Tag Archive | "Germany"

Brazil Multi Currency Opportunity


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

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

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

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

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

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

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

multi-currency-debt

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

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

ecuador-tickets

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

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

Sideways motion like this destroys most investors.

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

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

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

Of three things we can be sure.

First, The US dollar will fall more…much more.

Second, there will be confusion. Many…in fact most uninformed investors will lose…a lot.

Third there will be inflation…worldwide due to the excessive spending in the current global financial bailout.

Smart investors who know how to spot value in multi currency portfolios at some of the world’s safest banks have already earned 57%…120% …263% so even with the doom and gloom, they are still ahead.

More important these same investors have learned how to survive through turmoil.

My name is Gary Scott. I have been writing and publishing information about the falling greenback and how to earn from it though international investing for over forty years (since May 1968 to be exact).

Fortunately I stumbled across multi currency investing at an early stage and wrote a book about this clear back in the 1970s when the US dollar was first beginning to erode.

Since that time my books and reports have helped hundreds of thousands of investors find hot areas of value in every decade.

In the 1970s we helped our readers  find investments in gold & silver as well as investments  in the currencies of Japan, Germany, Switzerland, England, Australia and Hong Kong.

In the 1980s, the Tigers, Taiwan, Singapore Malaysia and South Korea, & Turkey were the places where our readers gained value.

The 1990s saw South America (which led me to Ecuador) as the place to invest.

The early 2000s offered great value in China, India and Eastern Europe.

We have helped readers find good value real estate throughout this time, first in Hong Kong, then London, Switzerland,  Isle of Man, Dominican Republic and now Ecuador as well as in Small Town USA.

We have also helped readers bet against the US dollar throughout these decades which as the chart above shows has worked well.

Finally in the early 200os we began helping readers find good value green investments.

I would like to offer you a valuable real time emailed course that teaches how to invest in multi currency portfolios plus how to sometimes use leverage in these portfolios to create extra profits.

Sleepy Safe Portfolios Can Earn Over 100% Per Year

Multi currency investing does not require any fast trading techniques.  Multi currency portfolios are normally slow and sleepy investments…not currency contracts or futures speculations.  Most multi currency positions are aimed with a five year horizon…pretty sleepy compared to people who trade currencies (an entirely different and far riskier technique).  For most of us, slow and sleepy means SAFE!

Yet multi currency portfolios can be really profitable as well.

How sleepy and how safe?

Let’s look first at sleepy.

In 2006 we created an Asian multi currency portfolio consisting of just five award winning mutual funds.

We did not touch the entire portfolio for an entire year. Then after one year we made just five changes…dropping two mutual funds and adding three other mutual funds. Then we did not make another single change. That’s pretty sleepy, choosing a handful of mutual funds and making only five changes in two years.

How safe?

The portfolio was chosen with the help of one of the world’s safest banks and the mutual funds were held at that bank at all times.

Okay. Here is the big question. How profitable?

In the first year (2006) this portfolio rose 114.16%. Then we made the five changes mentioned (two funds dropped and three added). In 2007 this portfolio rose 122.62%. 2008 was a disaster year which we will look at in a moment.  But when your portfolio is over 200% in two years, it takes a lot of disaster to lose.

Suppose we get more specific.

That safe bank is a Danish bank. That’s good because in recent years Denmark has been rated by Standard & Poor’s as one of the safest country in the world in which to bank

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

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

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

Let’s address this issue of safety in more detail. Normally this is a pretty moot point. Right now everyone is concerned. Is a bank safe or not? I like Jyske from a bank safety point of view because there are three bank safety points, from the top down.

Bank Safety Point #1: A recent Yahoo Canada article shows a survey by the World Economic Forum listed five safest countries in which to bank.

Canada
Sweden
Luxembourg
Australia
Denmark

So Denmark is a safe place to bank. Now let’s look at Jyske Bank’s safety rating.

Bank Safety Point #2: Jyske Bank is Denmark’s second largest bank.
On October 10 2008, Moody’s affirmed Jyske Bank’s long-term Aa2 rating stable rating. This decision came despite the deteriorated economic prospects in Denmark, particularly in respect of the property market.

Bank Safety Point #3: Also on Friday 10 October 2008, the Danish Parliament passed a bill that secured all deposits and unsecured claims against losses in Danish financial institutions.
The rating of the Kingdom of Denmark is Aaa/AAA with Moody’s and Standard & Poor’s respectively.

That’s safe!

I happen to know Jyske Bank because I began using them (as my bank) over 20 years ago. They are one of the few banks that offers a special multi currency portfolio service for investors from almost anywhere in the world.

I was one of the first writers and publishers to begin writing about multi currency investing. Jyske bank was one of the first banks to offer a multi currency portfolio service…and they were my bank.

Not surprising we got together and have created a strategic alliance that can help you learn how to create multi currency portfolios that suit you.

My multi currency course helps readers learn how to find good value and develop multi currency portfolios that suit their specific circumstances.

Before I explain how you can use this course, let’s look at both the up and down side of these high performing portfolios?

The course provides two levels of education. Part one gives readers an extensive beginner’s guide to developing multi currency portfolios.

Part two is unusual and neat.  Part two educates in real time. We create multi currency portfolios and track them real time.  The education comes from dissecting and discussing the portfolio results.  This is a totally novel way to learn…real time from real portfolios created by some of the best investment managers in the world as these portfolios rise or fall in the market place…in the here and now.

Jyske Bank assists by providing all the portfolio details.   Our symbiotic relationship allows me to combine my experience with this bank’s incredible knowledge, real time capability and expertise so course subscribers can learn in a most practical way from some of the greatest multi currency experts in the world.

Here is our educational performance over the past few years.

We created five portfolios for educational purposes on November 1, 2005. One of the five multi currency portfolios was the Asian Emerging Multi Currency Portfolio. The portfolio started with a $100,000 investment and a $200,000 loan in Japanese yen (more on the loans in a moment).

This gave us $300,000 to invest in this portfolio.

Amount

Currency

Investment

75,000

Rupee

Jyske Invest Indian Equity Mutual Fund

75,000

Yuan

Jyske Invest Chinese Equity Mutual Fund

75,000

Yen

Jyske Invest Japanese Equity Mutual Fund

75,000

Multiple

Jyske Invest Emerging Market Bond Fund

Investments Total Value 300,000.00

Invested $100,000

Loan $200,000 100.00% JPY at 1.63%

Loan cost for one year $3,260.

This portfolio diversified into bonds and equities throughout Asia ..very multi currency.

Chinese yuan, Indian rupee, Japanese yen and more.

Twelve months later the portfolio was worth $417,420. Paying off the loan cost $203,260 leaving $214,160 or $114,160 (114.16% profit) on the $100,000 originally invested.

On November 1, 2006 we made the five changes mentioned above. We dropped the Japanese equities and emerging market bond mutual funds and added an Eastern European, Far Eastern and Turkey equity mutual funds. This is how the rearranged portfolio stood.

Amount

Currency

Investment

75,000

Rupee

Jyske Invest Indian Equity Mutual Fund

75,000

Yuan

Jyske Invest Chinese Equity Mutual Fund

75,000

EUR

Jyske Invest Eastern European Equities

50,000

Asian

Jyske Invest Far Eastern Equities

25,000

Lira

Jyske Invest Turkish Equities

Investments Total Value 300,000.00

Invested $100,000

Loan $200,000 100.00% Czech Koruna at 3.875%

Loan cost for one year $7,750.

As promised this portfolio only had five changes. We swapped the Japanese equity fund for a Eastern European equity fund and dropped the bond fund replacing it with a Far Eastern and Turkey equity fund.

May I, at this point, interject a note about Jyske Invest fund managers. They are a Danish firm and are the investment management affiliate of Jyske Bank. This rock solid organization uses a good value system have been rated #1 by Morningstar. They use this value system to select shares in their mutual funds and we place these funds in our multi currency portfolios because they are strictly regulated by the Danish government and have such an excellent record…because they focus on finding value, not market timing.

So how did this new updated portfolio do? From November 1, 2006 to October 31, 2007 the fund rose in value from $300,000 to $430,370. The loan payoff of $207,750 leaves a profit of $222,620 or a rise of 122.62%.

There you have it, a safe sleepy portfolio created at and held in one of the world’s safest banks. With only three trades in two years the performance has been up 114.16% in year one and up 122.62% in year two.

I am sure that when looking at performance like that you are thinking “how did the other portfolios do?” Good question and your suspicions are correct…some of the other portfolios did not rise this much.

Yet believe it or not some portfolios did even better.

For example the 2007 Green Portfolio consisted of six shares and rose 266.30%!

Here is the exact performance of all five portfolios for the last two years.

2006 Portfolio

US Dollar Long

9.04%

US Dollar Short

10.43%

US Dollar Hedge

11.46%

Emerging Market

42.93%

Asia Emerging Market

114.16%

2007 Portfolios

Dollar Neutral

38.67%

Dollar Short

48.19%

Swiss Samba

53.32%

Asia Emerging Market

122.62%

Green

266.30%

You can imagine with performance like this attracted quite a bit of attention…and it did.  However these high returns are not the important benefit you gain with our multi currency course.

Our course does not recommend nor manage portfolios.  We did not suggest that any single reader invest in any of these portfolios. The portfolios are educational and designed to help readers work with their own investment manager to create their own multi currency portfolio that suits their own special, individual needs.

Our multi currency investment course helps readers learn how to manage their manager… nothing more.

Yet this is incredibly valuable because Jyske Bank can provide a stable and safe institution for those who wish to employ a multi currency strategy.

The course helps guide readers so they can direct any investment adviser or investment manager who understands how to invest in more than one currency.

The course also helps you manage risk. The incredible portfolio performance above was achieved because the portfolios were leveraged using a tactic we call a multi currency sandwich. Investors borrow low and invest in yielding or growth portfolios. The portfolios used loans in Japanese yen and Swiss francs to magnify profits in good times.

The course teaches how these loans can magnify losses in bad times as well.

For example look at the performance of the leveraged portfolios we created to study from November 2007 through September 2008.

2008 Portfolios

Infrastructure Portfolio

-112%

Blue Chip Portfolio

-79%

Danish Health Portfolio

-92%

Asia Emerging Market

-73%

Green

-56%

Leverage in 2008 caused the portfolios to lose badly…in one instance the total portfolio was lost!

The multi currency course is useful because it helps investors not to expect rising markets all the time.

The power of studying markets real time, as they unfold, wards off false expectations.

The course helps subscribers learn how to look ahead and act rather that react (after the fact when it is too late).

The sad fact is…we all have to become multi currency investors.  Trusting your fate to any one currency now can destroy your purchasing power.    Every investor needs to know what to do!

The course helps spot when to leverage good times and when to retract for the bad.  he idea is to cash in when the going is good and then withdraw.

For example in early August 2007…well before the market crash….our study of the market began to show increased risk.  Our first warning lesson said:  “We have enjoyed two years of enormous growth.  Periods of high growth are normally followed by periods of low growth.”

August 17, 2007 a lesson said: “The numbers are close enough that we could be entering the fourth sub cycle down (similar to 1976 to 1978). If so expect a sustained drop in markets for two to three years.”

On September 21, 2007, a lesson said: “equity markets dropped again violently last month. Now these markets have recovered again. Yet this may be a last gasp party.”

An October 14, 2007 lesson stated:  “We never know for sure when an upwards cycle will stall. Fundamentals look good for a bright 2008 in emerging and equity markets, but this can change quickly so to give our readers a better perspective, this year we are reducing leverage and adding a sixth portfolio with no leverage to study”.

The October 15, 2007 lesson reviewed how leveraged investments rise and fell faster than investments without leverage.

The lesson on Oct 26, 2007  saved many investors as it was entitled Leveraged Investments Gone.  Just before markets started to head south this lesson warned: “I have had only about 10% of my portfolio leveraged. Compare this to 200% for the Green Portfolio (which is up 265% this year). Now I have none.

So a lot of my portfolio investments are basically in a multi currency portfolio of bonds…mostly in pounds, Swedish and Danish kroner. The equities I hold are mainly in Europe and I do not leverage equities…especially after markets have risen so much. Periods of high returns are normally followed by periods of low returns. These facts, plus my belief that numerous economic woes are rising and my recollection of Oct 1987 leave me wanting to reduce risk in my equity portfolio. So now I have eliminated all my leverage.”

The next lesson warned again: “Okay it’s time to turn the burner down.”

A November 8, 2007 Black Friday lesson reviewed  all the warnings above again and more.

The course also helps readers find ways to spot unusual distortions that profit even in bad times.

For example  lessons  on April 18 and April 27 2009 looked at the benefit of investing in Brazilian currency bonds.

This lesson led to a quick profit.

Here is an excerpt from our June 12, 2009 lesson:

Based on these ideas and those presented in the April 18 and April 27 lessons we looked at why Brazilian bonds made good sense in the LONG TERM.

Sometimes we get lucky though in the short term… as we have now.

Brazilian bonds have made a sudden jump up!   Those who have invested in them have made as much as 50% (in US dollar terms) this year.

Yet the distortion we’ll review below shows how there is even more dollar denominated profit potential ahead.

Last week the Brazilian central bank lowered key interest rates to 9.25%.  This will likely send the price of  Brazilian real denominated bonds up.

The central bank has stated that there could be more rate cuts, but they will be smaller.

This is positive news plus Brazilian inflation has declined to 5.2% from 5.53% in April 2009.

When you take into account the high interest of the real, the rise in value of bonds and the rise of the real you can see the potential.

Brazilian real bonds have risen nearly 30% since the beginning of the year…  in terms of Euro!

This is where there is another huge distortion.  The real has not risen anywhere near this much versus the dollar.

The charts from finance.yahoo.com below show the distortion.

In the last three months the US dollar has dropped from $1 = 2.30 BRL to $1 = $1.97 (- 14.3%) versus the Brazilian real as this chart shows.

brazil-distortion

In the last three months the euro has dropped from 1 euro = 3.05BRL to 1 euro = 2.60 BRL (-13.5%).   This correlation of the euro and dollar would seem normal except…

brazil-distortion

as the chart below shows, the euro has risen from $1 euro = $1.28 to 1 euro =$1.40 a 9.27% rise versus the US dollar.

brazil-distortion

In addition the Brazilian central bank has had to intervene several times in recent months to avoid the Brazilian real being too strong against the euro.

