Tag Archive | "Malaysia"

Malaysian Bond Potential April 2014


ENR Asset Management who look after my personal portfolio held in Copenhagen sent the following recommendation for bond buyers.

Buy: BUY 3.26% Malaysia 01.03.2018

Malaysia offers a robust growth case with GDP (gross domestic product) expected to be north of 5% in 2014. Moody’s has in November 2013 furthermore lifted the outlook to positive on the basis of the fiscal initiatives and reforms which the government presented at end-2013, including the prospect of reducing the budget deficit to 3% of GDP in 2015. The current account surplus is presently around 11.7 billion Malaysian ringgit or 5.3% of GDP.

The government has cut the corporate tax rate to 24% from 25% and has announced further reductions and cuts in personal taxes in the wake of the introduction of the goods and services tax. These are generally initiatives which are heading in the right direction and which make Malaysia more pro-business and contribute to the consolidation of the public finances.

Malaysian Chart

We expect Malaysia to benefit from the global cyclical recovery. The robust growth case, where exports also contribute to growth, will be supportive of the country’s current account balance. We are already seeing strong growth above 5%, solid current account surpluses and low unemployment currently at 3%.

The political initiatives to reduce the budget deficit and economic reforms and a possible upgrade of the credit rating from Moody’s should be supportive of the currency. One of the largest risks for the ringgit is the major foreign exposure in Malaysian government bonds and the effects of higher US yields. The risk is that investors suddenly abandon Malaysia due to rising US yields and lower global liquidity.

The bond, currently priced at 98.93 and maturing March 1 2018, offers a yearly return in Malaysian ringgit of 3.55%.

Buy 3.26% Malaysia 01.02.2018 ISIN: MYBMI1300025 S&P rating: A

For questions about ENR Asset Management contact Thomas Fischer Thomas@enrasset.com

Learn how to join Merri and me with ENR Asset Management in Montreal.

Learn about the Multi Currency Sandwich here.

To see ENR Asset Mangement’s website click here.

How to Gain With Multi Currency Value Investments

Old Accord Creates New Profits – Multi Currency Investments.

Earn more with multi currency stock market breakouts.

Improve Safety – Increase Profits

Learn how to improve the safety of your savings and investments by selecting good value and diversified investments in a multi-currency portfolio.

Few decisions are as important to your wealth as the value of the markets and currencies you invest in.  This has been our area of expertise since the 1970s and we have worked with and advised some of the largest currency traders in the world.

Gain Protection First – Against the Dollar’s Purchasing Power Loss.  In 1913 the The Federal Reserve Act created the Federal Reserve Bank to protect the purchasing power of the US dollar, which has since lost about 94% of its purchasing power.  Here is its price compared with gold since 1900.

priced in gold

Dollar chart from pricedingold.com (1)

The Fed has let the dollar lose most of its strength plus has allowed interest rates to fall so low, that safe investments cannot keep pace with the drop in purchasing power.

multi-currency-chart

Chart from Grandfather Economic Report (2)

Many investors have forgotten about the risk of a falling dollar because the greenback has been strong for the past five years.  This temporary dollar strength came after the great recession of 2009 just as there was temporary dollar strength after the great recession of the 1980s.  Then about six years after the recession, an agreement was made by major governments to weaken the dollar.

There was a severe global economic recession affecting much of the developed world in the late 1970s and early 1980s.  The United States and Japan exited the recession relatively early, but high unemployment would continue to affect Europe and the UK through to at least 1985.  As a consequence between 1980 and 1985, the US dollar had appreciated by about 50% against the Japanese yen, Deutsche mark, French franc and British pound, the currencies of the next four biggest economies at the time. Then the governments reached an agreement and exchange rate values of the dollar versus the yen declined by 51% from 1985 to 1987.

Now the world is again in the same place.  The recession is over.  Europe is a bit behind in recovery and the dollar is higher than before the recession.

There is no reason for the greenback to be  strong.

The agreement in 1985 was called the Plaza Accord.   Over just two years the greenback dropped nearly 50% versus other major currencies.  The next accord will generate great profits for those who know what to do while it ruins the purchasing power of dollar back investments.

The strong US dollar and low interest rates have created one of the biggest stock and multi currency breakout opportunities in history.  Learn how to create a plan to profit from multi currency shifts ahead.

