Tag Archive | "good value investments"

Inflation Rips


RIP… Boomer pensions, investments and savings. 

But we cannot.  Boomers cannot rest because inflation is about the rip.

Numerous messages at this site have warned about the fact that the “lies, damn lies and statistics” reality has been in effect for some time.   Inflation, for a large part of the population, is much higher than statistics show.

Anyone who shops for their own food (as I do) can attest to this fact.

Now even the Fed is admitting this truth and also admitting that there is nothing they can do about it.

In a monetary world gone crazy, the Federal Reserve Bank, as much as many may hate it, was the last line of defense against irresponsible politicians who create inflation.

pixabay

There has been a lot of inflation in the products and services that matter most to a majority of society, such as food and housing, even though this monetary reality has been tamped down in several ways.

First statistics have been manipulated to make it look like there is less inflation. For example if steak became more expensive for the common man, it was replaced in the Cost-of-Living index with hamburger or some lower cost alternative.

This creates life style erosion inflation. Prices do not rise so much.  Choices just become more limited or quality drops.  We can live for the same price… just not as well.

Second, we gained an enormous productivity bump with cell phones and the internet. Inflation comes when money supply expands past productivity… so this bump helped keep costs down… but again we paid a price in loss of freedom. When the phone was tied to a cord, an was free. Now wherever we go… whenever… work can get in touch.

Third, energy costs dropped due to shale oil recovery tactics.

A “Peak Oil” crisis that would push energy prices into higher zones did not  appear.  Instead the US reclaimed its position as a major oil producer and  even exporter of oil.   This is terrible for the environment in the long term and we’ll probably pay huge prices down the road… but for now, this helped temper inflation.

Fourth, the 2009, 2010 quantitative easing helped businesses keep going and prepare for the greatest economic boom we have every seen.  This surge in wealth was fueled by the transition from a wired, physical reality to an cloud based, virtual reality led by tech companies like Amazon, Facebook, Google, Apple, etc.

Fifth the way employers hire morphed drastically.   The man in the grey flannel suit is gone!  During the last decade Amazon.com became the 2nd largest employer on earth chasing after Walmart, the largest.  This was a signal of a huge social economic transition, but one of the biggest inflation fighting difference is the way Amazon and WalMart (and other tech companies employee people… without pensions…. without health care…. without job security… as part time workers.

This new hiring technology and the gig economy lowers the cost of living, at the price of income and wealth equality.  The few get richer as more move towards the poverty line. This may be why the “Black Lives Matter” demonstrations and riots have so many white supporters in places like Portland Oregon where only 6% of the population is black.

The unrest is more about growing wealth inequality in all races, rather than cultural inequality.

Sixth, the gig economy, AIRBNB and Uber are great examples, shifted trillions of dollars in
homes and cars and other personal assets into commercial assets.  AIRBNB for example added over a million hotel rooms into the world without a penny of construction investment.  Uber likewise created an incredible global fleet without spending a penny on automobiles. Think about what these additions did to keep hotel and taxi costs down. These are hug anti inflation events.

Seventh the Fed kept interest rates low so businesses could produce products and services for less.  Regretfully these low rates also let politicians borrow wantonly so they could push now problems into the future and accumulate huge piles of government debt.

Many of these one time inflation dampening events have taken place. There is not much left to stop runaway inflation.  The Fed’s ability to raise interest rates is (or rather was) the last line of inflationary defense.

The Wall Street Journal article , “Fed Weighs Abandoning Pre-Emptive Rate Moves to Curb Inflation”, (1) shows that even this protection is now gone.

The article says: Central bankers look to change long-running strategy to encourage lower rates, shift unemployment-inflation dynamic.

The Federal Reserve is preparing to effectively abandon its strategy of pre-emptively lifting interest rates to head off higher inflation, a practice it has followed for more than three decades.

Instead, Fed officials would take a more relaxed view by allowing for periods in which inflation would run slightly above the central bank’s 2% target, to make up for past episodes in which inflation ran below the target.

“It would be a significant change in terms of how they are thinking about” the trade-off between employment and inflation, said Jan Hatzius of Goldman Sachs. “A lot of those things look very different now from the way they looked a few years ago,” he said.

The change being contemplated now is a way of essentially telling markets that rates will stay low for a very long time. Markets have likely already picked up on this change, given the continued declines in long-term interest rates.

