Tag Archive | "singapore dollar"

Multi Currency Diversification, Speculation and Hedge Part II


Multi Currency Investments can be used to speculate for greater profit, but with increased risk of loss.

A study of the strengthened British pound shows three ways to gain from multi currency investments with diversification, speculation and/or a hedge.

Part One of this three part series shows ways to diversify currencies.

The British pound versus the Singapore dollar chart at www.finance.yahoo.com (1) shows the pound up over 10% in the last year. (click on image to enlarge).

singapore dollar pound chart

This creates a multi currency opportunity to speculate.  An example is to borrow British pounds and invest in Singapore dollars.   Multi currency speculation depends on value distortions. Look for a strong currency with weak fundamentals and a low interest rate.  Borrow that currency and invest into a weak currency with strong fundamentals and a  higher interest rate.

In this instance the British pound has many weak fundamentals. Britain’s trade balance in the last 12 months was a minus  -175.4 billion dollars.  The current account balance was a minus 111.7  billion dollars which is minus 3.7% of GDP.  The British government’s budget deficit was 4.9% of the annual GDP.  The interest rate on 10 year bonds is 2.98%.

Singapore’s fundamentals on the other hand were very strong.  The Singapore trade balance was +37.2 billion. The current account balance was +56.3 billion dollars or a whopping +19.4% of GDP.   The budget has a surplus of 0.7% and the ten year bond interest 2.37%.

In other words the pound is strong with weak fundamentals compared to the Singapore dollar with strong fundamentals.

This suggests that value supports a speculation involving borrowed British pounds invested in Singapore dollar investments.

Let’s take the Vanguard Singapore REIT (symbol VNQ) as an example.

vanguard spre reit

The Vanguard Singapore REIT seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of a benchmark index that measures the performance of publicly traded equity REITs.  The fund employs an indexing investment approach designed to track the performance of the MSCI US REIT Index. The index is composed of stocks of publicly traded equity real estate investment trusts (known as REITs). The fund attempts to replicate the index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

The January, to June 2014 year to date return on this REIT is 15.58%. The three year average return is  10.11%. the 5 year average return 22.91%.

Assuming the REIT rose another 15% and the pound Singapore dollar returned to its parity of six months ago, the profit would be over 25%, 15% from the REIT’s appreciation and 10% from the Singapore dollars appreciation.

This is the profit that would be earned if there was no leverage.

The pound loan rate is around 3%. Here is an example of how a leverage return would increase profits assuming an investment of 100,000 pounds in the REIT and an added borrowed 100,000 pounds invested in the REIT as well.

100,000 pounds borrowed creates 213,000 Singapore dollars. With the pound loan converted to Singapore dollars, it would create an investment of  426,000 Singapore dollars.

Assuming the REIT rose another 15%, the REIT the appreciation would be 63,900 Singapore dollars so the investment would be worth 489,900 Singapore dollars less interest of 6,390 or a balance of  about 483,510.  If the Singapore parity has returned to its parity of six months ago (1.90), the pound value now would be 254,478 pounds.  If the 100,000 pound loan is paid off, $154,478 is left or a 54% profit.  There would be fees of course, around 1,500 pounds but the profit would still be over 50%.

Of course if the Singapore dollar fell instead of recovered versus the pound and or the Vanguard Singapore REIT fell, then losses would be magnified.

Learn how to calculate leveraged losses or profits in our report Borrow Low – Deposit High.

One way to make leveraged speculation safer is to borrow more than one currency and invest in a portfolio of various currencies.  ENR Asset Management in Montreal has created a special portfolio of managed leveraged investing called the Viking Dynamic Account.  You can get details from Thomas Fischer at Thomas@enrasset.com

Speculation with debt accelerates profits and/or losses.  When value rationals are applied, and you find a strong currency with weak fundamentals that can be borrowed at a low interest rate, the opportunity for increased profits grow.

Gary

Multi Currency Value Investing Seminar

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

 

50 Year Investment Seminar

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

 

 

(1)  Current Pound Singapore dollar chart guard Reit chart

(2) Current chart Vanguard Singapore REIT

Three Multi Currency Forex Ideas Include Singapore


Three new multi currency forex ideas include Singapore.

jgam-headquarters

Jyske Global Asset Managers (JGAM) new offices. Address: H.C. Andersens Boulevard 11
1553 Copenhagen V, Denmark.

JGAM just selected three new multi currency plays for its managed Forex accounts and advisory clients.

These ideas include adding (via currency sets) the  Singapore dollar.  JGAM’s research partner believes, that China will make a soft-landing. Food inflation has peaked and China has also managed to cool down the real estate market.With Europe, China´s biggest export market, heading into a recession the Chinese authorities may ease measures to spur growth and the Singapore dollar (SGD) will lead an Asian recovery.

See more about this Singapore position and the three multi currency portfolio sets.  Subscribers can access these ideas at their password protected site. Click here.

Learn how to get a Multi Currency password here.