One reason for the potential gains is that stock markets and currency values are cyclical.  Due to low interest rates created by the 2009 economic downturn, the US and a few other equity markets have risen to some of their highest prices, ever.  These markets offer very poor value now.  The steep valuation creates incredible profit potential but also hides some enormous risks.  Learn how to develop an investing strategy based of earnings, cash flows, dividends and book values to increase potential for profit and reduce the risks.

Next Extra Profit Created by Value Breakouts

Over the history of US equity markets, the  price of overall markets have risen about 9.1 percent, respectively, compounded annually.  Yet over more than a hundred years of stock market activity,  a majority of the profits have come from just a very few dramatic breakouts.

Equity markets are ruled in the short term by emotions that create unpredictable ups and downs.  Numerous fears of defaults, worries of double dip recessions, high unemployment, concerns about fiscal cliffs, hold investors back.  Yet global population growth and advances in production and prosperity are relentless economic fundamentals that increase value.

When fear holds back a a fundamentally rising value, rising profit potential grows.  Values increase as prices stagnate.  Then markets break free and rocket upwards creating wealth, prosperity and growth.

Find out which breakouts are likely to take place next.

Stocks rise from the cycle of war, productivity and demographics. Cycles create recurring profits. Economies and stock markets cycle up and down around every 15 years as shown in this graph.

stock-Charts

The effect of war cycles on the US Stock Market since 1906.

Bull and bear cycles are based on cycles of human interaction, war, technology and productivity.  Economic downturns create war.

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

Learn how the Cyber War (WWIV) may change the way we live and act and how this will affect currencies and investments.

Learn:

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

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

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

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

keppler asset management chart

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

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

Learn how much leverage to use.  Leverage is like medicine, the key is dose.  Buffett leverages his portfolio at a ratio of approximately 1.6 to 1.  This rate of expansion by the way is called the “Golden Ratio”.  It is a mathematical formula that controls the growth of most natural things; trees, the shape of leaves, the spiral of shells, as well as the way economies and societies grow.

We’ll sum the strategy, how to leverage cheap, safe, quality stocks and for what period of time based on your circumstances.

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

Enjoy investing more with slow, worry free, good value investing.  Stress, worry and fear are three of an investor’s worst enemies.  These are major foundations of the Behavior Gap, a trait exhibited by most investors, that causes them to underperform any market they choose.  The behavior gap is created by natural human responses to fear.  The losses created by this gap grow when investors trade short term under stress.

Learn how to put meaning into your investing by creating profitable strategies that combine good value investments with unique, personal goals.

Learn how to span the behavior gap.  Behavior gaps are among the biggest reasons why so many investors fail.  Human evolution makes fear the second most powerful motivator.  (Greed is the third.)  Fear creates investment losses due to behavior gaps.  Fear motivates us more strongly than desire.  By nature investors are risk adverse, when they should embrace risk.  Purpose is the most powerful motivator,  stronger than fear and greed.  One powerful way to overcome the behavior gap is to invest with a purpose.

Combine your needs and capabilities with the secrets and the math of our good value model portfolio.

Share ideas about my good value portfolio.  My personal investment portfolio comes from a continual analysis of international stock markets and a comparison of their value based on current book to price, cash flow to price, earnings to price, average dividend yield, return on equity and cash flow return.

Markets included in this portfolio are:

• Norway
• Australia
• Hong Kong
• Japan
• Singapore
• United Kingdom
• Taiwan
• South Korea
• China

These markets have been chosen based on four pillars of valuation.

• Absolute Valuation
• Relative Valuation
• Current versus Historic Valuation
• Current Relative versus Relative Historic Valuation

Learn how to use Country ETFs to easily construct a diversified, risk-controlled, equally weighted representative country portfolios in all of these good value countries.

To achieve this goal my portfolio consists of Country Index ETFs that track an index of shares in a specific country.  These country ETFs provide diversification into a basket of equities in the good value countries.  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.

This is an easy, simple and effective approach to zeroing in on value because little management and guesswork is required.  You are investing in a diversified portfolio of good value indices.  A BUY rating for an index does NOT imply that any stock in that country is an attractive investment, so you do not have to pick and choose shares.  You can invest in the index which is like investing in all the shares in the index.  All you have to do is invest in an ETF that in turn invests passively in all the shares of the index.

