Borrow Low Deposit High – How to Use the Multi Currency Investment Sandwich

by | Jan 1, 2005 | Archives

Annual Multi Currency Investment Service. Order Here $99.

Track and Learn how to Construct Multi Currency Invesetment Sandwiches for Greater Financial Safety and Profit.

The Multi Currency Investment Sandwich has been a phenomenal way to invest for over three decades. Since the end of the US dollar’s link to gold the fluctuations between currencies have created some of the world’s greatest (such as George Soro”s) fortunes.

One great, very exciting Sandwich has lasted nearly two decades. Back at the end of 1988, the yen hit dizzy heights in the 120 Yen per U.S Dollar range. Yen interest rates dropped into the low 4% range. This created a classic sandwich opportunity. The yen was a strong currency at an all time high with a low interest rate. This is the formula that Multi Currency investment sandwich investors always looks for.

Now, twenty years later the yen is still in the 120 per dollar range and the interest rate has fallen as low as 1.62%!

My name is Gary Scott and I have been writing and publishing information about international investing for nearly forty years (since May 1968 to be exact). Fortunately I stumbled across and wrote about the Borrow Low Deposit High Strategy at an early stage so the original readers of my report “Borrow Low Deposit High–How to Use the Multi Currency Investment Sandwich” have been able to borrow yen at low rates and redeposit the loans in other currencies at much higher rates (without forex loss) for 17 years!

This is not a fast trading technique and in fact most positions are aimed with a five year horizon…pretty sleepy compared to people who trade currencies (an entirely different approach). Yet for most of us, slow and sleepy mean SAFE! However the Borrow Low Deposit High tactic can be really profitable.

How sleepy and safe?

Imagine this. Over the past 17 years, the cost of a Japanese yen loan has averaged about 2%. The US dollar interest rate has averaged 4% over this same period. If one invested $100,000 in safe US dollar bonds or CDS held in huge, safe banks for this period and used this loan as collateral to borrow $400,000 worth of yen to reinvest in safe US dollar CDs or bonds, they have earned an average $12,000 a year and turned a safe 4% investment into a safe 12% investment. They added an extra $144,000 of income (on a $100,000 investment) over the 17 years!

Investing for 17 years in US dollar bonds or CDs is about as sleepy and safe as one can get.

Yet many smart Multi Currency Investment Sandwich investors have done much, much better.

How much better?

Take for example last year. Our email Borrow Low Deposit High Portfolio Learning Service developed and tracked five model portfolios beginning October 21, 2005. We reviewed them bi-weekly through the year.

During mid 2006 we had to cope with the second worst emerging market crash of the decade from March through July 2006. Despite this we have came through the year satisfied with the results of these real time, case studies.

The performances of the five portfolios from October 21, 2005 to October 21, 2006 were:

Emerging Asia
+ 110.48%
Emerging Currencies
+ 42.86%
US dollar Hedge
+ 10.60%
US dollar Long
+ 8.81%
US dollar Short
+ 7.32%

Had we invested all $50,000 in the Asian portfolio (and leveraged two times with a 1.62% yen loan) the investment would have returned nearly $165,000 profit in the year.

Is this enough better?

Let me hasten to add that this type of performance is easy to write about when looking back. I do not want you to ignore the fact that as sleepy and safe as Borrow Low Deposit High can be that there can also be risk. Had we invested in some of the portfolios above in March or April 2006, they would have lost money by October 2006.

This is why our portfolios are not investment recommendations but are used to learn so we better know how to profit and how we can also lose. This is an educational service that helps us learn what to do and what to avoid.

We learned this last year that the Emerging Asia and Emerging Currencies portfolios strongly over performed their projections. The three dollar portfolios gained less than projected, but still beat any US dollar, Euro or Western European currency bond yield or CD interest.

The price for this extra performance was volatility.

This last year taught us other valuable lessons.

For example one interesting lesson is about the most profitable investment in all five portfolios. With the Asian portfolio doing so well, one would assume that the greatest profits came from the Chinese or Indian funds held.

Not true. One of the most profitable (in percentage terms) investments was in the Jyske Invest Eastern European Equity Fund. From October 21, 2005 to October 21, 2006 that fund rose from $51,000 to $76,138, a return of nearly 50%.

Had you leveraged this loan two times with a 2.75% Swiss franc loan, the return on a $50,000 investment would have been over $225,000 in one year.

