value for only $197. for a total savings of $468.90.

ecuador-seminar

Gary Scott guarantees “a benefit or your money back”.

Triple Guarantee

Enroll in the Purposeful Investing Course.  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 now before the crash. 

#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.

#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 basic training, 46 market value report, two reports and Value Investing Seminar as my thanks for trying.

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

Subscribe to the Purposeful Investing Course now, get the 130 page basic training, the 120 page 46 market value analysis, access to over 100 previous Pifolio updates, the “Silver Dip 2019” and “Three Currency Patterns For 50% Profits or More” reports, and value investment seminar, plus begin receiving regular value updates throughout the year.

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

Your subscription will be charged $299 a year from now, but you can cancel at any time.

Many investors will be ruined when the bloated US stock market balloon bursts.  Panic is an investor’s worst enemy.  News is skewed to the bad and dramatic.  News is selected to sell, not inform.  Fake news exacerbates this reality.

This is why using financial information rather than economic news can save you from the upcoming “Fake News” disaster.

Gary

(1) www.bauer.uh.edu/wu/Papers/JOB2006_StockManipu.pdf

(2) www.cnbc.com/2019/10/09/facebook-tells-biden-campaign-it-wont-remove-false-ads-from-politicans.html

(3) www.macrotrends.net/1319/dow-jones-100-year-historical-chart

(4) www.macrotrends.net/1333/historical-gold-prices-100-year-chart

 

 

Multi Currency Upgrade – Dollar Downgrade


The recent Standard & Poor’s downgrade of US debt will push the US dollar down. 

multi-currency-phrases

When it comes to multi currency investing… as the photo above at Google shows we are number one.  So many readers have been asking me, “What does this downgrade mean?”

The downgrade and the recent stock market plunge create some special opportunity.

Every equity in my multi currency equity portfolio (sent to you in early June) was down last month.

JI European Equity Mutual Funds  Euro  – 13%

Suntec Singapore Real Estate Reit    Spr$  -1.3

Ishares Maci Latin America  USD               -14%

Jyske Bank, Copenhagen    DKK                – 16%

KGHM Polska Miedz    PLN                       –   9%

Brookfield Renewable Power CAD          –    2%

Unicredit Euro                                             –   9%

Axel Springer AG   Euro                           –   11%

Sky Deutschland AG    Euro                   –     8%

Silver Wheaton Corporation US$         –      1%

When you see everything in a diversified portfolio drop in this way… the markets are getting oversold. Good value is created.

The US downgrade will have negative global but not everywhere!  Some places will profit.  This means that uncertainty is creating a sell off not supported by fundamentals.

Everything in Europe of course has been hit due to the European debt crisis.  The shares in the Polish mining concern KGHM Polska Miedz especially offers opportunity. Good European banks also offer potential.  The German shares especially offer potential when they are down.

The Silver Wheaton shares suggest that smart investors loaded up on the precious metal in anticipation of the downgrade and ensuing panic.  Now these investors are taking profit.

This may be a good time to pick up good value Latin and European equities and to sell metals on peaks.

Plus, surprisingly the downgrade seems to have caused the greenback to strengthen.  The chart of the dollar to the Brazil real gives an example which shows the dollar falling, falling, falling and suddenly spiking back.

dollar brazil

Panic will normally send the thundering herd in the wrong direction.  Recent events in both the US (the debt ceiling fiasco plus the downgrade) and in Europe (the added Italian risk) have created so much uncertainty that investors do not know what to do.

Jumping back into the dollar is similar to horses running back into a burning barn.

Watch for panic markets and invest in the opposite direction!

There are five ways to combat the destructive forces of the downgrade that will raise havoc with your purchasing power.

Multi Currency Investing through US brokers and bankers abroad is just one of the five. The others include commodities, real estate,  living in lower cost zones and having your own micro business for extra earnings, freedom, fulfillment and fun.

We have specialized for over four decades in helping our readers excel in these five inflation beating sectors and have a full schedule in the year ahead!

Sept 23-24-25, 2011  Investing & Business Beyond Logic, North Carolina with Blaine Watson

blaine watson

(Blaine Watson teaching delegates and International Club members at a previous seminar.)

Oct. 7-9, 2011  International Investing & Business Made EZ,  Jefferson, NC.