International Multi Currency Investments in Necessity


International multi currency investments in necessity are  a good way to store value.

water

This spring fed…

water

pond in our back yard is one reason we bought our North Carolina farm.

Last Saturday’s message Storing Wealth Made EZ looked at how stagflationary pressures have put almost every investment at risk and raised the question, “How can one store wealth in such an atmosphere?”

That message said: Traditionally Swiss francs and precious metals, especially gold and silver are the favored stores of wealth.  These investments should usually play a part in portfolios as insurance. 5% to 10% of a portfolio in metals and hard currencies is a general rule of thumb.

These hard assets were good ideas for speculation a year or two or even a few months ago.  Not when they are at all times highs though. History suggests that their high price puts their promise as a store of value at risk. In previous monetary corrections when the price of Swiss francs, gold and silver exploded upwards… the peak was followed by a harsh… extended downfall.

So I was not surprised to see that last week, before the collapse of Gold’s price, JGAM took profits on the wise gold positions that they had accumulated earlier in the year.

JGAM-Team

The JGAM Team

JGAM announced:  On 25 August JGAM’s Investment Committee held an ad hoc meeting, deciding to carry out the decision we took on 11 August:  “It’s our intention to use a rebound in equity prices to reallocate even more into defensive stocks. Furthermore, we intend to turn up and down on risk exposure by use of currency positions using tight stop losses to limit downside risk and locking in gains by use of trailing take profit stops, i.e. using the successful disciplined approach from our Managed FX portfolios.” (Quote from the 11 August meeting.)

Prior to this week, stock markets have fallen four weeks in a row. However, this week we have seen the expected rebound which causes us to take action and further reduce risk exposure by selling stocks and move all managed portfolios into an underweight equity position. Also, we take profit on approximately half of our gold position. The price of gold has risen to record high levels since we entered the position, and we are taking the opportunity to book some of the gain. However, we still keep a gold position of approximately 5% as a hedge in case stock markets plunge again. Furthermore, we put a take profit stop on our Swiss franc position to make sure we don’t lose the gain we have obtained.

We have done all this before Ben Bernanke spoke in Jackson Hole today, Friday. Markets are optimistic that the Fed’s chairman will announce policy actions that will cause a shift in investor sentiments and stop the sliding stock prices. However, at JGAM we think it will be difficult for Mr. Bernanke to fulfill markets’ high expectations. We still have difficulties seeing where the growth shall come from in the present deleveraging environment we are in and policymakers lack of room for maneuver. Add to this the smoldering and unsolved eurozone debt crisis. Therefore, we expect to be able to pick up stocks at more attractive levels on a longer-term horizon. However, short-term we are prepared to scale up and down our risk exposure by using currency investments. E.g., if Ben Bernanke succeeds in creating a positive sentiment in the stock market, we are ready to quickly take on risk exposure through new currency positions positively correlated to growth and stock prices. We will keep you updated.

We now know since JGAM issued that report that Bernake surprised everyone because he did not offer any plans for additional measures to bolster short-term growth.  He said that that the economy was recovering and the nation’s long-term prospects remained strong instead.

Regarding gold we remain in agreement with JGAM’s advice of last week… take profits if you have not.

kitco-gold-chart

How long will the gold bull hold?  This chart from Kitco.com shows the similarity of the run up from 1976 to 1980 and 2002 to now.

It makes good diversification sense to hold a percent of your portfolio in gold… yes… absolutely.   Gold as insurance… a permanent but small portion of your portfolio is different from gold as a speculation.  Gold can be a good speculation…  as the chart above shows.   When it is at an all time high… beware.  Very few people find value at the top of a bubble and the history of serious sharp declines in all speculation and all bubbles exists.

The Kitco.com website says: In an article titled, “What Goes (Straight) Up …”, KITCO.com analyst John Nadler said the bears are seeking to test the 1680 to 1650 level, and that a bounce from there would not be surprising. He also made an allusion to memory of the large decline in 1980 (which was about 45%).

In an interview with The Street, titled “Expect a 35% Correction in Gold,” he said that a 35% decline was possible, and that something in the 1480 area might be a bottoming level.

This begs the question then, where does one store value?

Necessity is always a good place to store value… food, clothing and shelter.  However, the root of all three of our basics is water.  Water investments offer great potential. This does not negate the need to suit such investments to your needs.

While the world’s population tripled in the 20th century, the use of renewable water resources has grown six-fold. Within the next fifty years, the world population will increase by another 40% to 50%.  This population growth – coupled with added water demand per person from industrialization and urbanization – will result in an increasing demand for water.

Yet the world may be entering an era of less water!

A August 22, 2011 article in Time Magazine  entitled “Parched Earth” by Bryan Walsh says:  Hurricanes announce themselves on radar screens before slamming into an unlucky coast. Tornadoes strike with little warning, but no one can doubt what’s going on the moment a black funnel cloud touches down. If we’re lucky, a tsunami offers a brief tip-off — the unnatural sight of the ocean swiftly retreating from the beach — before it cuts a swath of death and destruction.