This Jyske Fund has also performed really well in the last five years, up from 110 euro to 500 euro since 2001. That’s an increase of 3.54 times. If you had invested $100,000 and borrowed $200,000 more in Czech koruna at 3.75% and invested in this fund for the past five years the initial $100,000 would now be worth over a million dollars! Your loan costs would be $37,500. Your profit on $100,000 after interest would be $1,024,500 on $100,000 of cash invested.

How much better can we ask than that?

Based on this we are adding several new portfolios to track and learn from over the next year. One of these portfolios will be an Eastern European Emerging Portfolio leveraged with a Czech Koruna loan.

The portfolio will borrow Czech koruna and invest the loan in the Jyske Invest Eastern European Equity Fund which is invested in Eastern European markets including Russia and Hungary as well as the Czech Republic. The Czech Koruna appears to be a good currency to borrow at this time. Its interest cost has dropped to a low 3.75% and has recently flirted with all time strength against the euro. Overly strong currency loans tend to fall and create extra forex profits (as they become cheaper to repay).

Another portfolio we’ll add is a Dollar Shorter Portfolio. This will differ from last year’s dollar short portfolio as it will be more aggressively anti the greenback! This will be the real thing with a 100% dollar loan and no USD investments. Investors who fear a US dollar collapse will want to follow this trend.

We’ll also add a Swiss Samba Portfolio. This will be a portfolio of Latin investments leveraged with a Swiss franc loan.

This Swiss Samba portfolio makes great sense now. Over the last year the region of Latin America outperformed the other two emerging regions. Latin America Morgan Stanley Capital Index is up 17.4 %. Asia is up 15.2 % and Europe/Middle East/Africa (EMEA) returned 4 %.

Our $50,000 model investment in the Jyske Invest Latin Equity Fund rose to $70,538, a return of over 40%. Should this region continue to boom the performance in 2006 could be even greater.

There are more important lessons we shared this last year. For example our Borrow Low Educational Service followed five different philosophies, one for investing in Asian, another for emerging markets and then three tactics based around the movement of the US dollar.

All the portfolios were profitable if held for the year. The lessons were that when a properly constructed portfolio is leveraged and diversified, it can be safe and profitable regardless of the underlying idea, if an investor sticks to his beliefs and does not panic during short term drops.

We also learned that past performance is no guarantee of future profits. The profitability of the portfolios changed dramatically based on varying entry and exit points! This reminded us that such high performance may not materialize for all and that we must plan our profit and loss potential.

This is why we have created this educational service to help you learn the risk as well as the potential rewards.

This is also why we maintain close contact with Jyske Bank, Denmark’s second largest bank. Denmark is rated by Standard & poor’s as the safest country in the world to bank in. Jyske Bank is the only bank we know that specializes in the Borrow Low Deposit High strategy. Jyske bank is also one of the leading currency traders in the world. Unlike most banks (that trade only eight hours a day) Jyske maintains a 24 hour trading service. They have been our bank for over twenty years and help us stay informed about global equity markets, plus global currency parity and interest rate trends so we can learn from portfolios that are real time. What you learn from is actually happening as our service unfolds.

More importantly Jyske Bank provides a stable and safe institution for those who wish to employee a Borrow Low Deposit High strategy based on what they learn.

Our emailed Borrow Low Deposit High Educational Service can help you learn how to expand your profits with up to 400% loans just as our reports have helped thousands of readers do over the past twenty years.

You can learn why this profit is available in my new updated “Borrow Low Deposit High–How to Use the Multi Currency Investment Sandwich” emailed report. This email report explains everything you need to know about how to create and invest in the Multi Currency Investment Sandwich and you can purchase this report below.

Tens of thousands of readers have paid $49 for this report since it was first published in the 1980s. You however can have the most up to date edition free.

Buy our annual emailed Multi Currency Investment Sandwich service and get the email report “Borrow Low Deposit High” FREE.

When you enroll, we’ll email the “Borrow Low Deposit High” report to you immediately along with an up to date analysis of the portfolios we are currently tracking. Then we’ll email Multi Currency Investment Sandwich updates on a regular bi weekly basis so we can learn how, why when and where opportunity in currency and interest rate parities may be best.

The service helps to see why and where to invest and learn why and how currencies and interest rates rise and or fall.

Finally, as always you are protected by our 30 day completely satisfied or your money back guarantee

Borrow Low Deposit High – How to Use the Multi Currency Investment Sandwich Annual Multicurrency Service.

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One more thing. Here is what a few others from around the world have said about our Borrow Low Deposit High Services and reports on international investing.

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


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

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

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

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

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

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

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

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

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

Warm regards,”

C.M. CALIFORNIA Businesman

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

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

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

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

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

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

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

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

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

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

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