Feb. 10-11, 2012  International Investing & Business Made EZ  Mt. Dora, FL.

March 8-11, 2012  Super Thinking + Spanish, Mt. Dora, Florida

June 22-24, 2012 International Investing & Business Made EZ,  Jefferson, NC.

Gary

Schedule subject to change. Always check final schedule at www.GaryAScott.com/catalog

Save  $5,789.  Join the International Club and attend seven seminars FREE plus receive four online business courses, plus three bonuses… a $7,588 value for $1,799.

The big benefits of belonging to the International Club are the power of repetition, updates and international friendships.  As a club member you become friends with other members as you meet again and again.

International Club members are invited to our Florida home during the winter seminars.

Your first savings is on waived seminar fees for seven seminars in the next year.

As you will see below you can attend seven Florida & North Carolina seminars that would otherwise cost $5,943.  The $1,799 membership fees saves you $4,144 right off the bat.

Attend all these seminars FREE.  Enroll in International Club here

Ecuador Tours by Jean Marie Butterlin, Bonnie Keough & Stephen Milden

Aug. 31-Sept.   1-2-3-4  Ecuador Export Tour

Sept. 5-6       Shamanic Mingo Tour

Sept.   8-9-10  Imbabura Real Estate Tour

Sept. 12-13-14  Coastal Real Estate Tour

Sept. 16-17-18  Cuenca Real Estate Tour

Oct. 17-18-19 Manabi Agricultural Tour

Oct.  25-26-27  Cuenca Real Estate Tour

Nov. 9-10-11    Imbabura Real Estate Tour

Nov. 14-15-16   Coastal Real Estate Tour

Nov. 18-19-20   Cuenca Real Estate Tour

Dec. 12-13-14  Cuenca Real Estate Tour

See details about a multi tour discount.

See Details about a customized private real estate tour.

Japan’s Earthquake Fortifies Investing Globally in Water


Invest Globally in Water.

Investing in water can help fight inflation and help the environment as well.

A special report on feeding the world in the February 24th 2011 issue of the Economist entitled “No easy fix:  Simply using more of everything to produce more food will not work” outlines a huge global problem that due to the nuclear accident in Japan just grew worse.

Florida house

Our front yard in Florida.

I have long recommended investing in water. See links below on research I have posted at our sites over the last ten years.

This is why our real estate purchases usually involved a lot of water.

Little Horse Creek

Spring fed Little Horse Creek flowing through our Blue Ridge farm.

Here is an excerpt from “No easy fix:  Simply using more of everything to produce more food will not work”: If crop yields are to match the rise in population, then some of them will have to go up dramatically. The world’s population is growing at just over 1% a year, so—allowing something extra to feed animals because of rising demand for meat—staple yields will have to rise by  around 1.5% a year. This may not sound much, but it is a great deal more than current growth rates. CIMMYT reckons that, to keep prices stable, the growth in rice yields will have to increase by about half, from just under 1% a year to 1.5%; maize yields will have to rise by the same amount; and wheat yields will have to more than double, to 2.3% a year.

Drink sparingly

Water, on the other hand, is crucial. At the moment it is probably agriculture’s critical limiting factor.

According to Nestlé’s Peter Brabeck, roughly 4,200 cubic kilometres of water could be used each year without depleting overall supplies.  Consumption is higher, at about 4,500 cubic kilometres a year, of which agriculture takes about 70%. As a result, water tables are plummeting. The one in Punjab has fallen from a couple of metres below the surface to, in parts, hundreds of metres down. The rivers that water some of the world’s breadbaskets, such as the Colorado, Murray-Darling and Indus, no longer reach the sea.

Scarce and precious

By 2030, on most estimates, farmers will need 45% more water. They won’t get it. Cities are the second-largest users of water, and those in the emerging world are growing exponentially. They already account for half the world’s population, a share that will rise to 70% by 2050. In any dispute between cities and farmers, governments are likely to side with cities. Agriculture’s share of the world’s water used to be 90%, so it has already fallen a long way. It will surely decline further.

The reason water matters so much is that irrigated farming is so productive. It occupies only one-fifth of the world’s farmland but contributes two-fifths of the world’s food output. Rice, the world’s  most important crop in terms of calories, is mostly irrigated, and is  especially sensitive to shortage of water, stopping growth at the first sign of getting dry.