Traditionally the real has had a strong correlation with the dollar but the recent weakening of the buck versus the dollar has not spilled over into the Brazilian real.

In other words. The real is up against the euro almost 10% more than against the dollar.  This is called a cross rate distortion and means that one of two things is likely to happen.  The dollar will rise versus the euro or  the dollar will fall versus the Brazilian real.

Given the fundamental US fiscal weaknesses that could push the dollar down, I am bullish on the real rising more versus the dollar and this makes me bullish about Brazilian real denominated bonds.

Always remember the basic rule though is to never speculate more than you can afford to lose.   A US dollar – Brazilian real sandwich is worth discussing with your portfolio manager or adviser now but could creates losses as well as profits.

I have not leveraged my Brazilian bond investment. Based on this data I instructed JGAM to increase me Brazilian bond holdings.

If you are using Jyske Bank, and are a non US citizen or resident, or a US citizen living abroad, you can simply have the bank purchase Brazilian bonds and lend you the funds (within the bank’s loan to asset restrictions).   Non US citizens contact Rene Mathys for more details at mathys@jbpb.dk

US citizens should contact Thomas Fischer at fischer@jgam.com

If you are a US citizen resident in the US and have an advisory account with JGAM, they may not be able to buy Brazilian bonds for you.  They could  buy the US traded ETF “The WisdomTree Dreyfus Brazilian Real Fund.” (BZF)

These three lessons (April and June 2009) helped many readers cash in on an unusual value!

I would like to invite you to enroll in our multi currency investment course and to also receive a nine lesson report that covers basics and fundamentals of  multi currency investing.

This nine lesson report has been read by tens of thousands of investors over the years.   This report sells on its own as a survivor’s hand guide to currency turmoil for $79.  I’ll email it to you free when you enroll in our online course.

The course is emailed to you regularly and studies stock, bond and currency markets worldwide, real time, as they unfold.

I believe, from the response of tens of thousands of readers over the last 20 years, that you will gain enormously from the course.

Our course helps you learn  why and where to invest and learn why and how currencies and interest rates rise and or fall.

The initial nine lesson report I’ll email you free also shows how to calculate and manage leveraged risk and how to decide if and when to leverage or not.

Is this course for you?

Everyone needs to know how to have multi currency diversification. But in case this course does not help you, we provide a 30 day “completely satisfied or your money back” guarantee that we have offered our hundreds of thousands of readers for more than 20 years.

Our Multi Currency Educational Service is a mere $175 for a very long and educational year! Won’t you share this exciting world of wealth accumulation with us and our readers around the world? Multi Currency Educational Service

Gary Scott

Multi Currency Portfolios Course. Subscribe

Or enjoy this multi currency course for a year free!  Here is how you can save $175.

We enhance our emailed courses with regular international investing and business seminars that I conduct in coordination with Jyske Bank and Jyske Global Asset Management.

Here I am at our last seminar in Naples Florida (may 2009).

multi-currency-debt

The speakers at the Naples seminar discussed prospects for the economic future.  Left to right: Samuel Rachlin,  Rich Checkan, Steve Blumenthal, Joe Cox, John Mauldin, Gary Scott, Lars Stouge. Thomas Fischer Moderating.

The 115 delegates reported that they really gained from listening to what we had to say and…

brazilian-bond-distortion

talking among themselves during the coffee brakes and at meals.

brazilian-bond-distortion

One benefit of these seminars is talking to an overseas banker.  Here I am at the Naples  seminar  with my Jyske account executive Anders Nielsen.

brazilian-bond-distortion

Thomas Fischer of Jyske Global Asset Management will join us for the July North Carolina seminar.

I invite you to attend this July course. If you enroll between now and July 1st, I’ll also enroll you in  our emailed multi currency course free. You save $175.

Enroll in our July 24-26 International Investing and Business Made EZ course here

Here is Thomas speaking to our delegates at a previous course.

brazilian-bond-distortion

Enroll in our emailed Multi Currency Portfolios Course for $175  here.  Subscribe

Save $175!  Receive the emailed course free when you Enroll in our July 24-26 International Investing and Business Made EZ course here

Here is what a few others from around the world have said about our services and reports on international investing.

“ Gary , I am a long time subscriber in various media, and while cleaning out my files today I found some old ‘Gary A. Scotts World Reports’. In particular, the April 1988 issue provided the info that made me over a million dollars. Just wanted to say a belated ‘thank you’ and please continue the excellent work. Warm regards,”

From an Unknown Reader

“Dear Gary, I would like to give thanks to you for introducing me to Jyske Bank two years ago.

“I have been a long-time client of Merrill Lynch, but am in the process of re-evaluating my relationship with the largest brokerage company in the world. My problem is that when I compare Merrill to Jyske, Jyske outshines Merrill (or other major U.S. brokerage firms) in most categories as follows:

“1) Even though Jyske is much smaller, it has a much more global perspective which is critical in an evermore global investment environment.

“2) In order to maximize their own individual revenue, the brokers at Merrill prefer to outsource the day-to-day management of their accounts to various fund managers and hence, ‘manage the managers’. In contrast, I can call my Account Manager at Jyske and he can discuss every aspect of my account in detail with me.

“3) I attribute this difference in #2 to the fact that Jyske’s employees are not compensation driven, but instead are focused on satisfying their customers. That is why Jyske’s clients stay with the Bank on average for 12 years, which is phenomenal by Wall Street standards.

“4) Jyske’s security is far more stringent than that of Merrill’s. In addition to the standard account code and password, to pass through Jyske’s security one has to enter a Key Card number and also a randomly-generated 4-digit number from said Key Card.

“5) Having an account offshore allows me to sleep better given the anxious times we live in. Since I report the existence of the account and pay all taxes due, I am fully compliant with the law. However, such an account gives me and my family a ‘financial life boat’ should events in our own country ever get out of hand.

“As Dorothy Parker once said, ‘You can lead a horse to water, but you can’t make them THINK’. Jyske is a thinking person’s bank. My only complaint is the time zone difference since I live in California . However, since I am an early riser and my Account Manager is very responsive to my emails, this problem is very small relative to the HUGE benefits.

“Again, many thanks for introducing me to Jyske Bank. Given the ‘dumbing down’ that occurs in the popular media today, your ezine and its recommendations are ever more important. Please continue your good work to enlighten your readership.

“Warm regards,”

C.M. CALIFORNIA Businessman

“I was so overwhelmed with information I received I had to spend several days reading, sorting and filing it! I have decided to move my modest investment capital overseas.”

B.W. MONTREAL CANADA Professor

“Send me your report on safe banks lending at 7% for redeposit at 13% or more.” B.V. ADDIS ABADA ETHIOPIA Economic Commission United Nations

“A number of new and significant contacts were made. It would be extremely helpful if you could supply us with WORLD REPORTS.” I.M. TORONTO , CANADA Banker

“You are as good as your word which is rare these days. I look forward to attending one of your seminars.” C.K. GENEVA , SWITZERLAND Banker

“In spite of my marketing experience, your information really got me going!” M. C. LONDON, ENGLAND Marketing Consultant

“Thanks for the three reports. They are very interesting and should find many readers here in Japan .” M.A. Tokyo , JAPAN Computer Programmer

“I would like to say how much I enjoyed the information I received.” A.B. Providenciales TURKS & CAICOS Accountant

“First let me say how much we enjoyed the investment seminar.” W.J. SAUDI ARABIA Oil Engineer

“Once again thanks for all the great information.” G.K. PERTH , AUSTRALIA Insurance Executive

“Your letter of November 8th warned me to beware of the market just a week before the 120 point crash on November 15th!” T.G. N. CAROLINA Pilot”

Won’t you join us as we learn from our Multi Currency Educational Service? Just a mere $175 for a full 12 months of valuable, wealth building education.

Enroll in our emailed Multi Currency Portfolios Course for $175  here.  Subscribe

Save $175!  Receive the emailed course free when you Enroll in our July 24-26 International Investing and Business Made EZ course here

Global Investing and Ecuador


My global investing and business began 41 years ago May 2, 1968 and eventually led me to Ecuador.

My background as son of a zoo keeper did not leave me prepared.

ecuador-global-investing

Here is a newspaper clipping of my sister Sandra and me feeding a baby lion we kept at home… one of many lions and tigers we raised.

Let me share 41 years of multi currency investing and a couple of important facts I learned that may help you… including what’s happening with the swine flu in Ecuador.

I arrived in Hong Kong in the night, the tropical air so soft it was a velvet mist.   Thick evening scents in the fragrant harbor and mellow insects purrings in rhythm with the cacophony of the great city!  What a an exotic adventure.

Kai Tak was Hong Kong’s airport then and being American born and bred, I knew nothing about investing aboard.

That was my first airplane trip, first time out of Oregon. Portland to Vancouver, Tokyo to Hong Kong.  I melted in my heavy woolen blazer, was weary and afraid but excited too. An incredible global investing journey had begun… and continues to this day.

Here I was, 21 years old.

passport_25_07_2007_4.jpg

Here is the first stamp in that first passport. That stamp you might say was my first international investment.

passport2_25_07_2007_3.jpg

That first stamp makes a point by the way about how to enter and initially work or invest in a country.  That first stamp was issued May 2, 1968 and allowed me to stay in Hong Kong until June 2, 1968.

I worked in Hong Kong for quite some time on tourist stamps… coming in for a month at a time.   I was developing sales teams in Japan, Korea, Taiwan, Thailand, Indonesia, Indonesia, Singapore and the Philippines at the same time so a month was plenty of time before I exited.

ecuador-global-investing

Here is one of my first sales teams… this one in Hong Kong led by John So Kwok Kee (far left – you can guess which one I am).

I built teams from the north in Japan down through Thailand.  One of the salesmen we worked with in Thailand, Brian Tracy, returned later to Canada and has had great success in the sales education field.

Starting a business, investigation or residence with a tourist visa is a pretty good idea. This is usually the easiest, most efficient, practical way to begin so you can be sure what you are doing and how you’ll develop a more permanent stay if you want one.  In many cases… such as mine… a permanent tourist system is simply the easiest and best.

I began my business in Hong Kong this way and for years I also lived and worked in England on tourist stamps before obtaining my permanent residence there.

A reader recently sent me this note about Ecuador tourist visas.

“Gary, When I was staying at the Hotel, someone mentioned that you do not
have a residential visa for Ecuador.  Is this correct?  How do you
spend as much time in the country as you do?”

Here is my rely:

“I spend less than 6 months a year in Ecuador.

“We have heard from others who come stay for 90 days, leave for just a day or two (especially just over the border in Peru or Colombia)  and come right back that there are difficulties.

“Our experience is that every time we come to Ecuador we are given a 90
day visa.  However we do not stress this system. For example we may stay 70 days and then be away for weeks or even a month or so.  Then return for 20 days or so.. then leave for another month etc.   The immigration officers look carefully at the total number of days by the end of the year and to help them, I keep a list of each day we have arrived and departed and the page number in our passport… so they can efficiently see we have not been in more than 180 days the maximum allowed on a T-3 tourist visa).

Be careful not to overstay. One reader reported that having done so he was denied entrance upon his return and were not allowed to return to Ecuador for one year.

We have a full report on Ecuador visas and an immigration attorney who helps our Ecuador Living subscribers.

I am also preparing a report for Ecuador Living subscribers to answer this question from a reader yesterday.

“Hi Gary, Wonderful timing, we had tickets to fly from Guadalajara to Quito yesterday, but were stymied by the fact that Ecuador (and Peru) are refusing passengers from Mexico.  We understand Ecuador’s borders  will be closed for a month to non-residents flying in from Mexico.

We had thought about flying back to the States and then flying to Ecuador, but an electronic scan of our passports would show we’d been in Mexico and we’re not sure what would happen.  Any insights?   Thanks!

You can obtain these reports and answers as an Ecuador Living subscriber. Learn how to subscribe to Ecuador Living here.

Back to Hong Kong.  I began there selling US mutual funds.

When arriving there 41 years ago there is no way I could have known how exciting the next decades would be, how much information, facts, figures, ideas and insights on how to invest globally would be gained. Had I known the mistakes to be made I would probably have run!

Then I moved east again to England and Europe… trying many things.

Thankfully all the trials, tortures and errors were mitigated by much fun and an earnest endeavor to live right and learn.

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Here is a newspaper clipping of me  with a business partner in my London office on Artillery Row selling square inches of Graceland… not really a very good idea.

Later I imported Rolls Royces and Bentleys from England to the US… a better idea.

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One goal at this site is to share basics of global investing and living an international life learned over these 41 years. Global investing has changed so much during this time and is changing even faster now.  I am continually forced to rearrange my thinking strategy and tactics at a faster pace.

We offered health courses at our North Carolina farm. Here I am with our son, Jake, with one tactic we taught… a morning dip in a cold creek after exercise… yes that is snow on the banks and no… this not surprisingly did not sell very well either.

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Our food as medicine courses taught by Merri in her teaching kitchen at the farm had better attendance!

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For almost 15 years now we have been conducting courses in Ecuador. Here I am this year in the meeting room at the Cotacachi museum next to Meson de las Flores on an Ecuador export tour.

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This continual evolution has helped Merri and me, our readers and our income continually grow… through good times and bad.

Yesterday April 2009 for example ended with anoter record month for our internet sales.  Our 2009 sales (April month on month) were up 48.01% over April 2008, which in turn were up 24.04% over April 2007 sales.

Our sales in the first four months of 2009 were up 81.75% over Jan through April 2008 which was up 26.20% over 2007.  Learn how to develop an internet business that can grow like this here.

The reason we have survived and progressed amidst this never ending update is that the little stuff shifts and evolves, but the fundamentals remain immutable.

Investing globally is not a panacea, but expanded horizons are. Life is a trip and we have an entire globe to enjoy the ride.

Two years ago on May 2, 2007, I wrote:

History suggests that this is a time when chances are increased for panic and sudden drops in investment markets. Investors who have proven themselves nervous short term thinkers are highly leveraged, in thin, over purchased markets that are easily sinkable boats treading the dangerous waters of May though October when tradition says the currents will most likely be treacherous and surrounded with lots of storms.