The Fed formally adopted the 2% inflation goal, a level it regards as consistent with healthy economic growth, in 2012. At the time, short-term rates also were pinned near zero. But central bankers, economists and investors still expected those rates to return to more normal levels of 4% or so once the economic expansion matured.

Inflation and low interest rates will help stock markets remain strong.  This is good for investors, if they have time to let their investments grow.

The US stock market is likely to see the “2020 Decade” as one of high volatility.  Investors who have to draw on their  investments for income are at risk of loss if they have to draw down on their investments during times of market correction.

One answer to this problem is to invest in equities that fight inflation and pay higher dividends.

Gary

Add Safety, Profit & Get Paid Double

The next four years will be a period of high overseas stock growth.

The chart below shows the last 26 years of real-time forecasting by the global equity analyst we track to make our portfolio decisions.

The analyst is Keppler Asset Management and the index they create The KAM Equally Weighted World Index is 15.4% below the value that the analyst forecast four years ago in September 2016.

The chart shows how in the past, two and a half decades there have been four opportunities (red Xs) when the entry levels in global markets were below or around the lower valuation band.  In the previous three low points like this, there has always been the highest growth and positive returns three to five years later.

keppler

 

So it’s good to know that if you invest in global stock markets overall, now, you’ll make capital gains over the next four or five years.

More importantly you get paid more income now!

Current markets have turned economic history upside down.  Normally bonds pay the highest interest rates and add safety to a portfolio.  Not in 2020.

This year equities have been paying a higher yield than bonds.

As of November 2020, according to Ycharts.com, (1)  AA bond yields are at 1.59%.

ycharts.com

 

The US MSCI Index pays a modest 1.68% as of November 2020 .  That’s a terrible yield, but better than the 1.59% you can get in AA rated corporate bonds.

Just because US stocks pay more than dollar denominated bonds, does not mean they offer the best income deal.  In fact US shares pay one of the lousiest average yields of the 46 stock markets we, via Keppler, monitor around the world.

Eight solid, top value stock markets (shown below) not only add diversification and the best long term profit potential, they pay more than double the average US yield.  They pay  3.57% compared to the US yield of 1.68%.

keppler

This is why my core stock portfolio consists of a handful of top value share ETFs and this position has hardly changed in five years.

Let me explain why this strategy adds safety, increases long term appreciation potential and pays almost double short term income right now.

During the past five years, I have been steadily accumulating the same good value ETFs.  I have traded only five times, so my trading costs, my fuss, fiddle and time spent have been kept to an absolute minimum.

I have been investing in iShare country ETFs.  Each one invests in the MSCI Index of one of the top value markets above.

My strategy protects against stock market volatility and yet has potential for the best gains long term from rising share prices by holding an equally weighted portfolio of the best value based country ETFs.

The Purposeful Investing Course uses Keppler analytics to track 46 stock markets around the world into determine which markets offer the best value.

Since no one knows what the future will bring, investing in value makes the most long term sense.

Plus Value ETFs are Safer

The people who dominate stock markets include a pack of thieves.  This fact has always been true.  We were recently reminded of this fact when Wirecard AG, one of Europe’s most prestigious companies, listed on Germany’s premier stock-market index, the Dax 30 fooled everyone including its top grade, longtime auditor, Ernst & Young GMBH.

The shares in German fintech company Wirecard AG (symbol WDI fell 63.74% as it filed for insolvency proceedings, after revealing that more than $2 billion in cash missing from its balance sheet was all a fraud.  The company’s market value fell to less than €500 million from almost €13 billion in a week.

Investors have seen this type of rip off again and again, really big scams from Enron to Bernie Madoff and these are just the tip of the iceberg.

Shares in stock markets are manipulated all the time.  Stock markets (in fact almost all types of markets) are led by sharks plain and simple.  Count on this fact.  This is the nature of the beast and the number one goal of many big businesses is to take as much of your money as they can to line their pockets.

In the Wirecard AG example many  thousands of investors have seen their hard work, their thrift, their security and hopes for the future disappear, even though they seemingly did everything right by investing in a blue chip, new era, high tech company.

A study of 92 years of investment returns shows that, despite the fraud and cheating and deceit, stock markets are still a good way to make your money grow… if you invest long term and diversify.

keppler

Our Purposeful Investing Course (Pi) strategy makes it harder for cheaters to grab your wealth because it’s very hard to manipulate an entire stock market, much less a dozen or so stock markets around the world.

