Guess Who! When and Where?
There I was with my Hong Kong sales team. Aged 21, I had talked my way into a job as the Asian sales manager for a brand new mutual fund sales company. I was the eighth employee in that firm so the opportunity was wide open and worked well…for a little over a year. The company grew to 2,000 employees..before it went broke.
Our job was to sell US mutual funds to investors in Hong Kong. That was exactly the wrong time. The US stock market was about to have its first crash since 1944. The Hong Kong Stock Market turned into the hottest market in the world for many years. My plan was totally reversed but luckily I caught on…stopped selling US funds in Asia and started talking to US investors about investing abroad.
The timing could not have been better. We were able to spot wave after wave of new global investing trends. This created more wealth for me and my readers than I could imagine.
Now economic conditions and events are eerily similar. The US fights a draining, “can’t win,” war. US debt sky rockets. There is enormous political unrest at home. Oil prices have ballooned. Inflation soars. The economy looks soft in the US but looks good elsewhere. All these things happened when I was working with my sales team in Hong Kong 35 years ago.
All these things are happening again now.
Merrill Lynch just issued a report titled “FX Implications from global decoupling”. The report says:
Can the world withstand a US slowdown? For nearly a decade, the US has been a key engine of global growth. We now expect a significant slowdown in US growth. Most importantly, Merrill Lynch expects the US demand slowdown to come sooner and prove more persistent than generally anticipated. The world economy can no longer rely on the US consumer as a buyer of last resort, in our view. Although several countries appear vulnerable to a US slowdown because of their high export dependency, we generally expect the global economy to weather the US storm better than expected. The key sources of decoupling are: Independent domestic demand outside the US which, coupled with the rise in intraregional trade, creates pools of regional demand. The ability to implement supportive, offsetting macro policies.
You can read the entire report which points out countries Merrill believes will do well and those more likely to suffer from a downturn in the US. See Cause and FX
The key to prospering (rather than being wiped out) from this change is to see and adapt to the shift. In this case it means diversify out of the US .
Invest in Yourself
You can of course invest in international bonds, international shares and international real estate in more than one country. This is good.
However the maximum safety comes from being able to shift your income earning power into more than one country as well.
That was why I was marketing in Hong Kong and the US 37 years ago. We offered Hong Kong investors the opportunity to invest in US real estate. We sold the idea of global investments to investors in the US.
Again conditions are eerily similar. If the US dollar falls and the real estate market continues to soften, American property will be at bargain basement prices for foreign investors. Overseas investments for US investors grows.
Here we are. 37 years have passed but when I reviewed my own portfolio it’s positioned exactly like it would have been 37 years ago! This is spooky. Look again at my most recent portfolio review. You’ll see that 46% of my portfolio is in US real estate. You’ll also see that 51% of my portfolio is invested in currencies outside the US . This means that almost all my portfolio is either in US real estate or shares and bonds abroad!
You can review my portfolio at International Investments Portfolio Review
In the early 70s I was young, green and inexperienced. Not now. I do not plan to be caught by the sudden drop in the dollar, Wall Street and hit by inflation. This portfolio is designed to profit from exactly the scenario that Merrill Lynch now suggests is ahead.
The United States is a great place to live and it’s even a better location when you do not have to suffer economic hardships created by poor fiscal management by American leaders.
So I am invested almost entirely in real estate or non US stocks and bonds…but my real security is in my business.
Why not? Business for us is just plain fun. When you earn doing what you love, it is fun and fulfilling to gain security freedom and income from your own business. We looked at this in depth at our course last weekend and you can see how to have your own business from a free report covered at the course. Go to International Investments and Business
Here are what a few delegates shared about the course below. You can see pictures of the course and how we have so much fun as we learn together at International Investments and International Business Courses
“Thank you for a wonderful experience. The whole package was great: the Blackberry that sheltered us and warmed our hearts, the informative, stimulating, life-affirming conference that opened our minds to global possibilities; the luscious, natural, wholesome, lovingly-made food that nourished us with God-given energy; the crisp, prana-filled, tree-fed mountain air that reminded us that it is a pleasure to breathe in and connect to our earth, to ourselves; and last but not least, your hospitality. Thank you.”
“Dear Gary and Merri: Please receive my most heartfelt thank you for the wonderful time I spent in NC. The countryside is picture perfect and your farm is an idyllic retreat, with pine tree forests, streams, a lagoon, and the horses and geese to wrap it up. The group was wonderful and very warm to our projects. It couldn’t have gone better. Your friend”
”Thank you very much for your kindness and generosity to allow me to stay on your beautiful farm. I really enjoyed to be there. Your conference was excellent.”
“My drive from Jefferson Landing took me 2hrs 12 min. It was a beautiful one. We (my wife and I) safely arrived to Hungary . When we got here we learned about the Sunday night riots and turmoil. Do not worry about us the country is perfectly safe and calm. This was only a pre election political tactics. However this incident confirms my view about any government. We have to be careful and never trust any government. These recent Hungarian incident proved Garys point about diversification and about multi currency and about multi market sandwiches. Thank you very much again”.
“Good Morning Merri & Gary: I sincerely enjoyed the three days spent on your unique farm and was thoroughly motivated by the knowledge imparted during the three days.”
“ Gary, We were pleased to be able to be at the IBEZ seminar this past weekend and we enjoyed it immensely. Thanks once again.”
Economic clouds are on the US horizon. The stock market looks wobbly. Real estate prices fall. The dollar could collapse at any time. But this potential drizzle does not have to dampen your prosperity! The sun always shines somewhere, and you can enjoy its economic warmth by investing internationally and slowly building sources of income abroad.
Until next message, good investing and business!
Start Your Own Global Business
In reviewing our last Writer’s Camp we actually have three nice successes I can write about. You can see the web sites they generated from the camp. See www.naplesispriceless.com
More on these in upcoming messages. See Writing and Publishing Courses for Self Publishing for information on our next Writing and Publishing Courses for Self Publishing.
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.
Jan 12-14, 2007 – Join Merri, Todd and me for a Wedding Photography Course
Todd Smith Photo
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 de las Flores Hometel