Now, that this risk has proven true, history also suggests that we have a once in a life time opportunity.

The way to cash in on this incredible opportunity is the same way I suggested avoiding the collapse two years ago. I wrote then: “One way to get good international investments is to take a long term, expansive international view.”

My first trip abroad 41 years ago was significant because 1968 was the beginning of a new era for world stock markets. When I arrived in Hong Kong the world of investing was dominated by Wall Street. That was about to end. 1968 was the year when the Hong Kong Stock Market began to explode upwards along with Tokyo’s market. What a ride!

The Heng Seng Index was then 100 and rose to 18,000. Anyone who steadily committed money to this market then made a fortune.

I can sum up my investment basic investing and advice in seven sentences.

#1: 1970s. Invest in real estate, gold, silver Japan, Germany, Switzerland and Hong Kong.

#2: 1980s. Invest in real estate, the Tigers, Japan, Taiwan, Singapore Malaysia and South Korea as well.

#3: 1990s. Invest in real estate South America (which led me to Ecuador).

#4: 2000s. Invest real estate, China, India and emerging markets including Ecuador real estate.

#5: Always have an expansive view.

#6: Use stop losses during peaks.

#7: Have an international investment view. Never overextend. Don’t trade too much, just hang on.

This philosophy has reaped millions for Merri and me. Had we been more expansive, we would have an extra $20 million or so.  However our conservative approach to business and investing also protected us during the recent melt down of 2007 and 2008.

This may be time to begin taking advantage of the recovery. Panic is subsiding but values are still high. The huge excesses of the US and other government’s will at some stage begin to seriously erode the purchasing power of currencies.

I remain highly diversified from a currency point of view.  Here is my current currency breakdown in my liquid portfolio that represents 43% of my total portfolio.

An excerpt from a recent Multicurrencyinvesting.com lesson explains why when I wrote about the currency distribution of investments:

Here is my currency distribution:

Danish kroner    24%
Euro                     24%
British Pound      8%
US Dollar            12%
Canadian Dollar 3%
Norway kroner   4%
NZ Dollar             3%
Sweden kroner    7%
Brazil real             3%
Hungary Forint   6%
Turkey Try            6%

With more than a third of my liquid position in Danish, Swedish and Norwegian kroner, my Scandinavian  position is seriously over weighted in terms of global market size.

One reason is because these are such small countries located on the sea.  This means that their histories are composed of  travel and trade.

A nation’s heritage reflects in the value of its currency strength. This fact helped me answer this question from a reader.

“Gary, Will  future strength in DKK be bad for equities denominated in that currency?”

Here is my reply.

Most of the Danish companies you would buy are global companies.

Because Denmark is such a small market any large Danish company is doing most of its business out of Denmark  so a lot of their success depends on the type of business business and where the company actually manufactures and sells its products.

Plus look at the margins built into the product.

One benefit in Scandinavia is their very highly educated population. A recent Time magazine article shows that Finland (not Scandinavian but Baltic and Finland’s currency is the euro – otherwise I would have Finmark in my portfolio as well) ranked number one for educational performance of 15 year olds in math. Denmark was number 10, Sweden number 15 and Norway number 23… all ahead of the US (number 25).

Finland was number one for reading performance of 15 years olds as well.  Sweden number seven, Norway number 10 and Denmark number 16. The US was number 15.

This means that the products produced in these nations will tend to be high value.

For example, Novo Norsk makes insulin.  I suspect that the margins are substantially high.

Ditto for novozymes that makes enztymes for environmental purification.  These are firms where there is likely to be a great deal of value added into their product.

Vestas, makes wind turbines. and may be more affected by a strong kroner if they do a lot of manufacturing in Denmark but are having and sales in the US and especially if their competitors manufacture in the US or other countries where the currency is weak.

I am updating the value of major and emerging markets now at multicurrencyinvesting.com and will be revaluing our green and Danish portfolios in upcoming lessons.  You can subscribe to our Multi Currency Portfolios Course here.

I have increased my Ecuador real estate to 22% of my total property.  The balance is in US property and I am looking to add more US property now in Florida and or Savannah.

If you have real estate in central Florida or Savannah that you would like to swap for real estate in Ecuador… let me know.

I have held a high cash position for over a year but now agree with Warren Buffet who recently wrote about business and opportunity:

Clinging to cash equivalents or long-term government bonds at present yields is almost certainly a terrible policy if continued for long. Holders of these instruments, of course, have felt increasingly comfortable – in fact, almost smug – in following this policy as financial turmoil has mounted. They regard their judgment confirmed when they hear commentators proclaim “cash is king,” even though that wonderful cash is earning close to nothing and will surely find its purchasing power eroded over time.

Now is the time to convert cash into investments that will appreciate with the loss of cash’s loss of purchasing power… stocks… commodities… real estate or your own business.

This leaves all of us with a lot to do after 41 years of a global life.

I feel healthier and more energetic then 41 years ago.   Maybe I am not wiser… but I am more experienced and seem in a better position then when I took that first trip.

Merri and I look forward to the next 41 years… and we look forward to sharing them with you!

Gary

This is the schedule of Gary our 2009 Ecuador information tours, courses and seminars.

May 16-17 Ecuador Coastal Tour

May 20-21 Imbabura Real Estate Tour

May 22-24. Ecuador Amazon Herbal Tour

June 12-14 Shamanic Mingo Tour

June 16-17 Imbabura Real Estate Tour

June 18-21 Ecuador Coastal Real Estate Tour

July 4-8  Ecuador Export Tour

July 8-9 Imbabura Real Estate Tour

July 10-13 Ecuador Coastal Real Estate Tour

July 24-26 IBEZ North Carolina

Sept. 17-21 Ecuador Spanish Course

Sept. 23-24 Imbabura Real Estate Tour

Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 9-11 IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

Nov. 6-8 IBEZ Ecuador

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

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

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


The American Dream Goes South at Florida Investment Seminar


I’ll focus on how the American dream is heading south at JGAM’s multi currency seminar in Florida this May.

If looked at one way… the American dream is dead. Let’s ramble through economic history for a moment to see why.

In the early 1980s the US had a challenge… a severe recession from July 1981 to November 1982.  Inflation was high so the Fed  slowed the rate of growth of the money supply and raised interest rates. The federal funds rate rose to 20% by June 1981. The prime interest rate, at the time a highly important economic measure, eventually reached 21.5% in June 1982. Businesses went broke by the drove… 50 percent over the previous year.  Especially hard hit were farmers and real estate developers.

The recession was the most serious recession since the Great Depression.

This was tough but inflation eased and the economy rebounded.  Growth took off again… real growth without bad inflation because the real estate overhang and subsequent bankruptcy of the Savings & Loan industry was dealt with by the Resolution Trust Corporation.

RTC liquidated via auction and a massive sell off to private business, the real estate that had been assets of savings and loan associations that were insolvent.

The US government had the sense then not to try and control these assets.  Entrepreneurs bought the assets for pennies on the dollar and turned the property into viable deals in ways that no government agency ever could.

Japan then had a serious recession and the same opportunity.  There was a real estate and stock bubble in Japan in the 1980s.   Then in 1989 there was a massive withdrawal of confidence. Investment collapsed, causing the Nikkei index to fall more than 60 percent.

The Japanese government however decided that it could provide a fix. the Japanese felt they could not let big Japanese businesses go broke.  Between 1992 and 1995, Japan tried six spending programs totaling 65.5 trillion yen. They cut  taxes in 1994. In 1998 they cut taxes again and launched stimulus packages worth more than 40 trillion yen.,  A year later… another stimulus program. In 2000 11 trillion yen more was spent to stimulate the economy.

Over a decade the Japanese government provided 10 stimulus packages worth more than a 100 trillion yen.   The main result was to ruin the Japanese government’s credit with public debt that exceeds 100 percent of GDP. This is the highest percent of debt of all major nations.

Any other results?  Here is evidence… the main Japanese stock index the Nikkei 225 from 1989 till 2009.  Japanese society is indebted for life and the stock exchange has fallen from over 35,000 to  7,600 in 20 years.

Wow that really worked well… so

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now the US government has decided to do the same thing.

Last week the government  offered another $30 billion in funds to A.I.G. insurance.  This is the fourth round of aid to the American International Group. The government already owns nearly 80 percent of the insurer’s holding company. How much more can they buy?

This sounds like a good investment since the insurance giant was about to report a $62 billion loss after the government has already given a $60 billion loan, a $40 billion purchase of preferred shares and purchased $50 billion of the company’s toxic assets.

Behind this, the government has invested $50 billion in Citigroup… $45 billion in Bank of America.  The Us auto bailout could cost another 100 billion. More on that in a later message.

This is all taking place as the US economy spirals down at an accelerated pace.

Yet the current administration is basing its spending on calculations that suggest vigorous rates of economic growth in years to come.

They have suggested this economic growth will come in 2010.

I wonder?

There seems to  a disconnect between the Federal projections and fiscal reality.   Current conditions are not yet at the level of the 1980s, when unemployment exceeded 10 percent, but they could be soon.

Moody’s chief economist now places the odds of “a mild depression” at 25 percent. In that view, the unemployment rate would reach 10.5 percent by the end of 2011 — up from 7.6 percent at the end of January — average home prices would fall 20 percent on top of the 27 percent they have plunged already, and losses in the financial system would more than triple, to $3.7 trillion.

Yet President Obama calls this a “once in a generation” opportunity and proposed a 10-year budget that overhauls health care, arrests global warming and expands the federal role in education.

How to pay for it?   Tax more corporations and the wealthiest taxpayers.

Wrong!  Higher tax will simply kill business or drive it abroad.  What a  good idea to chase away the last of the success.

The President said  he would shrink annual deficits.  His explanation is that he will increase revenue from rich individuals and polluting industries, reduce war costs and assume a good rate of economic growth by 2010.

The rich will stop working or leave the US.  The polluters will move to Mexico or China or wherever.   The high rate of economic growth will not appear.  Stopping the war will help… but not enough.

Technology means that politicians can no longer ignore the global market and tax its citizens to death.

Take for example what is happening in Ecuador.  Remittances sent by  Ecuadorians who work abroad fell 22 percent in the last quarter of 2008.

$643.9 million was sent from October to December 2008. This is $181.7 million less than in Oct.to Dec.2007.

A similar drop was experienced in the third quarter of 2008 and is caused by the global financial crisis and especially the economic slowdown in the United States, where it is estimated 1.5 million Ecuadorians live and work.

The U.S. employment rate has crashed especially in manufacturing and construction which employ a large number of Ecuadorians.

The same is true in  Spain – where 600,000 Ecuadorians live. this is the second-leading destination for Ecuadorians.

This means that there are more Ecuadorians to serve for less in Ecuador.  This forces the Ecuador cost of living down down.

So if you are an American who is about to be super taxed… where would you choose to live?  Our farm manager sent us this note recently, “We had 4 inches of snow in China Grove.”

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Would you rather live there and pay more tax or…

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enjoy open air dining as Merri and are doing here in our Cotacachi hotel courtyard with Dan Prescher and Suzan Haskins or…

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would you rather enjoy a mountain train ride as these…

multi-currency-investing-florida-course new Cotacachi residents are doing…  passing through green mountains  and blue skies.  Getting a sun burn.

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The is the train from Ibarra to Salinas Ecuador.  Would you rather be taxed extra to be in this pool or…

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be here on Ecuador’s coast with tax advantages?

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Which view will the rich prefer?  This in the US or…

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this… especially if this San Clemente Ecuador ocean view costs much, much less?

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Where would I prefer to walk with my hound?  Here in sub zero temperatures or

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here in Cotacachi Ecuador…especially if I am taxed less and the cost of living is much lower and government interference in my life is less?

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Technology and the global market gives us as individuals enormous power to live where and as we choose that politicians can no longer ignore.

The government’s attitude to increase taxes on those who work hard could turn the existing brain drain from the US into a brain torrent.

In short there are many reasons I see that suggest the economic mess will  last for years in the US,  just as it has in Japan.

Recently, Warren Buffett wrote in his company’s annual report that “the economy will be in shambles, throughout 2009, and, for that matter, probably well beyond.”

This is not the picture we expect of the American dream.  However the picture is not bad for all.  Not all Italians became poor when Rome fell.  Italy is still a great place to live.  There are still millions of Japanese who have thrived over the past 15 years of Japanese recession.  The end of the America dream does not have to be the end of your dream.

In the US we can expect the rich to get richer… the poor poorer.   We can see why from our study of Power Distance Index.  We looked at PDI, and what it is, in a recent message about JGAM’s multi currency seminar.

There is more about Power Distance Index at http://www.clearlycultural.com which says:

Hofstede’s Power Distance Index measures the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. This represents inequality (more versus less), but defined from below, not from above. It suggests that a society’s level of inequality is endorsed by the followers as much as by the leaders.

For example, Germany has a 35 on the cultural scale of Hofstede’s analysis. Compared to Arab countries where the power distance is very high (80) and Austria where it very low (11), Germany is somewhat in the middle. Germany does not have a large gap between the wealthy and the poor, but have a strong belief in equality for each citizen. Germans have the opportunity to rise in society.

On the other hand, the power distance in the United States scores a 40 on the cultural scale. The United States exhibits a more unequal distribution of wealth compared to German society. As the years go by it seems that the distance between the ‘have’ and ‘have-nots’ grows larger and larger.

The trick then is to not accept the PDI from the lower end. Let me explain.

Excerpts from 2007 article by a Stefan Bach , Giacomo Corneo  and Viktor Steiner at www.voxeu.org entitled German income inequality outlines an idea.  The article says:

Paul Krugman frequently mentions that America’s super rich make the 19th Century wealthy look poor. “We know what John D. Rockefeller, the richest man in Gilded Age America, made in 1894 … $1.25 million, almost 7,000 times the average per capita income in the United States at the time.” Krugman wrote. ”But that makes him a mere piker by modern standards … James Simons, a hedge fund manager, took home $1.7 billion, more than 38,000 times the average income.”