Water problems will worsen both because irrigated areas will suffer disproportionately from the effects of climate change and because diets are shifting towards meat, which is “thirsty”. Arjen Hoekstra, of the University of Twente, says it takes 1,150-2,000 litres of water to produce 1kg of wheat, but about 16,000 litres of water for 1kg of beef. As more people eat more meat, rising demand by farmers will collide with contracting water supplies.

There are things farmers can do. Roughly a third of the water used in fields with ordinary gravity-fed irrigation is reckoned to be wasted  (more accurately, it recharges the aquifers without being taken up by  plants, which is not quite the same thing). Switching to drip-feed irrigation means that watering becomes more precise, cutting consumption per unit of output. Jain Irrigation, the largest drip-feed company in India, has shown the technology can work for smallholders, cutting their water usage by about 40%. Drip-feed irrigation also boosts overall yields because the plants are watered at the right time and get the right amounts.

Overall efficiency gains in the use of water could be large. Israel wastes only about a tenth of its water, and if everyone were equally  efficient, the world’s water problem would be much less pressing. Israel makes widespread use of low-volume irrigation such as drip-feed and micro-sprinklers, which is expensive. The FAO reckons that over the next 40 years irrigation will require cumulative investment of almost $1 trillion. That may be forthcoming eventually, but it won’t be soon.

No-till agriculture, an agronomic practice in which farmers do not plough up the land but leave part of the previous year’s crop on it,  also preserves water. The residue acts like a blanket, lowering the soil temperature by a degree or so in the tropics (and thus helping to combat the effects of global warming). It also prevents water run-off and reduces evaporation by 30-40%, reckons Patrick Wall of CIMMYT. As a bonus, adds Shivaji Pandey of the FAO, no-till and low-till farming sequester about 200kg of carbon per hectare per year. In parts of India, the time saved by not ploughing after harvest also makes it possible to grow an extra crop.

So why hasn’t this miracle cure been adopted universally? Because of  weeds. They like to grow in the mat as much as crops do. It helps to  have plants that are genetically engineered to resist weedkillers, but Europe has banned those. This has meant that no-till was used on only 6% of farmland in developing countries and hardly at all in Europe in 2008.

Why Japan?

The nuclear disaster in Japan will cause everyone to reconsider nuclear power.  This is good… but… rather than turn to clean energy, the likelihood is that there could be more coal used.  Coal mining hurts the environment as does the burning of coal to generate electricity.  More carbon emissions equal more acid rain.

SPECIAL NOTE: Our report Protect Against Radiation Report shows seven steps we took to restore our health after absorbing high doses of radiation from Chernobyl. There is a lot of other information about ways to have radiation protection and to avoid radiation protection risks and we are sending regular free updates. See the latest radiation update at Radiation Protection Risks.

Investments in water

Investments in drip irrigation and in India make sense so one company worth looking at is Jain Irrigation Systems.

Jain Irrigation Systems Limited was founded in Jalgoan, India 1963, and has over 6,000 employees  that make and sell irrigation systems. They have a big US headquarters near us here in Florida.

Jain offers irrigation systems and all the components for this form of irrigation.

water-shares

In addition, it offers solar water heating systems, solar photovoltaic appliances, and bio-energy sources; hybrid and grafted plants; and poly and shade houses, as well as provides services turnkey project services, and agricultural and engineering consultancy services. Jain Irrigation Systems Limited provides its solutions and services for the urban household, urban housing, community development, mining, plant tissue culture, chemical, oil and gas exploration, optic fiber ducting, advertisement and signage, landscaping, water shed development, waste land development, fruit and vegetable processing, and farm production and management markets, as well as for small farmers, green houses, and sugar factories. It primarily operates in India, Europe, and North America.

Shares are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).  The shares have risen steadily over the past five years, but are now lower due to the stock split at the end of 2010.  This could be a really good long term investment that helps the environment.

Gary

The real estate broker who helped Merri and me find Mt. Dora waterfront property bargains will conduct a Mt. Dora real estate tour.  Come a day early to Blaine Watson’s April 9-10 Investing & Business Beyond Logic course in Mt. Dora.

Learn how to invest globally in water at our June 24-26 International Investing and Business Seminar in North Carolina.

Read A special report on feeding the world