Change in Portfolio

by | Aug 25, 2003 | Archives

Leather clip-clops echo on cobblestone squares as bear-skinned soldiers stride by. Waterfront smells ride on a brisk ocean breeze. A bronzed temptress sits on rocks overlooking a choppy, windblown sea. What secrets are held in her mysterious eyes?

Copenhagen, Denmark. Spotting trends before the pack does is one of the easiest ways to make substantial profits. This thought was on my mind as Merri and I flew to Denmark where I am speaking at Jyske Bank's international investment course. We love walking along the harbor and visiting each year the Little Mermaid.

One way to increase profits is through currency investments such as the Multi-Currency Sandwich. While I was waiting to speak at the Jyske, I learned the latest update of the bank's Invest Loan.

As there are signs of growth in Japan, Jyske's current recommendation now reduces the amount of borrowed Japanese yen from 30% to 10% with a 50% loan in Swiss francs and 40% borrowed in U.S. dollars. This loan is invested in five year bonds in Australian, Icelandic and New Zealand dollars and two year Hungarian Florin bonds.

Here is how four times leverage could bring 24.5% for each $10,000 invested and $40,000 borrowed. The interest rate on yen is 1.63%, Swiss francs 1.88% and U.S. dollar 2.63%.

Here is the potential in this portfolio.

Amount       Investment                                     Yield          Return

$12,500 Swedish Export 2007 AA+ NZ$ Bonds 6.00% $750

$12,500 Hungarian florins Gvt. BBB 2004 Bonds 8.50% $1,062

$12,500 Iceland Gvt. BBB Bonds 2007 in ICD 6.00% $750

$12,500 Transco 2008 A AUD$ Bonds 6.00% $750

$4,000 Japanese yen loan -1.63% -$ 65

$20,000 Swiss franc loan -1.88% -$376

$16,000 U.S. dollar loan -2.63% -$420

Total Return $2,451

This is a total return of 24.51% on each $10,000 invested and is a conservative investment in short term bonds that provides a nice diversification of currencies.

You can meet me and Thomas Fischer of Jyske Bank to learn about investing in China and the yuan and the Borrow Low-Deposit High strategies at our November 7-8-9 in Jefferson Landing Golf and Country Club in West Jefferson North Carolina. For details go to

Until next message may all your investments be good.