Here we look at international investments in Japanese yen. We began tracking five model MultiCurrency Sandwich Portfolios when we started our new Borrow Low-Deposit High service last October 2005. One of these portfolios, The Emerging Asian Model, is up +84.18% in the last 10 months and a few days.
Go to part two of our Natural Health Tip – Natural Invisible Beauty
Go to Ecuador Real Estate – Beautiful Teeth – Millionaires Pocketbook
International Investments in Yen
To learn how to invest in international investments better, we keep asking ourselves, why is this portfolio doing so well? What might happen next?
The portfolio started with a $100,000 investment that secured an additional $200,000 Japanese yen loan at 1.63% for a total $300,000 investment. The $300,000 was invested $75,000 each in the Jyske Invest Indian Equity Fund, China Equity Fund, Japan Equity Fund and Emerging Markets Bond Fund.
To date the Indian and China Funds have been the star performers. The $75,000 in the India Fund is now worth $105,440.10, the China Fund has risen even more at $108,320.34. The Japanese Equity Fund has lagged and has only grown from $75,000 to $80,947.46. This is not bad, about 8% in 10 and a half months, but way behind the other two equity funds.
We noted one reason for the Japan fund’s laggard status has been a weak Japanese yen. The yen was in the 114 yen per dollar range when the portfolio was started last October and dropped down into the 117 range before coming back into the 115 range.
You can learn more about all the portfolios at Borrow Low Deposit High – How to Use the Multicurrency Sandwich
Here let’s look just at why the yen could rise now, breach a 115.30 support level, and add even more strength to the portfolio.
Thomas Fischer’s September 4, 2006 currency update says there are several reasons why the US dollar may weaken as the summer ends. First the currency market may start to focus on America ’s economic imbalances, (rather than interest rate increases) that had been largely ignored over the summer.
There are meetings of the G7 the IMF, and the World Bank from 16 to 20 September that could cause the focal shift from interest rates to the imbalance issue. In addition Senators Graham and Schumer may reintroduce the bill involving a punitive duty on Chinese exports into the US in late September. China is in danger of being denounced as an foreign exchange manipulator again. This could cause investors to focus on a Chinese currency rise and US dollar fall. If there is a revaluation of the Chinese currency, the weakening of the yen will probably not be as great as that of the US dollar. Increased expectations of a stronger CNY (Chinese Yuan) have prompted a general yen appreciation.
The yen has also been weak because the yen has been a favorite funding currency. In other words, lots of investors are borrowing yen (as in our model portfolio) to invest in other currencies. Borrowing is paramount to short selling and increases a currency supply. Increased supply pushes currency strength down.
The yen is also currently at a record low against the euro.
The conclusion of the foregoing must therefore be that there is plenty of potential volatility this month that could push the US dollar down and Japanese yen up.
Jyske Bank maintains a recommendation of selling dollars and buying yen.
Yesterday the bank stated in a currency analysis that dealers began unwinding a raft of short positions on Monday after a rise in Japanese capital spending underlined a lingering possibility that the BOJ might raise interest rates this year. The yen rose to 115.76 making an important support level of 115.30 more likely to be breached.
A rising yen is not likely to hurt the Asian multicurrency portfolio because 25% is invested in yen and 25% in Indian Rupees and 25% in Chinese yuan. Since these two Asian currencies are likely to raise the cost of the loan through forex changes may not be much or anything at all.
However this creates some great extra profit opportunity that I will discuss at our upcoming courses.
Join Merri and me this November 9-12, 2006 in Ecuador . Meet economic experts from Jyske Bank. Meet Steve, our man in Ecuador, and learn about products to export. Meet our Ecuadorian attorney, Dr. Andres Cordova, and learn how to own real estate in Galapagos and the cloud forests. Meet our tour operator, Santiago Guamani, and learn how to create your own tour business. Review where to invest and do business now and learn which markets and currencies may be strong in the year ahead. International Business and Investing Made EZ – Ecuador
Monday’s message began a series on “The Glow of Total Beauty” and article written by Melina L. Takvorian (PhD)*(International Investments in Eastern Europe Makes Sense for part one and Invest in Time for part two).
The first two sections in the series showed that there are five types of beauty that must each work within themselves and in coordination with the other four. The five sheaths of beauty are physical external – Spiritual – Emotional – Mental – and Sensual. Here is what Dr. Takvorian writes about emotional beauty.