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

The Test for Low Cost Trading

Research put every part of this portfolio in place, except knowing the best, easiest and least expensive way to buy.  A search for an optimal way to buy and hold boiled down to two methods.  One tactic to test was to use a unique online broker that appeared to offer the lowest cost deal.  The other approach was to use a community bank in Smalltown USA.  The small town bank that I use looks after my 401K trust account and their service is first class.  The benefit of small banks is that they still treat us as a human beings (instead of a number) and when we need, it’s easy to go right to the top to answer a question or get a problem resolved.  There are no call centers and the bank and the person looking after my account is just around the corner.

I created a test to see which offered the least expensive service.

Working with my banker in Smalltown USA,  I created two accounts, one at the online broker and the other at the bank. I placed $40,000 in each.

I set up the order for the country ETFs online, while my trust manager set up orders for the identical amounts of the same shares in his system.  Then we got on the phone, coordinated our timing and on a count of three each pushed the button “BUY”.

The results of this test  show how you can gain on any purchase of country ETFs.

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

Save $468.90 If You Act Now

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

ecuador-seminar

Triple Guarantee

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

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

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

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

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

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

Subscribe to Pi now, get the 130 page basic training, the 120 page 46 market value analysis, access to over 100 previous Pifolio updates, the “Silver Dip 2017” and “Three Currency Patterns For 50% Profits or More” reports, and value investment seminar, plus begin receiving regular Pifolio updates throughout the year.

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

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

Gary

 

Gary

(1) Dollar chart from pricedingold.com

(2) Grandfather Economic Report

 

 

 

 

International Investing Trick


Here is a global diversification trick that may do well in the likely global economic scenario ahead. Buy good value shares internationally as markets dive during the summer dip.

In a moment we’ll look at some Ecuador health ideas… first the investing trick.

Global equity markets have been in a bear market rally for six months but are now hitting the summer blues due to seasonality.

Share prices will probably drop now. Chances are there will be a strong global equity slump at least through October 2009.

This will create extra value in equity markets and provide good opportunity to pick up high value long term.

The bear market is likely to carry on until 2012-13, but good value shares acquired during dips are more likely to spike early and have extra potential after the bear ends.

Now through October 2009 could be a good time to invest in high value shares for long term appreciation.

But which shares… in which markets?

One way to approach this is to look for extra value created by inefficiencies in markets…to find markets where the values are best.

Statistically this is the best way to be absolutely sure of the best long term returns.

There are numerous investment managers who use very strict valuation criteria (usually based on dividend yields, cash flow, price earnings) to spot the best value markets.  They then try to apply similar criteria to select good value shares in the good value market.

The next goal is to decide how much should be weighted in major market and how much in emerging markets.

Here is a comparison of the Morgan Stanley Major Market versus Emerging Market indices.

The MSCI World Index is a market capitalization weighted index that measures the equity market performance of developed markets.  It includes 23 developed market country indices : Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.

The MSCI Emerging Market Index includes Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

MSCI Indices performances.  Total per annum return over:

Major                            Emerging
15 years    4.10%                   5.41%
10 years  -3.85%                   9.11%
5 years    -2.77%                  11.16%
3 years   -10.81%              -00.17%
1 year      -20.81%             -27.53%
3 mos.      14.30%               27.53%

Regardless of the time frame observed,  the emerging equities almost always seriously outperformed major markets… but as a class they also dropped further in the 2008 downturn.

Here is a year-on-year comparison for the past five years.

Major                   Emerging
2003  10.74%           29.63%
2004    6.46%           16.51%
2005   26.17%           54.41%

2006     7.40%          18.23%

2007     -1.66%         25.71%
2008   -50.30%      -37.64%
2009      5.39%         34.79%  3 months

This history suggests that emerging markets deserve a substantial ranking.

However before becoming too aggressive in over weighting emerging markets, we have to keep in mind two thoughts.

First economic thought. The last 15 years has been a catch-up era when the investing world caught on to the idea that emerging markets offered great opportunity.

Second economic thought. A great deal of emerging growth came from debt financed exports to the developed world. This leaves emerging economies holding huge amounts of debt for customers who may not be able to repay the debt nor continue to buy the same volume of goods as before.