Surely such extremes cannot happen on Continental Europe with its social market economics and social solidarity. The authors of Policy Insight No. 4 shows that although income inequality in Germany is a long way from reaching US proportions, the trend is in that direction. Germany rich are getting richer, and its super-rich are getting super-richer.

In other words as a society progresses, those with power get richer while the majority of  the population become poorer.

Note above that power is determined  from below, not from above. It suggests that a society’s level of inequality is endorsed by the followers as much as by the leaders.”

Power is an illusion that keeps most investors and business people depressed while a few gain from this social falsification.

The internet destroys this illusion. The web gives us all power!  Today we have as much opportunity as the rich to gain from the changes that this economic correction will bring.

This is why Merri, our webmaster and I have created a new course on how to build a web business with a webmaster.  More on this in a moment.

First what you can do as an investor or with your own business.

One answer we saw above is to live in a better lower cost environment like Ecuador.

Another answer is to be a multi currency investor. Despite America’s government spending , the dollar has been gaining, particularly against European currencies. The euro slipped to under $1.26, nearing a two-year low and down from a high of almost $1.60. This is caused as fearful investors jump into 10-year Treasury bonds… which have been shown to be terrible long term investments.   All the US government spending means that the US dollar will fall. But against what?

The euro is not a trustworthy currency now. A March 1, 2009 New York Times article by Steven Erlanger and Stephen Castle entitled “Growing Economic Crisis Threatens the Idea of One Europe” explains why.  Here is an excerpt from that article:

The leaders of the European Union gathered Sunday in Brussels in an emergency summit meeting that seemed to highlight the very worries it was designed to calm: that the world economic crisis has unleashed forces threatening to split Europe into rival camps.

With uncertain leadership and few powerful collective institutions, the European Union is struggling with the strains this crisis has inevitably produced among 27 countries with uneven levels of development.

Whether Europe can reach across constituencies to create consensus, however, has been an open, and suddenly pressing, question.

“The European Union will now have to prove whether it is just a fair-weather union or has a real joint political destiny,” said Stefan Kornelius, the foreign editor of the German newspaper Süddeutsche Zeitung. “We always said you can’t really have a currency union without a political union, and we don’t have one. There is no joint fiscal policy, no joint tax policy, no joint policy on which industries to subsidize or not. And none of the leaders is strong enough to pull the others out of the mud.”

Thomas Klau, Paris director of the European Council on Foreign Relations, an independent research and advocacy group, said, “This crisis affects the political union that backs the euro and of course the E.U. as a whole, and solidarity is at the heart of the debate.”

“All of that is in doubt if the cornerstone of the E.U. — its internal market, economic union and solidarity — is in question,” said Ronald D. Asmus, a former State Department official who runs the Brussels office of the German Marshall Fund.

If the the euro is a good currency for diversification, which currencies are?

Our multi currency course helps you learn how to diversify into safe currencies.  Our studies currently suggest that the Danish, Swedish, Norwegian kroner and Canadian dollar make sense. For example beginning in March the Swedish kroner hit a new record low. The Eastern European problems are having an adverse impact on the Swedish banks.   Also the Norwegian currency is a good technical buy.

You can join us to understand why these currencies make sense by subscribing to our on line multi currency course.

You can also join us for a currency review at JGAM’s Naples Florida investment course May 29 to 31, 2009.  This course is $499 ($750 for two) but free to those who have subscribed to our on line multi currency course.

Another way you can attend JGAM Florida seminar free is to subscribe to our course on how to have a web based business.   You can enroll in this special course for $299 and attend the JGAM course in Naples free.

Here is a special offer on this course “Tangled Web – How to Have a Web Business“.

Or join us for an upcoming course in North Carolina or Ecuador.

Gary

Future 2009 courses

May 29-31  JGAM Multi Currency investment Seminar Naples Florida

June 12-14 Shamanic Mingo Tour
June 16-17 Imbabura Real Estate Tour
June 18-21 Ecuador Coastal Real Estate Tour

July 3-6 Ecuador Import Export Expedition
July 8-9 Imbabura Real Estate Tour
July 10-13 Ecuador Coastal Real Estate Tour

July 24-26 IBEZ North Carolina

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

Oct. 9-11 IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

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

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

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

Ecuador Beach Restaurants


Ecuador beach restaurants offer wonderful variety, excellent food and really low prices.

Sunday lunch is great, so here are some of the wonderful Ecuador beach restaurants where you might find Merri and me enjoying a Sunday meal.

In Manta for a quick bite we visit the Oro Verde cafe.  The Oro Verde hotel is in the center of Manta.

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Bread and pastry, as a general rule, are not Ecuador’s best specialties. Not true at the Oro Verde!  Merri and I have lived in many countries including places with great pastry such as France, Germany, Austria, Swiaterland and Italy.

The Oro Verde has pastries as good as any we have ever enjoyed. The Sundays papers and these pastries go well together.

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Sadly the Oro Verde coffee is the terrible, machine made Nestecafe cappuccino.  I put up with it though to enjoy the croissants and especially delicious cinnamon rolls.

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For good… quickly served, fresh, no frills seafood we visit Manta’s  beach and…

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the Oh Mar restaurant.

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A great seafood meal is about $6… or for something special… like this lobster for $12.

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Moving north to Crucita… we enjoy the cafe at the top of Balsamaraqua gated community.

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Open and airy, you can spend a Sunday afternoon enjoying this incredible view.

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Further north is San Clemente where we live and stay at Vistazul.

Here restaurants range from the high quality restaurant at Palmazul…

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where a Sunday dinner can run $17… but with a view.

Right on the beach…

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for special occasions and fine dining Palmazul is the place.

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When feeling more casual we amble a couple blocks to the Submarine beach restaurant…

ecuador-beach-restuarants really on the beach.

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Where a meal is $4 to $5. You cannot beat the location.

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Here we are with our friends Bob and Barbara Humphrey…

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After a great seafood meal we stroll two blocks back to Palmazul on this beach.

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One really excellent, evening restaurant on the San Clemente beach…right next to Vistazul is Gabriel  Graziani’s  tiny beach shack restaurant.

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He serves delicious pizza and lazagna.

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in his hand made oven.

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He collects all the fresh ingredients and makes the food while you are there.

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Gabriel is the real deal when it comes to  Italian Pizza. See him preparing at  our You Tube

Further north is Bahia and there are several great places there starting with Casa Ceibo.

ecuador-beach-restuarants Elegant but pricey…by Ecuadorian standards.

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Well worth it once in awhile.

For snacks the cafe in la Piedre hotel cannot be beat…here I am with Kjetil Haugan as we overlook the Chone Estuary on a warm breezy afternoon.

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If you like value and seafood, this part of Ecuador from Manta to Bahia will serve you well.

Until next message may you enjoy your Sunday meal.

Gary

Join us in Cotacachi and on Ecuador Coast in March.

Merri, our webmaster and I have created a new course on how to build a web business with a webmaster.  Here is a special offer on this new course.

You can enroll in this special course for $299. However if you sign up for our three courses in March 2009, I will send it to you free. You save $299.

March 8-9 Imbabura Real Estate Tour

March 10-15 Ecuador Import Export Expedition

March 16-19 Ecuador Coastal Real Estate Tour

Bob Shane will be at our March courses and will be available to provide health balancing.

Get our web based course FREE if you join us in Ecuador this March.

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

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

Future 2009 courses

May 29-31  JGAM Global Asset Strategy Seminar

June 12-14 Shamanic Mingo Tour
June 16-17 Imbabura Real Estate Tour
June 18-21 Ecuador Coastal Real Estate Tour

July 3-6     Ecuador Import Export Expedition
July 8-9    Imbabura Real Estate Tour
July 10-13 Ecuador Coastal Real Estate Tour

July 24-26 IBEZ North Carolina

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

Oct. 9-11     IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

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

.

Cotacachi Mayor’s House


Recent messages looked at how Merri and I search for Cotacachi real estate.

The road paving we have been tracking is now done.

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In two directions…

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in less than two weeks.

We keep our eyes open every day and the search pays off.

Today, near Primavera II condos…

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Around the corner from Cotacachi’s Mayor’s house (which is for sale) …

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we spotted two old houses for sale.  This one is $25,000.

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and this, $36,000.

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These fixer uppers have huge lots, in the center of the village. They may be real sleepers.  We’ll see as we’ll inspect them on our Imbaburra real estate tour that begins tomorrow.

You can gain Cotacachi real estate information and Ecuador real estate contacts as an Ecuador Living subscriber. See details here.

Speaking of sleepers, this excerpt from today’s password protected multi currency course shows why European shares may be sleepers as well.

Here is the excerpt:

This multi currency update has three portions. First we see anther inflation indicator. Second we update our search for value. Third we end with some answers to questions from lesson one of our new updated primer course.

Recent inflationary events include the support by US authorities of Bank of America with a guarantee of liquidity and capital. B of A faces losses of up to $118 billion dollars.

The government gets shares in the bank worth $20 billion.  In other words the government stumps up about $88 billion (that it does not have).  This is inflation.

Citibank in trouble as well.

Jyske Global Asset Management wrote in its last market update three days ago:

Fears of further credit losses and rumours of another large US bank being nationalized dragged the international stock market down this week. The New Year rally last week is already forgotten, and investors are anticipating new lows in 2009.

Citigroup Inc. posted an $8.29 billion loss, only a few days after the announcement of their plans to sell the control of Smith Barney to rival Morgan Stanley.

Sales at U.S. retailers dropped in December for the sixth consecutive month (first time since 1992) and the most in three years.

S&P cut Greece’s long-term credit rating to A- with a stable outlook, due to its public and private debt and the budget deficit. The downgrade makes Greece the lowest rated country in the Euro zone.

Market participators are now speculating whether a Euro exit may become an option for some members of the Euro-bloc, analysts view Greece as the weakest economy within the Euro zone.

The European Central Bank (ECB) Thursday cut the Euro zone interest rate to the lowest level in more than 3 years.

As expected the main policy rate was cut by a half percentage point to 2%. The Danish Central bank followed the ECB with an even bigger cut of 75 basis pts to 3%.

#1: Falling interest rates are indicators for increased activity in share markets.

#2: Combine this with the fact that stock funds saw huge redemptions in 2008.

#3: Add in the next fact that international equity funds were among the most redeemed losing about a fourth of their total assets in 2008.

U.S. stock funds only had redemptions of about 10% of their assets.  Bond funds on the other hand experienced positive flows in 2008.

This increases my enthusiasm for international shares…especially in Europe.

Low interest rates plus markets that are oversold plus inflation all bode well for shares.

There are four ways to fight inflation; real estate, your own business, commodities and equities.   So depressed international equities in an atmosphere of low interest rates spells opportunity.

These three factors are the elements that create value because value investors are generally bucking the trend.

This is why last year my biggest equity position was in the Jyske Invest European Equity fund.  I picked a fund that was invested mostly in markets that Michael Keppler of Keppler Asset Mangement viewed as having the best value.

Keppler has changed some of his rankings this month so let’s review the change and see if my position still makes sense.

Let’s look at the geographical breakdown of the Jyske Invest European Equities fund I hold now.

This fund has departed quite a lot from the synchronicity it enjoyed with Keppler’s top values when I invested two years ago.  The fund’s portfolio is spread here now:

UK  24%
Germany 16%
Switzerland 13%
France 12%
Spain 7%
Netherlands 4.5%
Sweden 4%
Spain 4%
Finland 3%
Italy      2%
Greece 2%
Denmark 1.5%
Norway 1.5%
Luxembourg .5%
Ireland  0.5%
Austria 0.5%

The fund’s managers report says:

There are prospects of uncertainty in 2009. The world economy is struggling
and the optimism has turned into pessimism. Central banks and  governments have been busy introducing rescue packages and  interest-rate cuts. The help has been offered, but is it sufficient and when will it begin to show an effect? We
expect that 2009 will bring wide swings in the equity market. A lasting upturn is not likely to be just around  the corner. We are still looking at a longer period characterised by uncertainty before the optimists outnumber the pessimists.

For the fund we prefer cheap shares with prospects of earnings growth. That type of shares has historically yielded the best returns.

Though this fund no longer has the same value synchronicity with Keppler that it previously had, I’ll continue to hold this as I plan to increase my equity position. I can balance this fund’s holdings to better match Keppler’s rankings by adding Hong Kong, Singapore, Italian and other funds or ETFs.

You can learn more about Keppler’s market updates and the ETFs we use in our multi currency portfolio as a multi currency susbcriber.

Until next update, good global investing

Gary

Join Merri, me and Peter Laub of Jyske Global Asset Management at OUR INTERNATIONAL INVESTING & BUSINESS COURSE IN ECUADOR. We review economic conditions, Ecuador real estate, my entire portfolio plus investing and business ideas for the months ahead.

Gary

Your own business is a  good way to secure purchasing power. This is why Merri, our webmaster and I decided to create a new course on how to build a web business with a webmaster.  There is a special offer on this new course that expired to the general public last Tuesday…but is still available to you.  See the offer here.

Get this course FREE if you join us in Ecuador this February.

Feb 9-11 Beyond Logic Keys to More Wealth & Better Health

Feb. 13-15 International Business & Investing Made EZ

Feb. 16-17 Imbabura Real Estate Tour

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

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

Or join Merri, me and Thomas Fischer of Jyske Global Asset Management, July 24-26, 2009 in North Carolina for International Investing and Business Made EZ

Profit From the 2011 Economic Disaster


Are We 33 Months From Real Economic Disaster?

Dear International Friend,

Many investors worry about the current economic downturn…yet there is a destructive investment fundamental that is now so powerful it overwhelms all other factors that affect investing.  It has such power it could destroy most investors in North America and make the current recession pale in comparison. The frightening part is it could unleash its destruction as soon as October 2011!  I want to share what, when and when this disaster could happen.

Then I want to share how you can make a fortune from NOW THROUGH 2012 and during this crash.

Before I explain how you can reap profits never before imagined and sidestep the upcoming disaster that will wipe out so many investors…..we need to look at some facts.

These are facts, figures and statistics that will truly horrify anyone who even keeps a modest checkbook.  The figures give rise to such great concern that we can see the horrible predicament into which we are being led.

