A Warm Autumn Day: Looking down from our front patio.
Change can come quickly. Two days ago I sat shirtless in my shorts on the front porch watching dusk shadows deepen and cool on the 70s degree day. Grasshoppers danced on the golden valley to crickets singing in shadows. Merri, Ma and I languished in this lazy, glorious beginning of fall.
However, this morning autumn suddenly snapped her icy warnings! Temperatures dropped to 26 and the animals all came alive in the rising sun. Five horses romped on the front yard, kicking bucking and whinnying their joy. A thinning sunlight exploded in the yawning forest and filtered the leaves into bursts of crimson and gold.
We trod the mile to our mail box fighting the icy tendrils in the creek and watched a first frost glisten on the roof top warning us of the joys of winter. Millionaires of beauty!
Jack Frost turns up just two days later.
What a change in just two days!
We have been helping our readers make millions from change for over twenty years. One reader confirmed this when he wrote last week:
“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,”
Surprisingly, we have rarely written about specific shares in this process of helping our readers.
Instead we have helped readers have a big picture, and get a Bird’s Eye View of market distortions so they can get in at the bottom of a market that is depressed, but due to global factors are bound to rise.
We began this process in the 70s, for example, and one of my first reports simply recommended investing in four simple mutual funds. One invested in German equities, one in Swiss, one Australian and one English equities. Investors who did this quadrupled their funds over the next several years.
May I hasten to add that I also wrote about investing in silver. That was a lousy idea at that time. This process of making millions through equity investing is not all wine and roses.
Back then finding good funds that were easy for people anywhere to buy was tough. The job was even harder to find a fund that really zeroed in on a specific trend that was spotted.
Advancements in international investing mean this is no longer true. Now we can invest in ETFS. ETFS are Exchange Traded Funds that invest in a basket of very specific individual shares to represent and idea.
The goal of the manager is not to pick good shares but to simply invest in a basket of equities that will mirror an idea or index. Say for example you would like to invest in Japanese equities. There are ETFs that invest in exactly the same mix of equities as the shares that are used to calculate the DJ Nikkei Index.
Since there are hundreds of indices around the world (maybe thousands), there are even more ETFs. One can be very specific.
Let’s see how this works to help us as investors looking for good international investments.
First, let’s assume we are fed up with US fiscal mismanagement. Maybe we believe that the US dollar is heading for a crash. We want to invest abroad somewhere that is solid and safe. This would be Europe for now.
Next, let’s say that we take a Bird’s Eye View of the Western World. We can see that health and the environment are really big long term issues that must be resolved! Can it be profitable to invest in good? Are we better in the here and now to invest in polluting industries like oil and mining? Perhaps Voca Cola, McDonalds and Merck are better deals than worrying about slimy rivers, fouled air and impure food?
Not so. Our son, Jake, who works for the British environmental protection agency sent this note today.
A recent report for Shell Springboard (a fund within Shell that provides finance to innovative, low carbon business ideas across the UK) by Vivid Economics claims that climate change will be a £30bn opportunity for British Business over the next ten years.
The biggest identified markets for SMEs in 2010 will be:
– Building regulations for commercial and industrial use – £950m
– Renewable electricity – £800m
– Renewable road transport fuels – £500m
– Domestic energy efficiency – £400m
– Building regulations for domestic use – £275m
The greatest opportunities for business lie in compliance. The report has some good background information, such as the innovation strengths and weaknesses of SMEs and quotes, e.g. “If the average UK business paid for the environmental damage of its greenhouse gas emissions it would amount to less than 0.8% of its value added”.
The report is available at: http://www.shellspringboard.org/downloads/news/Q65_Springboard_Doc_V4.pdf
We can see the profitability of goodness in other ways. A look at the ASPI Eurozone Index shows that investments in good have outperformed investments in bad.
ASPI Eurozone stands for Advanced Sustainable Performance Indices. This group of indexes tracks the financial performance of 120 leading Eurozone sustainability shares. The ASPI rates companies on a positive approach to sustainability and SRI. These indices began mid 2001. They also take profitability into account and use a “triple bottom line” approach. Shares in the indices must take social, environmental and financial performance into account.
Since 2001 the ASPI Eurozone has outperformed the Dow Jones EURO STOXX which covers a broad base of European shares.
You can learn more at http://www.vigeo.fr/site.php?rub=4&lang=en
When we are here in the North Carolina mountains and the weather starts to turn cold, it’s good to know that we have somewhere warm to go. When we have traditional investments like General Motors or US airlines or the US dollar turn cold, we are happy we have markets to go to that are hot!
This is one reason we like, invest in and recommend Ecuador.
Millionaires are made from good real estate investing as well as equities and we have been investing in Ecuador for over twelve years now. Right now we are looking at a $75,000 home built by Barro Viejo. Yesterday we saw the first picture at
Here is a shot of the living and terrace room of this 2,500 square foot house that Barro Viejo is building in our village of Cotacachi. The cost is about $75,000.
Learn more about spotting good value and international investment trends at our next International Investment & Business course in Cotacachi this November. Join Merri, me and Jyske Bank this November Learn upcoming economic conditions that could create distortions and trends. Details to join us at the International Business Made EZ in Ecuador
Stay on for our Mystical Andes tour. Meet the architects from Barro Viejo and see their homes. Details for the Mystical Andes tour
Until next message, may your trends always be warm.
P.S. Creativity, humanitarianism and prosperity come in many forms, but all of them require three things: understanding, communication and inspiration.
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Learning Spanish is valuable, important and can be fun! There is way to enjoy December 9 – 13 2006 in the Andean sun as you learn how to learn and how to become fluent in Spanish at a price so incredibly inexpensive that it is hard to believe. Super Thinking + Super Memory + Spanish