Manipulators have a hard time tricking an entire market, especially larger markets.  If you get the best value country ETFs, your chances of long term profits improve.

Pi teaches an an easy, simple and effective approach to zeroing in on value because little time, management and guesswork is required.  You are investing in a diversified portfolio of good value indices.

Sticking to math based stock market value and country ETFs eliminates the need for hours of research aimed at picking specific shares.   Investing in an index is like investing in all the major shares of the market.  You save time because all you have to do is invest in the ETF to gain the profit potential of the entire market.

To achieve this goal of diversification the Pi portfolio consists of iShare Country Index ETFs managed by Black Rock, Inc.

Country Index ETFs are similar to an index mutual fund but are shares normally traded on a major stock exchange that tracks an index of shares in a specific country.  ETFs do not try to beat the index they represent.  The management is passive and tries to emulate the performance of the index.

A country ETF provides diversification into a basket of equities in the country covered.  The expense ratios for most ETFs are lower than those of the average mutual fund as well so such ETFs provide diversification and cost efficiency.

My developed market portfolio has been diversified into eight developed markets: Germany, Hong Kong, Italy, Japan, Norway, Singapore, Spain and the United Kingdom.

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

The ETFs provide higher income and incredible diversification for safety, plus the highest long term profit potential.

iShares is owned by Black Rock, Inc. the world’s largest asset manager with over $4 trillion in assets under management.

There is an iShares country ETF for most stock markets around the world.

Here’s how you can create your own good value strategy.

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

You also begin receiving regular emailed Pifiolio updates and online access to all the Pifolio updates of the last two years.  Each update examines the current activity in a Pifolio, how it is changing, why and how the changes might help your investing or not.

You also receive a 100+ page PDF value analysis of 46 stock markets (23 developed markets and 23 emerging stock markets).  This analysis looks at the price to book, price to earnings, average yield and much more of all 46 markets.

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

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

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

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $124.50 off the subscription.

Guarantee

Enroll in Pi.  Get the basic training, the 46 market value report and access to all the updates of the past two years, plus all new updates over the next year.

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

If you are not totally happy, simply let me know in the first two months for a full no fuss full refund.

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

Due to the COVID-19 pandemic we have cut the subscription to $174.50.  You save $124.50!

Then because this global recovery from the pandemic is going to take years, we’ll maintain your subscription at just $99 a year rather than $299.  Your subscription will be autorenewed in 2021 at $99, though you can cancel at any time.

Click here to subscribe to Pi at the discounted rate of $174.50

Subscribe to Pi today and you get a year’s subscription to Pi now, get the 130 page basic training, the 120 page 46 market value analysis, access to over 100 previous Pifolio updates, plus begin receiving regular Pifolio updates throughout the year.

Gary

(1) Ycharts.com corporate bond yields

wsj.com: Fed weighs abandoning pre emptive rate moves to curb inflation

 

 

The Benefits of Alternate Value


Want extra profit?

Invest in depressed assets that have alternate value.

Want extra security?

Live on land that supports your needs of water, fulfillment and food, but also allows you to connect with the modern, technological world.

Here’s where profit and security meet. Small farms in America. They are suffering from the worst farm slump in nearly 30 years.

For more than a decade, we promoted Ecuador farm tours because they offered special value. But we also always included Smalltown USA as offering extra value as well.

gary-scott-seminars

A seminar at our farm… creates an alternate value.

A few years ago as Ecuador prices rose, we switched to small America rural property.

The Wall Street Journal article “Supersized Family Farms Are Gobbling Up American Agriculture” (1) explains why small farms offer extra value.

The article says: U.S. growers are swallowing up acreage to survive a harsh agricultural downturn, squeezing smaller operations and transforming America’s rural economy.

COLBY, Kan.— Lon Frahm may represent the future of farming. Inside a two-story office building overshadowed by 80-foot steel grain bins, he points to a map showing the patchwork of square and circular fields that make up his operation. It covers nearly 10% of the county’s cropland.  When he climbs into his Cessna Skylane to check crops from the air, he can fly 30 miles before reaching the end of his land. At 30,600 acres, his farm is among the country’s vastest, and it yields enough corn and wheat each year to fill 4,500 semitrailer trucks.