But a drought is different. It begins with a few dry weeks strung end to end, cloudless skies and hot weather. Lawns brown as if toasted, and river and lake levels drop, like puddles drying after the rain. Farmers worry over wilting crops as soil turns to useless dust. But for most of us, life goes on as normal, the dry days in the background — until one moment we wake up and realize we’re living through a natural crisis.

This summer the python has gripped much of the southern U.S., from the burned fringes of Arizona — singed by massive wildfires — to usually swampy Georgia. Hardest hit is Texas, which is suffering through the worst one-year drought on record, receiving an average of just 6.53 in. (17 cm) of rain so far this year, well off the 34 in. (86 cm) it receives over a normal 12 months. At the end of July, a record-breaking 12% of the continental U.S. was in a state of “exceptional drought” — the most severe ranking given by the National Drought Mitigation Center. More than 2 million acres (809,000 hectares) of farmland in Texas have been abandoned, and streets are cracking as trees desperately draw the remaining moisture from the ground. Taps are dry in one North Texas town.

And there’s evidence — when it comes to rainfall, at least — that the good years we’ve enjoyed in the past may have been more of an aberration than we realize. The Southwest in particular has a history over the past two millennia of severe droughts that lasted for decades; deeper in the geologic past, dust bowls endured for centuries. Just as worrying, climate change is expected to further dry out much of the region, multiplying the impact of population growth and expanding demand for water. What the South is facing may be not just a drought but the first signs of a permanent dry, one to which we’ll need to adapt — if we can.

This article was accompanied by a 17 Photo Essay “Picturing the American Drought” by George Steinmet

dry lake

This, one of the 17, photo entitled “The Island,” shows a resort on Lake Travis, that is normally a peninsula surrounded almost completely by water. All the photos are linked below.

Let’s revisit Hyflux:

Hyflux chart from sg.finance.yahoo.com.   Hyflux trades in the USA as OTC code HYFXY.hyflux five year chart

We have been recommending Hyflux for over five years.  Each time the price drops I mention this again.

I invested in Hyflux shares myself yesterday.

There is one concern that may also be pressing (and could continue to press) on Hyflux shares.  The Middle East and North Africa (MENA) region, contributes 60 percent to the group revenue.

Hyflux announced last February that three water purification projects in Libya, worth hundreds of millions of dollars, could be delayed.

We first recommended Hyflux in 2004.  Then we wrote about Hyflux again in 2008…  both times before the shares began to rise.  You can see those who purchased Hyflux in 2004 and 2008 have been in a position to make huge profits.

Here is what I wrote in 2008:

#1: Is Hyflux a well managed company?

I have liked the management team for years. The group is headed by Olivia Lum who has proven to be an astute leader. Hyflux Limited SGX: 600 began in 1989 as Hydrochem (S) Private Limited, a trading company selling water treatment systems in Singapore, Malaysia and Indonesia and later, China. Lum has been progressive. She added a team of scientists and engineers that created technology for Singapore’s water recycling plants that filter and treat waste water.

These technologies are based on semipermeable membranes and reverse osmosis that is capable of extracting potable water from residual, sewage and salt waters.

Hyflux was the first water treatment system company to be listed on Singapore’s equivalent of NADAQ in 2001 and the first to be upgraded to Singapore’s main exchange in 2003, again making history.

The group has been expanding geographically first to China, then lucrative Middle Eastern markets and is now entering India, Southeast Asia and Africa.

#2: Is the company in a growth industry?

There are few sectors with as much potential as water. China, the Middle East and India offer special opportunity.

#3: Are the shares available at a good value?

The shares are certainly a better value than a few months ago. Here is the share price over the last year.

I am writing about Hyflux again now because the global stock market sag has pushed Hyflux shares down once again and created extra value.
However as you can see from the company’s financials, sales, profits and dividends are at all time highs!

hyflux data

This may be a good time to look at Hyflux for our portfolios now.

An investment in Hyflux by the way, also represents an investment in Singapore dollars so all the numbers above have been enhanced by this added forex growth.

singapore-dollar-chart

This chart from sg.finance.yahoo shows the benefits of a multi currency portfolio as the Singapore dollar has risen versus the US dollar since 2004

One More Vital point About Investments and Water.

The United Nations Water agency UNwater.org says:  A Drought in Your Portfolio?

The World Water Assessment Programme (WWAP) participated in the EIRIS conference on global water risk research. The conference explored the investment case for considering the risks and opportunities arising from water scarcity as part of a wider sustainable investment strategy, and heralded the launch of the EIRIS’ Global Water Risk report.

The report shows that out of the 2000 global companies analysed 54% are exposed to water risks but take little or no action to mitigate them, and approximately half show no evidence of any management response to water risks whatsoever.

So when thinking about any investment look at the water element… this is becoming a necessity that can help your future from becoming all wet!

Gary

Join Merri and me at our next International Investing & Business seminar when we look at eleven ways to profit from investing and business in water.

Picturing the American Drought: by George Steinmet

Read Time Magazine’s article Parched Earth