“Emotional beauty” is an altogether different story. Emotional beauty results from emotional peace. According to Ayurved, emotional beauty depends on a balanced sadhak pitta dosha. The sadhak pitta dosha is a sub-category within the human physiology in charge of processing the metabolic activities governing the emotional heart as well as emotional thoughts. Vaidya Mishra uses the following analogy to clarify this abstract category. He says that sadhak pitta is like the fuel that feeds a flame, the flame is the sadhak agni. Sadhak pitta is in charge of the bio-chemical system of the physiology that responds to emotional thoughts and experiences. Sadhak pitta’s properties of governance ensures that one’s daily emotional life experiences are processed, then collected and stored in “meaning-bytes” in the heart. A proper diet full of soma enhancing foods (such as rose water, milk, etc), a balanced daily routine that keeps the pitta dosha in check all help maintain the sadhak pitta in check. If an individual tends to be emotionally fragile in general, it is necessary to maintain a satwic diet in order to keep the heart lotus open. In addition, it is crucial never to skip or delay meals, as this tends to aggravate the pitta dosha immediately affecting the sadhak pitta. Starting the day with a stewed apple or pear is recommended. The intake of proper protein is also recommended. While the above are a necessary aspect of ensuring the minimum of balance, Vaidya Mishra explains that the proper alignment of sadhak pitta and sadhak agni with the satwa is a must.
The soul’s light, the satwa of the gem, is said to register and carry the memory traces of present and past life experiences within it. The satwa of the gem stores memories. The “flame” residing in the heart, also known as the sadhak agni is the function that processes thoughts and emotions. According to Vaidya Mishra, if this flame is too high, then no matter what the registered situation or experience is, it will burn it up, and the individual will respond to it in an overly emotional or angry way. If the flame, or the sadhak agni is too low, then the individual will be unable to process the incoming thoughts and experiences properly, and will tend to feel emotionally overwhelmed, exhibiting signs of sadness, depression, displaying a lack of enthusiasm. Ayurveda suggests the use of specific herbs such as Arjuna (Terminalia Arjuna) or Ashoka (Saraca Indica) to help restore and maintain the sadhak pitta in balance. Being a formulator, Vaidya Mishra explains that he incorporates these herbs into his creams for optimal support using a secret tradition of herb processing passed down through his family lineage. Arjuna and ashoka are “pranically encapsulated” in beauty care products, with the particular aromas of jasmine and rose that further balance the emotions. Tomorrow’s message looks at mental beauty.
You can learn how to gain inner and outer beauty through Ayurved from Dr. Mishra at his next El Meson course in Ecuador January 8-10, 2007. See Ayurvedic Cleanse
Our friend, Jim Humphrey, sent this great shot of a couple in Cotacachi…real beauty. Plus Steve, our man in Ecuador explains how to gain even greater dental savings. To have beautiful teeth without a busted budget is important as well! See how below.
“We have made an impressive advance in our dental service. The pain free laser dentist has offered a free cleaning or 30/40% off whitening cost if either treatment is also taken. He has also said that for some, but not all treatments, he can offer a discount of 10/15% off already low prices.
“I will accompany each patient for their first visit (if they need more than one visit) to help them organize a treatment plan and provide full backup by phone if any problems arise.
“In the total Dental package we provide:
“Reserve a room at El Meson.
Accompany the patient for first trip to the dentist and help them arrange a dental treatment plan, transport.
Provide full back up with phone translations if necessary and arrange transport, consultations with naturopath doctor and any other service if necessary.
Obtain a 10% discount off selected procedures
Obtain a 40% discount off laser whitening treatment when with other treatments
Obtain a FREE cleaning when with other treatments
“These discounts available from now to December 31st
“We hope that Dr Munoz will extend the discounts into the winter but cannot guarantee this. Regards, Steve”
Dental prices in Ecuador run a fourth to an eighth of what they are in the US (and even less in Europe). The discounts above are in addition to the existing savings. Learn more about the wonderful services that are available at Pain in the Pocketbook
Until next message, may you yen for and have beauty everywhere.
P.S. Enjoy the following services and courses in Ecuador in the autumn and winter of 2006-2007.
October 12-16, 2006 – Learn how to learn, retain and process information better + Spanish. Super Thinking + Super Memory + Spanish
November 9-12, 2006 – International Business and Investing Made EZ – Ecuador
November 13-15, 2006 – High Andes Tour. Discover the Mystical Andes
January 5-7, 2007 – Inspired Investing beyond Logic. Vedic Astrology in Ecuador
January 8-10, 2007 – Ayurvedic Cleanse.
February 2-8, 2007 – Learn how to Earn anywhere through Import – Export. Gary & Merri Scott’s Import/Export Expedition in Ecuador
Any time that space is available. Rejuvenate your health with a week’s R & R at El Meson.
See R & R at El Meson
Any time that space is available. Stay a month in El Meson and enjoy the full winter sun. El Meson da las Flores Hometel