Big operations like Mr. Frahm’s, which he has spent decades building, are prospering despite the deepest farm slump since the 1980s. Years of low prices for corn, wheat and other commodities brought on by a glut of grain world-wide are driving smaller American farmers out of business.

Farms with $1 million or more in annual sales—only 4% of the total—now produce two-thirds of the country’s agricultural output, the largest portion since the U.S. Agriculture Department’s census began tracking the statistic in the ’80s.

Another article: “The next American farm bust is upon us” (2)  explains further why there is growing value in Smalltown USA.

Shrinking roles in global grain market coupled with a strong dollar and higher costs for seeds drives U.S. farmers out of business;  over- flowing bunkers.

Small farms have alternate value when connected to the internet and can be used for recreation or specialized organic foods or as havens, instead of  traditional farms.

Take for example our farm in North Carolina.

When we purchased the farm its was valued as a subsistence farm.

Today, due to availability of low cost fiber optics broadband, it can be a base for a global business… (and is).  This can be a seminar site (which it has been)… a site for recreational cabins offered through AIRBNB (which it has been) or a place to produce high quality food that appeal to a holistic market.

rose mountain

rose mountain

Rose Mountain Butcher is a holistic butcher that offers produce and food products from 40 farms in our area. The trout come from our farm.

Growing numbers of outlets like Rose Mountain Butchers and farmers markets, like the Ashe County Farmers Market, create new outlets for small farms.

These outlets create alternate value.

Back Street West Jefferson

A great way to combine a healthy, productive, safe, low stress, enjoyable lifestyle is to spot assets with alternate values that are available at a discount.

When you spot the value and the alternative ways that assets can be used, you can gain a good value opportunity.

Gary

Live Anywhere – Earn Everywhere

How to Gain Extra Freedom – While Almost Everyone Loses Theirs.  Profit from post COVID-19 trends.

I invite you to join Merri and me in expecting the world to get better… to live and earn based on that expectation but…  to also prepare for bad times as well as good.

Just in case… the world goes sideways… we will still survive and prosper.

We do not give up anything much.  We can enjoy the good parts of the new economy, as we protect ourselves from what can be bad.

For example in my report “Live Anywhere-Earn Everywhere”,  you’ll see how to make your dining room table bring you more control, more time, more income and more freedom.  After all, what can be more accessible than a dining room table?

ecuador-banks

Dining room tables we worked from (and we also sold the tables for a profit).

You’ll even learn how to turn dining room tables into income and tax deductions as we have with these dining room tables we build out of local wood.

Let me be clear.  I expect that the world will get better, at least for the few who adapt and avoid the dangers that the changes from the COVID pandemic will bring. 

The wealth of the world, albeit with inequality, will continue to grow.  This collapse of the global economy will bring an incredible new opportunity for those who know what to do.  Thes profit making avenues offer enormous income potential and even work well in disaster scenarios.

Let me provide one simple, concrete example.  Ginseng.

This is a great health root.  The demand is growing especially in China.  At times good dried Ginseng sells for $1,000 a pound!  This is an incredible and easy crop to grow.   The less care you give it, the more valuable it can become.  Yet if everything goes south, the health qualities will be good to have and make it an excellent barter item.  Once you know what to do with ginseng, it’s easy to grow in your back yard.

Even better one of the best kept secrets is that ginseng and 125 other medicinal crops that are currently unsustainable but can be grown on land  that is extraordinarily cheap.

goldenseal ginseng

Ginseng we grew in our back yard.  I know about growing ginseng through experience and explain why and how in the report “Live Anywhere – Earn Everywhere”.

Loquats are another example of an easy to grow crop that help promote natural health.

loquats

Here I am by one of the many loquat trees at our Florida farm.

Loquats are a great fruit for making jam and such, but the loquat leaf has amazing medicinal qualities.  Its is a registered medicine in China and due to its anti viral and respiratory system enhancing qualities has an especially  growing demand right now.   The images below from Amazon.com show that the leaves sell for about a dollar per leaf!

I have many trees on the farm but started growing loquat seedlings last year.

loquat

Loquat leaf tea has become really important during the pandemic due to its respiratory strengthening qualities.

I have been drinking a lot of home made loquat leaf tea during the pandemic.