The easiest way for investors to invest in good value during dips is via a value mutual fund.

You can select a value major market fund, a value emerging market fund or a value diversified fund.

The benefit of a value diversified fund is that the professional manager decides how much to weight in emerging and major markets.

For example I just sent a lesson to our multi currency subscribers that showed a US traded international diversified value fund that has risen 36.08% in the past quarter ending June 30, 2009.  This fund is 86% in major markets and 14% in emerging markets.

Learn how to read about this fund as a multi currency subscriber.

The most valuable asset we can have in tough economic times is good health. This is why we studied Ecuador health ideas at our June tour.

Cotacachi is considered sacred by the shamans… a place of wonderful mountains that ring the valley.  This is Mt. Cotacachi to the west.

ecuador-shaman-recap

Mt. Imbabura to the east.

ecuador-shaman-recap

The valley is surrounded by mountains like these twin peaks…

ecuador-shaman-recap

creating wonderful, mystic  sunrises.

ecuador-shaman-recap

The first afternoon of the tour we visited La Mirage Spa and the Shamana Estella.

ecuador-shaman-recap

She began a theme that the many shamans we visited confirmed.   She said that the three keys to better health, increased longevity, more energy and fulfillment are good nutrition, proper exercise and good sleep.

The purpose of the Ecuador shamanic tour is to learn ways to unlock this healthy  combination in a natural low cost way!

The second day we joined Clemencia, the Shamana of Zuleta and drove 15 minutes from our hotel Meson de las Flores to Otavalo market where we visited the local food market…

ecuador-shaman-recap

filled with fruits…

ecuador-shaman-recap

vegetables…

ecuador-shaman-recap

flowers and …

ecuador-shaman-recap

herbs.

ecuador-shaman-recap

Here is the shamana speaking to the group with Merri and Mauricio translating.

ecuador-shaman-recap

We learned the importance of the herbs to make good teas that hydrate the body are cedron, chamomile and lemon verbena.

ecuador-shaman-recap

We learned how other herbs relax such as chamomile and valerian root. Plus we were told to boil lettuce in milk as a prebedtime drink for better sleep.

ecuador-shaman-recap

On the other hand, tea from cinnamon, paprika, cloves and ginger help reduce sluggishness in digestion and to speed the system when we need to be fired up.

ecuador-shaman-recap

You can read this entire report as an Ecuador Living subscriber.

Gary

We hope you’ll join us and enjoy Ecuador’s or North Carolina’s beauty soon.

ecuador-sun

Sunrise from Meson de las Flores.

July 24-26 IBEZ North Carolina

Oct. 9-11 IBEZ North Carolina

Or join us in Ecuador and learn more about living and retiring in Ecuador.

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

Oct. 21-24 Ecuador Import Export Tour

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 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

Multi Currency Investing Value in Change


Multi currency investing in change creates opportunity if you stick to value as well.

We have a great rooster here at the farm.   Beautiful.

Blue-Ridge-rooster

So now we also have some new chicks!

Blue-ridge-chick

What fun!

Watching them started me thinking about multi currency investing cycles and evolution.

If we look, we can see mankind and our multi currency, global economy evolve in ways that make sense.

Yet the shift are often hard to see.

On a recent trip Merri and I were stuck next to a TV (we do not have this at the farm) and the show was called Mad Men…about ad men in the 50s.  The smoking everywhere, three martini lunches, incredible sexual harassment, gender, religious and racial bias.

Wow, consider how much we have progressed!  Perfection now? No.  Better than before…I think so and we are making progress.

How can we spot, and position ourselves for change?

The economic doldrums of today will create the life styles of tomorrow. High rising costs of energy…food and essentials are creating a more spiritual world.

People are learning to look within for their fulfillment rather than relying on the shopping cart of the material market place to bring them joy.

They are more likely to spend more time in their church, mosque, synagogue or other place of religious worship than in Wal Mart.

Is this bad?

They may enjoy more friends, family and their social community.  Perhaps spend more time hiking and in nature or contemplating…slowing down to enjoy life more.

Think, if nothing, else of the environmental good.

How do we prepare our lives, our business, our finances for this new way?

During the 40 years I have been investing abroad, I have observed seven golden investing trends.

#1: 1970s Gold & Silver.

#2: Japan , Germany , Switzerland , England , Australia and Hong Kong .