Let me prepare you by assuring you that every economic crash is simply a shifting of fortunes.  Just as the depression of the 1930s created many millionaires, so will this crash.  Once you understand the problems, you can find easy ways to protect against them and become one of those who are enriched rather than ruined during the transition.

Part of this debacle will come because the US dollar is now near a major fall…in fact an unprecedented crash is a better term what will happen to the dollar.  We now know, having seen the Dow fall 50% in a year, that US institutions are not invincible from unparalleled drops.

There may be ups for the US Dollar.  For every period of a rising dollar, there will be longer periods when dollars fall.  For every upward move, there will be an ever greater fall,  Each rising will be weaker and shorter, each fall, longer and deeper.

In this knowledge lies a fortune!  Here is why this fact is so sure.

In 1964, the year Lyndon Johnson became president, the total national debt was  $316 billion. By the time, Ronald Reagan left office that debt had climbed to $2.6 trillion.  The interest cost alone was $214 billion.  By 1990 the debt had risen to $3.2 trillion and interest costs for just the one year were $242.9 billion. Interest was the largest single government cost after Social Security, even greater than defense spending.  That was when the economic problem began as US debt moved towards a precipice where recovery becomes impossible.

Flash forward 18 years and read this excerpt from a December 2008 Washington Post article.

“President Bush has nearly doubled the national debt during his eight years in the White House.  Mr. Bush is on track to add $5 trillion to the $5.73 trillion national debt he inherited when he took office. According to Treasury Department data, the number was $10.66 trillion at the end of November, and it has been rising at an astronomical rate.”

That’s bad enough…but the future gets worse as the article says that during fiscal 2008, which ended Sept. 30, 2008 the national debt increased by more than $1 trillion, breaking the previous fiscal year record of more than $600 billion.

The government’s debt situation is about to get worse as the Post outlines that
Federal debt should increase by $2 trillion in fiscal year 2009 alone!

Given an average interest rate of 4 percent, that $5 trillion of extra debt requires extra $200 billion per year from taxpayers in interest on that debt – in perpetuity.

The Post article points out,  “During October, the first month of fiscal 2009, the national debt increased by a staggering $549 billion. That was approximately three-quarters of $1 billion every hour of every day, or more than $12 million per minute and more than $200,000 per second.”

This is a lot of debt even for America’s 14 trillion a year economy.

Then the news gets worse.

Excerpts from an August 2008 US News & World report says:  “Welcome to America’s $2 Trillion Budget Deficit.  Barack Obama has already said that America’s ‘investment deficit’ will take priority over its budget deficit.

A rough estimate of the cost of this New New Deal would be close to $500 billion a year, maybe $775 billion if Uncle Sam is to completely offset the drop in consumer spending predicted by Rosenberg. Now, as it is, the government is expected to run a $500 billion deficit next year. So the S&S plan would put that budget deficit at over $1 trillion. And if you tack on a potential $500 billion to $1 trillion bailout of the banking industry, that $1 trillion deficit could conceivably double to $2 trillion.

But a $2 trillion budget deficit would be, like, 15 percent of GDP. That would be the highest level since World War II and more than twice as high as the postwar peak of 6 percent in 1983.

I can’t believe the global bond and currency market vigilantes wouldn’t completely freak, sending U.S. financial markets into chaos. Talk about a worst—though entirely possible—case scenario.

How much worse could the situation get… a one year deficit that is 15% of Americas fourteen trillion dollar a year economy?

The answer is much worse…in fact five times worse… because…
all of these government estimates are skewed.

If US debt is now 10 trillion and Obama’s administration borrows 2 billion more in 2009, that makes the debt look like 12 trillion.

Yet according to excerpts a USA Today article, “Taxpayers on the hook for $59 trillion” by Dennis Cauchon.  The federal government’s debt is five times worse if corporate-style accounting standards are used.

The article says:  “Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later.

“The federal government does not follow the rule, so promises for Social Security and Medicare don’t show up when the government reports its financial condition.

“Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household.”

With such fundamentals, it is hard to be anything but pessimistic about the US dollar.  This is why, with the information I am about to share, you can reap profits again and again.

Take for example the financial power that comes from understanding the value of the US dollar to the Japanese yen.

Despite the crash of 2008, long term investors in the US stock market have done well.  January  1, 1982, the Dow Jones Industrial Average was 896.  January 1, 2009 it was  8,515.  That is a rise of 9.5 times in 26 years or about 36% (9% compounded) return a year…even after the 2008 crash!   $10,000 invested has grown to $95,000.

So, it seems.

Now, let’s look at the yen.  During the first half of the 1980s, the yen failed to rise in value even though current account surpluses returned and grew quickly. From ¥221 in 1981, the average value of the yen actually dropped to ¥239 in 1985.

When the Dow was 896, a US dollar bought 230 yen.

Today, 26 years later, January 1, 2009, a dollar buys about 90 yen. Imagine this. 2,300,000 yen purchased $10,000 in 1982 which grew to $95,000.   The $95,000 buys 8,550,000 yen.

The excellent Dow profit looks downright lousy, an increase of only 3.7 times in 26 years.  61% percent of all the Dow profit in the last 26 years has been lost due to US dollar erosion.  And the dollar’s fall will grow worse!

This is powerful profit knowledge…IF…you know what to.

US government debt has passed the short term point of no return.  Three bold steps were needed two decades ago, a reduction of entitlement costs (Social Security, Medicare, Medicaid, etc.), reduced defense spending and a reduction of the existing debt.  The government moved in the opposite direction… in all three cases.

There are many ill omens as our new government still does not take this incredible problem seriously. The proposed new plans might cost trillions more. These are trillions that the US government does not have.  Nor are we likely to see any increases in tax revenues during the current economic downturn.

America must borrow to spend and the deeper the US debt, the greater the dollar’s fall.

The government’s refusal to create a plan to balance the budget shows no solution is in sight.  It is menacing to see how the government plans to spend more now.

The US Treasury only has 33 months left before a tsunami of expense rushes over  the government.   By the time (if ever) the government finally recognizes this problem, for most investors, it will be too late.  If it takes a terrible crash of the US dollar to finally wake the government, it could wipe out millions of families’ saving, capital and spending power in the process.

All these facts are omens of ill winds ahead.  There are already tens of millions of Americans who have been financially wiped out….but the worst has not even begun.

We will see hyper inflation, massive unemployment and a free fall of the greenback that will affect currencies and investing everywhere.  This crash will make the current downturn…even the last great 1930s depression look like a Sunday picnic.

You do not have to be alarmed because the resolution which I am about to share is so simple, anyone can act and can prepare for this disaster without inconvenience or trouble.

You do not have to participate in the great fall of the US dollar.  All you have to do is learn how to be a multi currency investor.

The time for international investing is right.  Global diversification has already created fortunes for a few sophisticated investors because this obvious problem of the US government debt actually makes it easier to make money, if you know how to invest abroad.

Let me explain why big problems can mean big profits, then let me explain why no one has been around to tell you how to invest abroad but why there is not a solution that can make multi currency investing totally easy for you.

First, let’s look at the big problem. It’s a sad reality that US government debt has actually been ruining US investments for over 40 years.  The big bankruptcy that’s coming is just the end.  The bankruptcy really started in 1971 and has been building steadily since.

Until 1971 the US dollar was the kingpin currency for the world.  Then it was “temporarily” suspended from the gold standard.  This “temporary” move, like our debt today, was ignored by the government. Since that time (the dollar was never reinstated to the gold standard), the buck has fallen and fallen. Though you may have read about a strong dollar lately, the reality of the greenback’s slide continues.

Don’t get me wrong, the dollar has not dropped every day.  It has enjoyed some short term rises over the past 37 years, but to see the real picture all you have to do is look at the dollar’s value in any major currency in 1971 and then look at its value today.

In 1972 for example the US $ was worth over 4.25 Swiss francs, 4.00 German marks and nearly 400 Japanese yen.  Today, as you can see from the yahoo.the same dollar has dropped as low as 1 dollar per Swiss franc, .65 euro (related to the German mark) and only 90 yen.  In other words, if you had $10,000 in 1971, it was worth about 4,000,000 yen.  If you invested those dollars safely clear back in the 1970s and earned a 4% compound return, by 2008 those dollars were worth over $40,000.  You might well feel the investment had gone well.

The sad truth is those $40,000 are now worth only 3,800,000 yen!  All US dollar investments have lost over 4% compounded each and every year for the past 22 years.  Your 4% return was a real loss by hard currency standards, but this loss has been hidden and the real facts about your wealth have been kept from you.

On the other hand, had you invested in Japan, Switzerland, Germany or most other major currencies, your investment would have tripled or quadrupled in dollar terms even before you started making profits!

There is another fact that is even more spectacular.  Most stock and bond markets abroad (in addition to the currency gains) have been better than in the US.

For example had you invested in the Dow in 1978, the ow was standing at 865. Today, mid December 2008 is is 8,500.  $10,000 invested in the Dow in 1978 would have grown to about $100,000…even after the global stock market crash.

Not bad?

If instead you had invested $10,000 in an investment as simple as the Templeton World Fund which started in 1978 and invests in stock markets al over the world, the $10,000…after the 2008 global crash…is still worth $352,080.

Look at the performance of bond markets as well.

Right now you receive 1.96% on the U.S. Treasury bonds that mature 2013.

Yet good quality Danish bonds of about the same term pay 4.53%  in Danish kroner.

Norwegian kroner bonds pay 3.70%
Swedish government bonds pay 2.74%
British Treasury bonds pay 3.18%
Mexican Government US dollar bonds 5.10%
Peru Government US dollar bonds 7.57%
South African bonds in euro pay 8.61%
Indonesian bonds in US dollars pay 11.57%
Hungarian Government Florin bonds 12.35%
Brazilian Government Real bonds 14.78%

Plus all of the currencies above (though depressed lately) have appreciated as much as 50% versus the dollar in recent years.

These statistics show how US government debt has invisibly, but relentlessly, destroyed the value of our investments in North America.  These statics come from my multi currency investment course, that can help you prosper even though the US dollar falls.

I’ll explain the course but first let me explain why, even though the US dollar has fallen so dramatically over the past 37 years, no one has been knocking on your door to tell you how to invest abroad.

It is the very weakness of the US dollar that has stopped North American banks, brokers and other financial institutions from telling you about the problem. These facts have been hidden from you because they have been afraid if US investors knew how bad the dollar has been that no one would deal with them.  They have, short and simple, been afraid of losing business.

Now let me tell you about this simple easy-to-use investment course called Multi Currency Investing  (MCI) and how you can have it on a no risk basis.

First, let me explain that the course is designed for anyone.  It is even for those who have never invested abroad, even if they are small investors with only a few thousand or a small amount to invest monthly.  MCI explains how investments can be made overseas for small amounts.  It even explains how to invest out of the US dollar right her in the US and never leave your home of office.

However, MCI also gives sophisticated information that you might not know even if you have been investing all over the world.  Some of my readers and course delegates are billionaires who own dozens of companies and invest all over the world!

Sleepy, Safe Portfolios Can Earn Over 100% Per Year

Multi currency investing does not require any fast trading techniques.  Multi currency portfolios are normally slow and sleepy investments…not currency contracts or futures speculations.  Most multi currency positions are aimed with a five year horizon…pretty sleepy compared to people who trade currencies (an entirely different and far riskier technique). For most of us, slow and sleepy mean SAFE!

Yet multi currency portfolios can be really profitable as well.

How sleepy and how safe?

Let’s look first at sleepy.

In 2006 we created an Asian multi currency portfolio consisting of just five award winning mutual funds.

We did not touch the entire portfolio for an entire year. Then after one year we made just five changes…dropping two mutual funds and adding three other mutual funds. Then we did not make another single change. That’s pretty sleepy, choosing a handful of mutual funds and making only five changes in two years.

Okay. Here is the big question. How profitable?

In the first year (2006) this portfolio rose 114.16%. Then we made the five changes mentioned (two funds dropped and three added). In 2007 this portfolio rose 122.62%.  2008 was a disaster year and the portfolio lost 79%. But when your portfolio is up over 236% in two years, it takes a lot of disaster to lose…so this portfolio is well ahead even after the great 2008 crash.

Year one up 114%
Year two up 122%
Year three down 79%

Total in three years…up 157% or an average of over 52% per annum for three years…even after the 2008 crash.

May I hasten to add that the portfolios published in the portfolio are not published recommendations.  These are portfolios we study to learn why they rise or fall. More on this in a moment.

First let’s examine safety.  How safe?

The portfolios were chosen with the help of one of the world’s safest banks and the mutual funds were all subsidiaries of that bank.

That safe bank is a Danish bank. That’s good because in recent years Denmark has been rated by Standard & Poor’s as one of the safest country in the world in which to bank.

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

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

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

Let’s address this issue of safety in more detail. Normally this is a pretty moot point. Right now everyone is concerned. Is a bank safe or not? I like Jyske from a bank safety point of view because there are three bank safety points, from the top down.

Bank Safety Point #1: A recent Yahoo Canada article shows a survey by the World Economic Forum listed five safest countries in which to bank.

Canada
Sweden
Luxembourg
Australia
Denmark

So Denmark is a safe place to bank. Now let’s look at Jyske Bank’s safety rating.

Bank Safety Point #2: Jyske Bank is Denmark’s second largest bank.
On October 10 2008, Moody’s affirmed Jyske Bank’s long-term Aa2 rating stable rating. This decision came despite the deteriorated economic prospects in Denmark, particularly in respect of the property market.

Bank Safety Point #3: Also on Friday 10 October 2008, the Danish Parliament passed a bill that secured all deposits and unsecured claims against losses in Danish financial institutions. The rating of the Kingdom of Denmark is Aaa/AAA with Moody’s and Standard & Poor’s respectively.

These are common sense bankers. They had minimal sub prime exposure when that scandal broke. Jyske had zero Madoff exposure.

That’s safe!

I happen to know Jyske Bank because I began using them (as my bank) over 20 years ago. They are one of the few banks that offers a special multi currency portfolio service for investors from almost anywhere in the world…including US investors through their Jyske Global Asset Management.