The report “Live Anywere-Earn Everywhere” shows specific places that reduce your living expenses, easily increases your income, makes you smarter, healthier and provides tax benefits as well. 

There are specific places where property is especially inexpensive, now because previous owners do not know about the special qualities created by the pandemic.

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

Here are some of the experiences this report shares:

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

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

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

  • Learn about the magic of the north facing slope.   This is where Merri and I live almost half of our time.  North facing mountain land is some of the least expensive in the world but has hidden values that the report reveals.  There is a lot of this land and a lot of hidden value that you can tap.   When we bought our Blue Ridge farm (252 acres) I mentioned this to my Swiss banking friend.  “That’s bigger than the entire village where I live!” was his response.  Smalltown USA offers a last chance at having a lot of space.  By living in two Smalltown places there are enormous tax advantages as well.  One step in the system saves Merri and me over $28,345 in taxes a year.

The report shows how to buy cheap north facing slopes and create an income producing tiny home for $29,000 or less.

If you lack the $29,000 to invest, a start up using tents is even less.  These are tipis we put up at our farm before we built our first tiny home.  Learn how they can create tens of thousands of dollars in income for you.

Fwd: gary-scott-tipis

  • See ways that small businesses like Tipi rentals can be enhanced by the pandemic but also create BIG tax savings as well as extra income.  For more than 30 years Merri and I have enjoyed a strong six figure income, some years more, in the millions.  Yet there have been very few years when we had to pay federal income tax.  The report lays out a three structure program and how it is used when you are in school (up to age 30), then from 25 to 50, 50 to 70  and beyond 70.   Learn why Chapter C corporations and pensions can be better than the normally recommended Chapter S.  See how new mileage log rules gives you a possible opportunity to increase your tax deductions using IRS Form 4562.  Using a two-vehicle strategy you can gain $12,976 in new deductions even if you do not have to drive one mile further or spend one additional penny on your car.
  • See how a greenhouse can help you eat better and be healthier, plus provide income and a tax deduction and be funded by a government grant.

gary-scott-farming

Our North Carolina greenhouse.

gary scott greenhouse

Our Florida greenhouse.

  • There are similar benefits from having a second home office defined in IRS publication 463 and IRS publication 587, even if your desk is a dining room table.  The report also shows how your dining room table can become an actual income producer as its creates a huge tax deduction at the same time, not to mention a great place to eat, work and lay out plans for a brighter, safer more lucrative and enjoyable future.
  • Living in this environment is also healthier, economically as well as physically.  You’ll see in the report how researchers at Harvard found an amazing correlation between living in conditions found on north facing slopes, longevity and mental health.  The researchers were quite surprised by this strong correlation that also extended into mental health.  In addition to feeling better, reducing stress and having more Joie de Vivre the places outlined in “Live Anywhere-Earn Everywhere” can help you avoid hospitals, high cost disease management (aka health care) and BIG pharma while providing an investment opportunity in three plants that have some of the fastest growing demand in natural health care.  These three plants are just one of seven business opportunities that can create multiple streams of income.
  • How changes in cell phone and internet technology eliminated the need to be in one place.   An old law that creates new opportunity for small business in small towns is available to everyone.
  • Use the specific search and purchase guide.  Construction plans are included that show how to generate first tier income that leads to five, second tier avenues of earnings.
  • How to pay off old debt and avoid new debt by avoiding spurts and embracing value. 
  • Learn seven skills that will always have value.  See how to turn First Aid, medicinal plants, hospitality, food, trees, alternate energy and writing to sell into everlasting, low stress wealth.

merrily farms

This pond we created at our farm brought us pleasure but also helped create a safe, healthy food supply, extra income and a tax deduction as well.

My Guarantee

This may be the most important report I have written in 50 years.  The information is certainly the most urgent.  Do not delay.  The risks are upon us right now and you’ll understand how the final steps of the alliance are taking place as you read the current news.

To take any risk out of gaining this urgent information with my full satisfaction or money back guarantee.  If you are not totally happy, simply let me know.  I guarantee you can ask for a full refund any time within 60 days and I’ll refund your payment in full, no questions asked.

You can keep the reports as my thanks for ordering it.

Buy Live Anywhere, Earn Everywhere Report  $39.99

(1)  www.wsj.com: The family farm bulks up

(2) www.wsj.com: The next American farm bust is upon us