#3: 1980s. The Tigers, Taiwan , Singapore Malaysia and South Korea , & Turkey .

#4: Early 1990s. South America (which led me to Ecuador).

#5: Late 1990s and 2000s. China , India and Eastern Europe .

#6: Invest in Real Estate Throughout.

#7: Bet Against the US Dollar Throughout

Now an eighth powerful green trend is in force.

How do we tap into this new economic wave?

Good value investments in water, alternate energy and environmental salvation offer incredible opportunity…if you maintain a good sense of value.

Like with all huge shifts, there will be scams and over priced investments.

An article by Alex Williams entitled, “That Buzz in Your Ear May Be Green Noise” touches on this when it says:

“DESPITE the expense and the occasional back strain, Mary Burnham, a public relations consultant in San Francisco, felt good about the decision she made a few years ago to buy milk — organic, of course — only in heavy, reusable glass bottles. For the sake of the environment, she dutifully lugged them back and forth from the grocery store every week. Cutting out disposable paper cartons, she reasoned, meant saving trees and reducing waste.

“Or not. A friend, also a committed environmentalist, recently started questioning her good deed. ‘His argument was that paper cartons are compostable and lightweight and use less energy and water than the heavy bottles, which must be transported back to a plant to be cleaned and reused,’ she said. “I have no idea which is better, or how to find out.”

“Ms. Burnham, 35, recycles religiously, orders weekly from a community-supported farm, buys eco-friendly cleaning products and carries groceries in a canvas bag. But she admits to information overload on the environment — from friends, advice columns, news media, even government-issued reports. Much of the advice is conflicting.

“To say that you are confused and a little fed up with the often contradictory messages out there on how to live lightly on the earth is definitely not cool,” she said in an e-mail message. “But, heck, I’ll come out and say it. I’m a little overwhelmed.”

“She is, in other words, a victim of ‘green noise’ — static caused by urgent, sometimes vexing or even contradictory information played at too high a volume for too long.”

Green is good but as mankind learns and evolves, there will be plenty of spin. There will be more than enough turmoil and confusion about what is best and what will succeed.

The true guide that can guide you through the noise that is created during new economic waves is value.

For example investments in wind power make sense. T.  Boone Pickens has just announced that he will make a huge investment in wind power.

An NPR article said: “After decades investing in oil, T. Boone Pickens is now pouring billions of dollars into what he calls America’s biggest wind farm. Pickens envisions putting up 2,500 turbines in Texas to generate 4,000 megawatts of energy — enough to power 1.3 million homes.

“Pickens says America is living with oil prices of more than $140 per barrel and gasoline topping $4 per gallon because it didn’t plan for its energy future.

“The mistake was made because we didn’t have the leadership that stepped up and said, ‘We cannot continue to import foreign oil,'” Pickens tells Steve Inskeep.

“Wind currently generates a relatively small percentage of the nation’s power, with most coming from coal, nuclear and natural gas.

“Pickens says he would like to use more wind for power generation and shift natural gas for use as a transportation fuel.

“We’ve got plenty of natural gas,” he says. “That’s the beauty of it. Natural gas is cleaner, it’s cheaper, it’s abundant and it’s domestic.”

“He notes that the United States, with just 4 percent of the world’s population, uses 25 percent of the world’s oil supply — most of it imported.

“Pickens says he wants the government to extend a production tax credit for wind power for a period long enough to encourage investment in the technology.

“The federal government recently issued a report forecasting that 20 percent of U.S. power generation could come from wind energy by the year 2030. Pickens says that’s too long from now — he’ll be 102 years old.

“This has to happen quicker than that,” he says. “We’ll be broke if you wait for this to all take place by 2030.”

Wind investments may be good, but not all wind investments all the time. Yet not all wind investments may be good.

Jyske Bank recently placed a sell recommendation on one of the most successful recent shares we have tracked, Vestas, the wind and turbine maker. See why here.

Green is good now. Paying too much for an investment, regardless of its color is never good.   Even when you ride the wave always keep your eye on value.

Learn more about how to spot good value investments at

Until next message may all you values always be good.

Gary

Join us, stay at our farm and learn about intuitive investing for Susan Rotman’s business intuition course.
Or join me with Jyske Global Asset Management to learn more about value investing.

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