I was one of the first writers and publishers to begin writing about multi currency investing. Jyske bank was one of the first banks to offer a multi currency portfolio service…and they were my bank.

Not surprising we got together and have created a symbiotic relationship that can help you learn how to create multi currency portfolios that suit you.   Jyske Bank assists by providing information that only a huge global bank trading 50 billion dollars of currencies and contracts a day (as Jyske does) can afford.   My symbiotic relationship with Jyske allows me to combine my experience with this bank’s incredible knowledge, real time information capability and expertise so you learn in a most practical way from some of the greatest multi currency experts in the world.

Now let’s look at both the up and down side of these high performing portfolios and how they work?

The goal of MCI is not to recommend investments for you, but to help you learn how to be a multi currency investor so you are better at directing your broker,  banker or investment advisor.

To accomplish this goal, the course provides three levels of education.

Part one of MCI is an extensive beginner’s guide to developing multi currency portfolios.  This entire primer is sent to you when you begin the course.  This portion of the course takes nothing for granted and walks you step by step through every part of international investing.

Take, one of the primer lessons as an example. It explains theory on some of the reasons why currencies move, but taking nothing for granted it also explains what the currencies of the world are and gives their history, so before you learn why the euro doubled versus the US dollar, you get to know these currencies and the their underlying fundamentals.

Another lesson in the primer gives case studies that are real examples of how the theory has been put to use in the past.  This lesson covers theory on why currencies move and how to spot the hot currencies months ahead of time. Then it gets down to brass tacks and explains how to open bank accounts overseas to hold the hot currencies…or even how to invest abroad through US banks and brokers.

Everything about how to bank abroad and hold the currencies is covered.  How to open accounts, how to send money abroad all the laws relating to overseas accounts, taxation, etc. plus the most important part, which is how to spend the money when you need it from overseas accounts.

Then the course gives a real, live case study that show how the theory works in reality. It tells about an investor who opened an account, got a  checkbook and credit card and how he used them both and held several currencies for higher returns that he gained with US dollars.

Finally you also get valuable contacts in the course.  These are vitally important. There are names and addresses of institutions and source of information you can use to turn your knowledge into action!

Here is the syllabus of the primer you will receive in MCI.

* Why Currencies Move.

* How to Bank Abroad.

* How to Buy Stocks and Bonds Overseas.

* How to Choose Currencies.

* Why Currencies Rise and Fall.

* How to Borrow Low and Deposit High.

* How to Buy Mutual Funds That Invest Abroad.

* ETFS. Why They are Often Better Than Managed Funds.

* How to Find Bonds that are Like and Often Better than Shares

* How and When to Capture Recoveries.

* Global Portfolio Diversification Theory.

* When Leveraged Low Risk Portfolios Are Safer and Perform Better Than High Risk Portfolios.

The primer deals with the past…but as we so vividly saw in 2008…markets are always in a state of change so…

Part two studies global markets in real time.  Your MCI course comes in regular emailed lessons usually emailed every two or three days.  Though at times you’ll get a lesson every day for many days in a row. Other times nothing will come for a week because these lessons are based on real time market activity.  MCI studies currencies and global investment markets and reports to you on their value and why that value occurs.

This portion of the course studies the current performance of portfolios that Jyske bank creates…plus examines the portfolios of several globally diversified mutual funds….for both small and large investors.   This portion of your course gives you an overall, up-to-date understanding of market and currency moves.

Part three of MCI shares my portfolio and where I invest.  This is an unusual feature…so let me explain why MCI regularly reviews my personal investment portfolio and how this can be of value to your investing.

First this is honest.nd we have fund that for us…honesty pays.

As we recently learned from the Madoff scam…investors must always be on guard.  This is our 41st year of educating about international investing.  This is all we do and our great long term success has been based on placing our readers ahead of all other considerations.   We do not sell investments. We do not give individual advice.  We have no hidden agendas that could lead investments astray.

We want you to see and know what we are doing based on our own advice so you can trust the data we share.  Otherwise the lessons do little good.  You the reader are the only way we earn.  We do not receive commissions…or any form of remuneration for selling shares or accounts etc.   We hope to work with you for life…rather than make some type of quick killing by advising you to invest in something we d not really believe in.

We feel that by letting you know how we actually invest helps accomplish this long term bond.

This is vital because we often invest exactly the opposite of the market.

Take for example the five 2007 portfolios we studied in MCI:

Portfolios             12 Month Rise
Swiss Samba           53.32%
Emerging Mkt        122.62%
Dollar Short             48.19%
Dollar Neutral          38.67%
Green                    266.30%

This is performance you will rarely see duplicated…anywhere…at any time.

Yet these were model portfolios…not meant to be yours….not meant to be mine.  I do not invest in these portfolios because…they do not suit my lifestyle and my unique personal financial needs.  One of the key lessons that MCI focuses on…again and again is “there is no perfect portfolio for you”… except one designed uniquely for you.

My portfolio is not perfect for you either…yet seeing “how” I adapt my portfolio to our virtual real time portfolio reviews can help you learn how to adapt your personal portfolio  as well.

So even though our study portfolios were enjoying world class performance, exploding upwards like rockets,  I was reducing leverage and getting out of markets.  On August 17, 2007…well before the 2008 collapse began I posted the note in an MCI lesson on why I was getting out of leverage and equities.

“Such historical measures are so inexact that we cannot predict just from them what will happen in the short term. The numbers are close enough that we could be entering the fourth sub cycle down (similar to 1976 to 1978). If so expect a sustained drop in markets for two to three years.”

Even though the portfolios MCI studied continued to rise, I sent another danger lesson to the course on September 21, 2007. “Equity markets dropped again violently last month. Now these markets have recovered again. Yet this may be a last gasp party.”

I began increasingly concerned for myself and on October 14 sent this lesson  “Periods of high performance are followed by times of low returns. We never know for sure when an upwards cycle will stall. Fundamentals look good for a bright 2008 in emerging and equity markets, but this can change quickly so to give our readers a better perspective, this year we are reducing leverage and adding a sixth portfolio with no leverage to study”.

The Oct. 15, 2007 lesson said: “Okay it’s time to turn the burner down and offered a “leverage dwindling” warning.  On Oct. 26 I explained to readers that I had eliminated even my modest leverage and wrote: “There is a final reason I liquidated my leverage now…to lead by example. Too many readers are thinking that the dollar short or dollar neutral Portfolios are only up 38% or 48% for the year. When one thinks that way they could be headed for trouble, so I hope investors will follow my lead and take greater care with their leverage.”

I did not stop. The November 8, 2007 was a Black Friday interim message that warned again about all the points above and more.

This created one plain and simple fact.   The 2008 stock market crash drop did not surprise those enrolled in MCI.

Right now at the end of 2008, I am adding leveraged bonds to my portfolio. Here is an excerpt from the December 28, 2008 MCI lesson:

There are many similarities between the US economy and the US government’s response to the downturn with Japan’s slowdown in the early 1990s and the Japanese  government’s response then.   Readers made fortunes borrowing yen as they may make fortunes borrowing dollars now.

Watch especially now for ways to borrow dollars at low rates for investing in high yield, short term dollar bonds like:

Currency                      Bond                               Yield

USD    9.125   19/05/2009    SOUTH AFRICA     6.04%

USD    10.25   17/06/2013     BRAZIL REP OF     6.24%

USD     8.25     31/03/2010     RUSSIA                   5.93%

This type of bond has no currecny risk if leveraged in US dollars.  Your only major risk is default.

Bonds denominated in euro are even more to my liking because they pay higher interest and have a potential forex gain if the dollar drops again verus the euro.

Yet our lessons are objective and provide warnings of risk as well.  This type of leveraged investment also has a chance of loss if the dollar rises verus the euro. Do not borrow more than you can afford to lose!

There is even more yield potential in bonds denominated in euro.

EUR      5.75   02/07/2010     ROMANIA             10.81%

EUR    8.5     24/09/2012     BRAZIL REP OF      7.49%

EUR    5.25     16/05/2013     SOUTH AFRICA     8.61%

These three bonds yield an average 8.97%. They represent a diversification into Europe, Latin America and Africa.   If you invest $100,000 and also invest another borrowed $100,000 at 4%, your total annual return is 13.94%  before  any forex gains or loss.

MCI provides you with bank contacts who  lend in many currencies often at very low rates, to leverage investments.

Multi Currency Investing helps you enjoy the ultimate form of financial security.

From the very first lesson, you expand your knowledge about investing abroad.  You gain contacts that can bring you solid profits and safety when most investors are being silently robbed blind by the steady deterioration of the US economy and the US dollar.

I want to give my readers an answer to relieve the anxiety they faced from this awesome dollar problem that I don’t think is going to get solved.

I originally started this course just for my readers.  Tens of thousands enrolled and we have shared how to invest globally for deades.

Now due to the 2008 global economic crash, I am rewriting the entire course.  This
crash has changed everything and I would like to share how to profit in 2009 with you.

Everyone needs to know how to have multi currency diversification. But in case this course does not help you, we provide a 30 day “completely satisfied or your money back” guarantee that we have offered our hundreds of thousands of readers for more than 20 years.

Our Multi Currency Educational Service is normally a mere $249 for a very long and educational year!

Won’t you share this exciting world of wealth accumulation with us and our readers around the world?

Subscribe here or see below how to join us in Ecuador or North Carolina and receive this course FREE.

Gary Scott

P.S.   As previously mentioned, the portfolios we tracked in 2007 had the following results:

Portfolios             12 Month Rise
Swiss Samba           53.32%
Emerging Mkt        122.62%
Dollar Short             48.19%
Dollar Neutral          38.67%
Green                    266.30%

You can imagine performance like this attracted quite a bit of attention…and it did.

However these high returns were not the important benefit our readers gained.

MCI does not recommend nor manage portfolios.  We did not suggest that readers invest in these portfolios. We created and tracked them because they were educational.

The courses is designed so you can work with your own investment manager to create your own multi currency portfolio that suits your own special, individual needs.  The multi currency investment course is designed to help you learn how to manage your manager… nothing more.  Yet this is a lot because Jyske Bank can provide a stable and safe institution for those who wish to employ a multi currency strategy.

The course will help you guide  any investment adviser or investment manager who understands how to invest in more than one currency.

The course also helps you manage risk. The incredible portfolio performance above was achieved because the portfolios were leveraged using a tactic we call a multi currency sandwich. Investors borrow low and invest in yielding or growth portfolios. The portfolios used loans in Japanese yen and Swiss francs to magnify profits in good times.

Plus we learned how leverage pushes losses faster in bad times and that leverage can help recovery at the end of bad times as well.

Here is an interesting multi currency fact that provides us with a valuable investing idea.   In 2009 we are tracking three Jyske portfolios.

Low Risk Multi Currency Portfolio invests in:  Fixed Income 70%,  Equities 20%,  Alternatives 5%,  Cash 5%.

Medium Risk Multi Currency Portfolio invests in: Fixed Income, 40%,  Equities 50%,  Alternatives 5%, Cash 5%.

High Risk Multi Currency Portfolio invests in:  Fixed Income  10%, Equities 80%,  Alternatives 5%,  Cash 5%.

Our studies to date have shown that the low risk portfolio, with some leverage, can be safer and perform better than a non leveraged high risk portfolio.

MCI continually reviews these portfolios so we can earn real time from their performance.

Subscribe here or see below how to join us in Ecuador or North Carolina and receive this course FREE.

Here is what a few others from around the world have said about our services and reports on international investing.

“ Gary , I am a long time subscriber in various media, and while cleaning out my files today I found some old ‘Gary A. Scotts World Reports’. In particular, the April 1988 issue provided the info that made me over a million dollars. Just wanted to say a belated ‘thank you’ and please continue the excellent work. Warm regards,”
From an Unknown Reader

“Dear Gary, I would like to give thanks to you for introducing me to Jyske Bank two years ago.

“I have been a long-time client of Merrill Lynch, but am in the process of re-evaluating my relationship with the largest brokerage company in the world. My problem is that when I compare Merrill to Jyske, Jyske outshines Merrill (or other major U.S. brokerage firms) in most categories as follows:

“1) Even though Jyske is much smaller, it has a much more global perspective which is critical in an evermore global investment environment.

“2) In order to maximize their own individual revenue, the brokers at Merrill prefer to outsource the day-to-day management of their accounts to various fund managers and hence, ‘manage the managers’. In contrast, I can call my Account Manager at Jyske and he can discuss every aspect of my account in detail with me.

“3) I attribute this difference in #2 to the fact that Jyske’s employees are not compensation driven, but instead are focused on satisfying their customers. That is why Jyske’s clients stay with the Bank on average for 12 years, which is phenomenal by Wall Street standards.

“4) Jyske’s security is far more stringent than that of Merrill’s. In addition to the standard account code and password, to pass through Jyske’s security one has to enter a Key Card number and also a randomly-generated 4-digit number from said Key Card.

“5) Having an account offshore allows me to sleep better given the anxious times we live in. Since I report the existence of the account and pay all taxes due, I am fully compliant with the law. However, such an account gives me and my family a ‘financial life boat’ should events in our own country ever get out of hand.

“As Dorothy Parker once said, ‘You can lead a horse to water, but you can’t make them THINK’. Jyske is a thinking person’s bank. My only complaint is the time zone difference since I live in California . However, since I am an early riser and my Account Manager is very responsive to my emails, this problem is very small relative to the HUGE benefits.

“Again, many thanks for introducing me to Jyske Bank. Given the ‘dumbing down’ that occurs in the popular media today, your ezine and its recommendations are ever more important. Please continue your good work to enlighten your readership.  Warm regards,”
C.M. CALIFORNIA Businessman

“I was so overwhelmed with information I received I had to spend several days reading, sorting and filing it! I have decided to move my modest investment capital overseas.”
B.W. MONTREAL CANADA Professor

“Send me your report on safe banks lending at 7% for redeposit at 13% or more.” B.V. ADDIS ABADA ETHIOPIA Economic Commission United Nations

“A number of new and significant contacts were made. It would be extremely helpful if you could supply us with WORLD REPORTS.” I.M. TORONTO , CANADA Banker

“You are as good as your word which is rare these days. I look forward to attending one of your seminars.” C.K. GENEVA , SWITZERLAND Banker

“In spite of my marketing experience, your information really got me going!” M. C. LONDON, ENGLAND Marketing Consultant

“Thanks for the three reports. They are very interesting and should find many readers here in Japan .” M.A. Tokyo , JAPAN Computer Programmer

“I would like to say how much I enjoyed the information I received.” A.B. Providenciales TURKS & CAICOS Accountant

“First let me say how much we enjoyed the investment seminar.” W.J. SAUDI ARABIA Oil Engineer

“Once again thanks for all the great information.” G.K. PERTH , AUSTRALIA Insurance Executive

“Your letter of November 8th warned me to beware of the market just a week before the 120 point crash on November 15th!” T.G. N. CAROLINA Pilot”

Yet global economics 2008 have changed everything.   So I am now offering this course to a wider audience who have indicated their concern with the state of the US economy.

Before I make this offer to a wider audience however, I want to make a special December offer to you.

This course has been and is normally offered for $249.

To begin, I am reducing that price to $175…a savings of $74…yet there is much more because you can enjoy this course FREE.

You can enroll here…now and save $74

Here is how to receive this course FREE.

In 2009 I will work with Jyske Bank to conduct four  courses  about how to be a multi currency investor.

Two of these courses will be conducted in Ecuador

February 13 -15 and Nov. 6 to 8, 2009

The other two courses will  be conducted in North Carolina.

July 24-26 and  Oct. 9-11, 2009

Simply sign up for any of the four courses above and you receive the Multi Currency Course in 2009 FREE.

Ecuador Sunday in Manta


Ecuador Sunday’s in Manta can be wonderfully civilized even from your own $49,000 sea view condo…as you will see below.

Manta is Ecuador’s fastest growing city…has been for years.

As an international port there are parts of the town that are rough. FOR EXAMPLE, STAY AWAY FROM THE TUNA FACTORIES IN NORTH MANTA…PHEW!

Yet at its center Manta is quite civilized, everything evolving around the Oro Verde Hotel.

Oro Verdes are great! The first hotel we ever visited in Ecuador was the Oro Verde Guayaquil. I loved it! Though sadly I have been told that Oro Verde Cuenca filled in the beautiful lake that wrapped around it. They turned it into parking.

I guess Big Yellow Taxi’s go there now…remember the lament.

Don’t it always seem to go
That you don’t know what you got till it’s gone
They paved paradise and put up a parkin’ lot

A pity about that in Cuenca…but the Oro Verde Manta is still great….especially on Sunday morns.

manta-condo-for-sale

They have a killer breakfast buffet and the restaurant has wonderful sea views. Yet the Oro Verde Manta is special for Merri and me for another reason…

manta-condo-for-sale

Cinnamon rolls and…

manta-condo-for-sale

croissants.

Merri and I lived in England and Europe for over a decade…spent a lot of time in Switzerland, France, Germany and Italy. We picked up some bad habits…like European bread and for me dark roasted coffee.

We take care with our nutrition, so we limit our access to these potential sins…but on Sunday mornings we allow ourselves to let go! We’ll eat croissants if we can find good ones.

This makes the Oro Verde Manta special because overall bread in Ecuador sucks. I love the food in Cotacachi except the bread. I dare you to find a croissant that a Frenchman would spit on.

The Manta Oro Verde has some of the best croissants, pan au chocolat and cinnamon rolls in the world! We live 40 minutes north in San Clemente and even though we are no longer city folk, we just might drive all the way.

For those who want to be in the city there is an easer solution…buy a condo in Manta. They come in all sizes, shapes, colors and form.

Here is one at the low end we visited on our last coastal real estate tour.

manta-condo-for-sale

This is a few blocks off the beach…but very walkable to the water.

All tile and clean almost to sterility.

manta-condo-for-sale

The sitting-dining area has an ocean view…no balconies though.

manta-condo-for-sale

The bedroom…

manta-condo-for-sale

has a shot of the ocean as well.

manta-condo-for-sale

The kitchen is efficient and compact.

manta-condo-for-sale

as is the washer and dryer.

manta-condo-for-sale

Plus there are plenty of closets.

manta-condo-for-sale

We met the couple who live in the penthouse above…nice people…Americans who work in New York from Manta via broadband.

All in all this is a nice unit, I am guessing about 750 square feet, 1 bedroom, 1 bathroom in a good part of town. The asking price is $49,000…fully furnished…all appliances included.

I have just sent a Manta condo report with more details and broker contacts to our Ecuador Living subscribers. You can find our how to subscribe here.

Until next message, may your Sundays go really well.

Gary

Join us at a course in Cotacachi or on Ecuador’s coast this winter.

Jan. 16-21 Ecuador Spanish Course

Jan. 22-23 Imbabura Real Estate Tour

See condos like this in Cotacachi for $46,500.

Ecuador-real-estate-advertising

Jan. 24-27 Coastal Real Estate Tour

See Manta condos like this one. Delegates are inspecting the 1,000+ square foot patio.

Manta-Condo

The patio has this view.

manta-condo tags

Feb. 9-11 Beyond Logic-Shamanic Mingo

Feb. 13-15 International Business & Investing Made EZ

Feb. 16-17 Imbabura Real Estate Tour

Here is a long shot of Cotacachi.

Cotacachi-condos

March 8-9 Imbabura Real Estate Tour

March 10-15 Ecuador Export Expedition

March 16-19 Coastal Real Estate Tour

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

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

Multi Currency Bank Safety


Multi currency bank safety has become a big concern in these troubled times. Trust has been eradicated from the system which leaves investors wondering more about risk.

Today is my 62nd birthday and I would like to thank you for sharing the day with me.

I will do almost anything to learn ways to help you. Here’s proof of the pudding.

Ecuador-Healing-Springs

This may look like I slipped and fell in the mud.

Actually I was trying out a little known volcanic pool near our home on Ecuador’s Pacific coast. The clay is said to purify and heal. Here I am in that pool with the natives!

Ecuador-healing-mud

Imagine this. I can now collect Social Security. I will, but this decision has nothing to do with retirement. See why and how my decision can help your wealth at Multi Currency Diversification.

Merri’s and my health, energy and vitality are good. We love what we do. Why not keep on going especially in these fun filled, challenging times of incredible opportunity?  But to take advantage of the opportunity we have to be sure we are not wiped out in the current volatility.

So let’s look at bank safety and since we share so much about Ecuador at this site, let’s look at Ecuador’s banks first.

Then we let’s look at the five safest banking countries in the world.

No bank can have a better credit rating than the country it is in!  Instead of looking at banks, Ecuador as a nation has a B3 Moody’s rating, CCC Fitch rating and B- from Standard & Poor’s. These ratings are somewhere between “highly speculative” and “substantial risk.” No matter how you cut it…the credit agencies are all saying “do not leave a lot of money laying around in Ecuador”. We just finished a lesson on what all the credit ratings mean in our multi currency course.

This is probably not an issue for most multi currency investors because they cannot even have an Ecuador bank account. We continually research to get answers to questions from our Ecuador Living subscribers.

One subscriber recently asked if non residents can open Ecuadorian bank accounts. Here is a reply from our attorney.

“We’ve spoken to quite a few banks about the subject lately and they all
require that the foreigners be residents for them to open a bank account
(checking account). Some banks, however, will allow non residents in the
process of obtaining residency to open a savings account. I will check with
some other banks but this does seem to be a general policy among them.”

If you have questions about Ecuador subscribe to Ecuador Living. We do our best to answer them.

Merri and I do not have a bank account in Ecuador. This has nothing to do with residency or bank safety. Our basic asset protection banking philosophy, which I originally published in the 1970s in my first book “Passport to International Profit,” is even more valid today than it was over 30 years ago. This is:

Live in one country
Bank in a second country
Invest in many countries
Earn in two or more countries
Use a company incorporated in a fifth country
Take a second residence

Since Merri and I live the most in Ecuador and the US, we do most of our banking elsewhere.

We use our ATM card to live on when in Ecuador. Our bank in Cotacachi is here.

ecuador-bank

In this Cotacachi square.

ecuador-square

So where should a multi currency investor do the majority of his or her banking? Multi currency investors do not want to hold a good multi currency basket of investments in a bad bank…or even worse in a country where banks are unsafe.

A recent message Economic Safety in Troubled Times showed one way to gain US dollar bank safety in North Dakota.

There is even more safety a bit further north. Canada it appears may be one of the safest places to bank. Canada has many wonderful sites and scenes such as this British Columbia shot taken by our friend Dennis Goff.

High Energy Sunrise

Dennis by the way has a great web site about Ecuador at www.e-quator.net

I am really glad to see this and explain why in a moment. First, let’s review Canada and bank safety.

Canada has great bank safety according to a Yahoo Canada article entitled “Canada rated world’s soundest bank system” by Rob Taylor says: Canada has the world’s soundest banking system, closely followed by Sweden, Luxembourg and Australia, a survey by the World Economic Forum has found as financial crisis and bank failures shake world markets.

But Britain, which once ranked in the top five, has slipped to 44th place behind El Salvador and Peru, after a 50 billion pound ($86.5 billion) pledge this week by the government to bolster bank balance sheets.

The United States, where some of Wall Street’s biggest financial names have collapsed in recent weeks, rated only 40, just behind Germany at 39, and smaller states such as Barbados, Estonia and even Namibia, in southern Africa.

The article listed the top five safest countries as:

Canada
Sweden
Luxembourg
Australia
Denmark

Singapore was 13th and Switzerland 16th.

The current economic correction has reduced bank safety but there is another reason to be a multi currency investor. The current bailout will create inflation and currency corrections…including further weakening of the US dollar.

This leaves investors with three options:

Multi Currency Option #1: Earn more.

Multi Currency Option #2: Hold assets in other currencies.

Multi Currency Option#3: Live where life is good but costs are low.

This is why the focus of our three sites have these focuses, #1: to help develop small international businesses; #2: invest in many currencies and #3: live in Ecuador.

Our fourth focus is on natural health.

We enjoy Ecuador because life is good there. Prices are low and there are many natural health benefits.

However there are some risk…not in banking, not from Ecuador’s government and not from crime or civial unrest. The most realistic risk is from lack of experience in a new found place.

Earlier in this message I mentioned Dennis Goff’s new blog at www.e-quator.net. The blog features the Wall & Madison business run by Bob Lofgren and Deborah Nance. Dennis, Bob and Deborah are all long term readers who have become friends with Merri and me over the years.

Bob & Deborah were among the first readers to move to the San Miguel gated community. Here is a group of our real estate tour delegates visiting San Miguel.

cotacachi-ecuador-san-miguel-visit

There are some very wonderful homes here. I helped one of my readers sell his recently for $85,000.

cotacachi-ecuador-san-miguel-house

Here is a typical San Miguel Home.

Let me say right here, that I have nothing financially to do with San Miguel in any way. I live nearby and most of the houses and lots in San Miguel are owned by readers. Otherwise I am not involved.

Bob & Debroah have started a business to help San Miguel owners because of a problem Deborah described in this note to me.

Gary, As you know, who you trust down here makes all the difference in the world. What should be one of the best experiences of your life can turn out to be a nightmare if you work with the wrong people. There are westerners here who came to Ecuador late in life with no money to make their fortunes before it is too late, and will tell a buyer anything to make the sale. Our attorney has examined contracts from two developers and says they won’t hold up in court. One contract was taken before a judge and pronounced completely useless. Being foreigners, buyers have very little legal recourse if they get hooked by one of these people.

Robert and I are not wealthy people, but we have enough money to live comfortably for the rest of our lives. Given the spectacular scenery, clean air and water, abundance of healthy food and sweet people, we certainly feel rich living here. Many people will attest that after talking with Robert and being very excited to buy and build, Robert will tell them there is no land rush, and to go home and think about it and be sure buying in San Miguel is what they really want to do. We care a lot more about our souls than our pocketbooks. We started Wall and Madison, not to make our fortunes, but to be of service and to do things right. Just yesterday two women from New Zealand were here. They told Robert that they had traveled all over the country, and the construction here at San Miguel is the best they had seen in Ecuador. Unfortunately, even the Ecuadorian builders who are honest often have no idea of Western standards.

Robert and I have spent a great deal of time and gone to a great effort, along with our attorney, to see that Wall and Madison is entirely legal and above board. Ecuador doesn’t exactly make it easy to comply with the law. Perhaps that is why most developers don’t. It really is a buyer beware situation down here. So I am glad that you are willing to feature Wall and Madison with your readers. I can promise you that we won’t let you down.”

You can learn more at www.e-quator.net

Safety appears to be more important in troubled times…but really finding safety with the banks, the people and currencies you deal with is ALWAYS important.

This is why multi currency safety is as important as bank safety. Investors who do not have multi currency diversification can end up holding assets in a safe bank but with a worthless currency. Do not miss tomorrow’s message as it reviews my multi currency diversification now.

Gary

Join Merri, me and Jyske Global Asset Management at one of our courses. We review economic conditions, Ecuador real estate, my entire portfolio and natural awakenings to health and wealth with investing and business ideas for the months ahead.

International Investing and Business Made EZ Ecuador
https://www.garyascott.com/catalog/international-business-made-ez-ecuador

We’ll look at potential of real estate for sale on this lake.

Ecuador-lake-sites

and the value of Ecuador homes at San Miguel and Prima Vera II.

cotacachi-ecuador-san-miguel

Primavera II $46,500 condos.

multi-currency-Ecuador-condos

We’ll review review potential on Ecuador’s coast.

Ecuador real estate for sale

Salt or fresh water

Ecuador real estate for sale

Join me with the staff of Jyske Global Asset Mangement in Naples Florida to learn more about where in the world to invest now.  Learn how to attend this course free and save $499 to $750.

Until next message good global investing!

Gary

One of the best ways to prosper in this downturn is with your own internet business. You can enroll in our email internet course here for $299. However if you sign up for all three courses in June or later in 2009, I’ll send it free. You save $299. Learn more here

Get our web based course FREE if you join us in Ecuador. Learn more here.

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

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

Future 2009 courses

May 29-31  JGAM Florida Investment Course

June 12-14 Shamanic Mingo Tour
June 16-17 Imbabura Real Estate Tour
June 18-21 Ecuador Coastal Real Estate Tour

July 3-6 Ecuador Import Export Expedition
July 8-9 Imbabura Real Estate Tour
July 10-13 Ecuador Coastal Real Estate Tour

July 24-26 IBEZ North Carolina

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

Oct. 9-11 IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

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

Ecuador Crime


Ecuador crime & safety.

A reader just sent me this note about Ecuador crime.

Hi Gary, My husband & I have been reading everything you’ve sent on Ecuador & it sounds ideal. We were all excited about it as a prospect to move from the US to until we saw the US State Dept. website & what they
had to say about crime, rape, robbery & disease! It sounds awful. Have you seen it & what would you say in regards to? Thanks.

This is a good question that affects us all.

I replied:

I have written numerous times about risk during any travel because we all increase our risk when we go places we do not know. There are places of great risk in Ecuador as there in in New York, Seattle, Miami, LA or any city anywhere in the world. Yet people in these cities live fine because they know where to go and where not to go.


The State department correctly focuses on the most negative part of any country and they should. However there are vast parts of Ecuador that have been perfectly safe for us. This is a huge part of our service helping our readers know where readers have ad journeys and where they have not. Merri and I have taken several thousand people to Ecuador without a single violent crime. Where we live, we feel safe being out any time. Children are seen day and night playing, walking…on their own…without fear. I would let my grandchildren go more places in Cotacachi Ecuador than in the suburbia of Rockwood Oregon where I grew up.

However everyone has to make their own decision about the realities of risk.

Ecuador people are generally happy like these girls in Cotacachi.

ecuador-indigenous-girls

Ecuadorians are not violent people by nature. Even the worst reports suggest this.

Ecuadorians are friendly people.

Ecuador-friendly-people

The Overseas Security Advisory Organization wrote in their 2008 rpeort about Ecuador crime entitled “Overall Crime and Safety Situation”.

The criminal threat for Quito and Guayaquil is rated “critical” by the U.S. Department of State. Non-violent crime is the most common problem encountered in Ecuador, but police statistics show a significant increase in violent crimes. Reports of murders, rapes, kidnappings, carjackings, armed assaults, and burglaries are becoming more frequent throughout the country. The U.S. Mission to Ecuador personnel and other American citizens are routinely victimized by crime. The Regional Security Officer (RSO) continues to receive numerous incident reports from U.S. Mission personnel and American citizens detailing criminal acts committed against them, their families, and friends. Police reports show that in more and more cases, criminals are using some sort of weapon in the commission of their crime.

Children play safely in the streets night and day in Cotacachi.

ecuador-safe-children

The Overseas Security Advisory Organization report goes on to say:

Fortunately in the majority of these cases, the weapon is used for intimidation purposes only, with the result being that cooperative victims are seldom injured. Gratuitous violence is generally rare throughout the country, but is becoming more common in the larger cities, especially in Guayaquil.

Public transportation and tourist areas are still the locations with the highest crime rates, although the RSO office receives incident reports from different locations throughout the country. The RSO office recommends that visitors bear in mind that crime can impact anyone, anywhere, at any time, and thus should exercise normal security precautions throughout the country.

Observations/Trends

Ecuador is considered a critical crime country and hundreds of Americans are robbed each year. Weapons are readily available and criminals are frequently armed.

Ecuadorian people are not violent.

ecuador-happy-people

The Overseas Security Advisory Organization report adds:

Violence is rare as long as the victim cooperates. There is no evidence to suggest that Americans are singled out for crime, but some Western foreigners are perceived to be wealthy, causing them to be targeted by criminals. In two of the incidents, the victims were approached by perpetrators who used improvised schemes to approach the victims. This tactic is increasingly common, meaning that visitors should be wary of all requests for assistance

I wish I could report that Ecuador is crime free. Even more I wish that the world was crime free. Even more I wish I could report that crime in the USA and around the world was diminishing.

This is not the case.  Crime is growing in many places.

A recent USA Today article pointed out growing crime problems in America’s suburbia. It said:

Suburban neighborhoods are becoming refuges for those outpriced in gentrifying inner-cities.

Devastated by the subprime mortgage crisis, hundreds of homes have been foreclosed and thousands of residents have been forced to move, leaving in their wake a not-so-pleasant path of empty houses, unkempt lawns, vacant strip malls, graffiti-sprayed desolate sidewalks and even increased crime.

Many homeowners not only cut their own grass but also trim the yards of vacant homes on their streets, hoping to deter gangs and criminals from moving in.

Other residents discovered that with some of the empty houses, it wasn’t what was growing outside that was the problem. busted several pot homes with vast crops of marijuana growing from floor to ceiling.

The white picket fence of an American dream has faded into a seemingly hopeless suburban nightmare.

Tomorrow’s message looks at how these shifts in suburbia creates opportunity.

The point in today’s message is that crime is everywhere. in Ecuador as well as the US.

Ecuador crime has some positive aspects.

Ecuador crime typically is not violent. See the worst 50 countries for murder. Mexico is 6th, Costa Rica 19th, The US – 24th, Finland – 30th, Portugal – 33rd, Malaysia – 34th, South Korea – 38th, France – 40th, Australia – 43rd, Canada – 44th, Italy – 47th, Spain – 48th, Germany 49th.

Ecuador is not in the top 50. Statistically your odds of being murdered are higher in all the countries above.

Metals detectors are not required at Ecuador schools.

There have been no shopping center shootings!

Yet here is the decision everyone must make. Do you want to travel or not? When you visit unfamiliar places you increase your risk of being a crime victim.

To reduce risks when you travel see ten safety rules

We hope to help you avoid crime in Ecuador by taking you to places full fo color fun and laughter like this parade in Cotatacahi.

Ecuador-fun-people

Gary

Learn how to learn more about Ecuador her

Join us Oct 14-18 for our Ecuador Import Export Tour
https://www.garyascott.com/catalog/ecuador-import-and-export-tour

Visit Ecuador markets.

Ecuador-vendor

We still have space in our November courses and tours.

Nov 7-9 International Investing and Business Made EZ Ecuador
https://www.garyascott.com/catalog/international-business-made-ez-ecuador

Nov 10-11 Imbabura Real Estate tour
https://www.garyascott.com/catalog/ecuador-real-estate

November 12-15, 2008 Ecuador Coastal Real Estate Tour; Quito Real Estate Tour
https://www.garyascott.com/catalog/ecuador-coastal-real-estate-tour

Small Business Starts


Small business starts are important because your own small business is one of the best ways to fight inflation and hard economic times. Yet the most frequent question I hear about starting small business is “where and how should I start my small business.

The answer to this begins with two questions:

Small business starting question #1: How much time do you have to start a small business.

Small business starting question #2: How much money do you have to start a small business.

The answers are often related but in the end most people are in one of five
positions.

Small business start up position #1: Plenty of time and enough money to live on and start a business.

Small business start up position #2: Plenty of time and enough money to live on but not enough to start a business.

Small business start up position #3: Plenty of time but not enough money to live on (or start a business).

Small business start up position #4: Enough money to live on and start a business but no time.

Small business start up position #5: No time and no money.

Interestingly enough position #5 is safest (not much to lose) and position #1 has the greatest risk for small business start ups. Small business start up position #1 suggests some previous success and or inherited money. Either position can make one over confident and encourage, “full steam ahead!”

Full steam is not often the best way to begin a small business. I always recommend that people start small…limited steam in a very directed way. Open the small business stopcocks nice and slow.

Small beginnings are nature’s way. Most businesses start with a learning curve. During the beginning and in the initial learning period, it is essential to remain small as you err. Once lessons have been learned, the business can grow using business evolutionary cycle.

The small business evolutionary cycle is

#1: Get an idea

#2; The idea leads to enthusiasm.

#3: The enthusiasm leads to education.

#4: The education leads to action.

#5: The action leads to profit or loss but also more ideas.

The cycle repeats and this is the way that businesses should grow.

My businesses never really started in a full steam ahead mode. In a way I have always had one business, but it has morphed again and again, each new development being financed by the old. Each new development has always been (to Merri, me and we hope our clients) better.

I began as a Prudential Insurance agent selling door to door in Portland Oregon.

That beginning was financed by working in a gas station while I learned and trained to sell.

Selling insurance in Portland led to selling American investments door to door in Hong Kong. This was really the only full time jump I made. I nearly starved! And I learned. Yet even then I was still selling door to door…with the same tactics just for a different product in a different place.

I learned (as I starved) that the different product and place required different tactics.

This started the evolution and due to traffic congestion in HK, I began putting on seminars to sell US investments more efficiently. Then I created a small newsletter to keep in touch with the investment salesmen I hired.

small-business-sales-team

These were the salesmen i motivated with my first newsletter. That was a good idea and both part time efforts (the newsletter and seminars) were financed originally by my door to door selling of US investments!

But this approach was flawed. In the early 1970s, I was living in Hong Kong selling US mutual funds. This was when the Hong Kong stock market first began to emerge. Share prices in Hong Kong rose and rose. This was also the first time the U.S. stock market had collapsed in twenty years.

To be frank U.S. investments then, sucked. Hong Kong investments were good.

That idea changed my business. I began writing newsletters and reports about Hong Kong investments for Americans and how US investors could make more money abroad.

This was a good idea but ahead of its time so I did this part time and financed the new effort with my existing business…selling US investments in Hong Kong.

As my income grew from the new activity (selling HK investment ideas to Americans) I saw investment opportunity beyond Hong Kong. I moved to London. There was more international investing knowledge and information available there. I began selling reports about investing in gold, silver, Swiss francs, Australia, England and Germany.

I tried many business ideas in London. Here is a shot that was in a London daily, part of a PR  program to help sell square inches of Graceland after Elvis died. That was a really bad idea.   I am very glad  I started that one small!

small-business-in-london

This move to London was financed by selling HK investments to Americans.

Then I saw other Asian countries beginning to have great potential. I began researching there and as phone rates dropped and the fax came along, I saw that I could get out of the big city and moved to Naples, Florida, then a sleepy fishing village… closer to my North American clients. My seminar business boomed financed by my London business.

Then in the early 1990s saw potential in Latin America and in Smalltown USA.

I began researching and traveling in these places part time…financed by my existing efforts in Florida.

Finally as Naples became crowded, because of the Internet, we were able to move to isolated farms both in The Blue Ridge and in Ecuador and still have access to any international investment business information and stay in touch with my clients.

My internet business began in a small way as well…as a supplement to my print business…not earning much…until gradually it became the only way we do business.

Each step in our business growth has been a gradual evolution financed by the last.

Each time we began the new part of our business in a small way, crept along and learned until it grew and took over to become our core.

Today our business on the farm and in Ecuador create the largest part of our income.

What’s next?

I do not know. You’ll find out as I do and my business evolves once more.

What I do know is that whatever ideas emerge the ones that enthuse me will be the ones I follow…in a small way. I will test them…in some small way…not expecting to make enough to live on. Some will survive ad grow. Others will be discarded.

Whatever your time and money position, you can begin your own business by looking for ideas that create enthusiasm in you. When you feel excited in a field start to educate yourself. Learn about the idea and then test small business ideas. Use a little time and or capital. Try…read…ask…learn. Tkae small risks.

After that if you still feel good…go for it in a larger way and let your small business evolve from there.

If you have little money start a business that uses your time and energy (as i did as a salesman) as your capital.

The is the era when small is beautiful so until next message may your success to begin be fulfilling but small!

Gary

We offer two emailed courses to help you start a small business.

International Business Made EZ

Self Fulfilled – How to be a Self Publisher

Readers are proving again and again that having a small business is smart! One reader just shared this note:

Gary: This is Randy. I have been a subscriber of your newsletter for a long, long, time and I LOVE it. I just thought that I would chip in a comment about your comments about Labor as we are approaching Labor Day. I thought for years that Manuel Labor was a Latino and then I got involved in creating my company and found out differently. That is supposed to be a joke. Seriously, we started FFI November 2, 2005 and we have grown to over $200,000,000. And are shipping our products to over 200 Countries and territories and we are primarily an Internet company doing eCommerce. I agree with you that if one is doing something they truly love, it is not considered work, but a labor of love. My wife (Wendy) and I have traveled to over 81 countries during the last couple of years speaking to people about our products, and expressing our passion for what we do, and today we have over 200,000+ people selling our products face-to-face and the rest of our sales are on the Internet. Anyone that has a determination to succeed and have enough knowledge of Internet marketing can distribute their products.Keep up the good work of delivering your message with no hype, but telling the truth. Your Friend, Randy”

We offer seminar courses to help you start your own small business as well .

International Investing and Business Made EZ North Carolina October 3-5

Ecuador Ecuador Import Export Course October 14-18

This export course has been working well. One reader just wrote:

“Good Evening Gary/Merri/Steve, Speaking of a small business, we have opened All American Enterprises, LLC (AAE) which includes selling products from Ecuador at a trade days operation about 200 miles East of Dallas. I don’t know if we are off to a “bang” but we are sure having fun. See attached pictures to include our model, Consuella.

small-business-ecuador-exports

Please tell Mary we have made profit on our inventory and the big sellers are alpaca silver jewelry and Octovalo alpaca ponchos. We will visit with Steve at the end of September and would like to restock to include blankets/ponchos/throws from Hilana. Does Mary have the contact for wholesale Hilana products? Say hi to Ma and the cats, too. Bob and Dot”

small-business-from-ecuador

International Investing and Business Made EZ Ecuador
November 7-9, 2008

See discounts for couples attending more than one course.

Here is another comment from delagtes who attended the import export course

“Hi Gary & Merri. Our business of selling Ecuador products is still going well. We are now appointing Agents across Australia and should have the whole country covered by mid-August. Our initial shops continue to re-order on a regular basis. The best shops seem to re-order every two weeks.We have also received inquiry to provide buying services for people in a few other countries. So we will be seriously thinking about starting our own brand name to market globally. If successful, it should help many Ecuadorians.We have appointed a national distributor for our Andes Artisans products (www.andes-artisans.com) so we will be leaving Australia to live in Ecuador soon. Thank you again John & Dixie.”

Ecuador Ecuador Import Export Course October 14-18