“Global travelers are feeling a double pinch this year, first from inflation and second from yet another fall by the US dollar. Recent messages have looked at how on our trip to England , one nice tea shop in Harrogate charged me $8.08 (4 pounds) for a cup of coffee. Later in Copenhagen , we enjoyed a mediocre lunch at $88 each (479 kroner). A nice dinner for three was $900 (49,000 korner).
“Yet I did not care so much because I was earning profits in British pounds and Danish kroner.
“Admittedly, England and Denmark are two expensive countries. Yet prices are rising almost everywhere, especially in terms of US dollars. We have seen in other recent messages that even the currencies of Colombian and Brazil have risen over 25% versus the greenback in the past few years.
“This continued fall of the dollar is not likely to stop soon either. It has been losing purchasing power for 40 years. In 1968 a dollar would buy 400 yen. Now it converts to about 115. The buck bought four Swiss francs back then. Now the one spot buys less than 1.2 francs. This same dollar loss is true for the major European currencies that have now switched to the euro.
“Fortunately there is a safe way to protect against this dilemma of increased traveling costs…called multi currency investing. This strategy increases investment safety and can provide extra profit to counter balance
the dollar’s loss. The idea is simple, invest in a basket of safe investments in many currencies and countries…yet despite this currency turmoil of four decades, most investors have not learned to do this?
“That is why to prove this and help readers learn better ways to create multi currency portfolios, we began working with Jyske Bank , Denmark ’ second largest and one of Europe ‘ leading currency banks, to create multi currency portfolios that we track for educational purposes.
“Our first dollar hedge portfolio began in November 2005 and a year later had risen 11.46% during a period when dollar bonds and certificates of deposit were yielding less than 5%.
“We updated that portfolio November of 2006 and in the last ten months (to Sept. 1, 2007) it had risen 22.33%.
“Despite this excellent performance the main benefit of multi currency portfolios is safety through diversification.
“This current portfolio is diversified into seventeen investments denominated in ten currencies. This portfolio is spread into good quality bonds and equity mutual funds that represent an investment in hundreds of bonds and shares spread around the world. Here is the portfolio:
|% of portafolios||Currency||Investment|
|10.00%||Australian $||5.00%||BK Nederlandse Gemeenten 16.07.10 Bond|
|4.00%||Brazilian real||12.50%||Brazil rep. of 05.01.16 Bond|
|10.00%||Brit. Pound||6.375%||Rabobank Nederland 20.03.09 Bond|
|5.00%||Hungarian florin||6.50%||Hungary Gov. 12.08.08 Bond|
|4.00%||Icelandic kroner||9.50%||Iceland 13.06.2008 Bond|
|5.00%||Mexican peso||9.00%||Mexican Bonos 22.12.2011 Bond|
|6.00%||New Zealand $||6.00%||KFW 15.07.2009 Bond|
|4.00%||Turkish try||10.25%||KFW 09.02.2008 Bond|
|5.00%||US $||3,875%||Deutsche Telekom 22.07.08 Bond|
|5.00%||US $||5.45%||Hutchison 24.11.10 Bond|
|7.00%||US $||7.20%||Porsche Intl. 01.02.2049|
|5.00%||Euro||Jyske Invest Favourite Equities Mutual Fund|
|5.00%||Euro||Jyske Invest German Equities Mutual Fund|
|5.00%||Euro||Jyske Invest High Yield Corporate Bonds Mutual Fund|
|5.00%||JPY||Jyske Invest Japanese Equities Mutual Fund|
|5.00%||US $||Jyske Invest International Equities Mutual Fund|
|10.00%||US $||Jyske Invest Emerging Market Bonds Mutual Fund|
“This is what multi currency investing can do, spread your wealth globally for safety and double, triple or even increase dollar returns four times what you might get at the bank in greenbacks. There are times (when the US dollar temporarily rises) that such portfolios look weaker in dollar terms, but 40 years of history and current events suggest that international travelers will enjoy their travels more when they use multi currency portfolios.”
This article will be the beginning of the end for our low $149 subscription rate for our Multi Currency Educational Service. You still have time to meet with Merri, Thomas Fischer and me at our farm. We will not have time to take you fishing, but we’ll have a nice meal up here, you’ll be surrounded by many intelligent people and we have a lot about how to invest and do business globally to share.
Here is the latest word from the large publisher that we have developed a cooperative plan to offer our Multi Currency Educational Service. “ Gary , I have sent your promo out to a designer this week…we’re eager to market ASAP. I’m waiting to hear back from our ops crew about how best to get you the orders.”
This means that the time to subscribe at the low, existing $149 price is nearly through. To take advantage and save during these last days simply go to https://www.garyascott.com/catalog/bldh
P.S. We still have four spaces open for International Business & Investing Made EZ course in North Carolina . Join Merri, me and Thomas Fischer as we update our multi currency portfolios for 2008! Join us this weekend September 14-15-16, 2007 in West Jefferson North Carolina . We hope to see you there. Details are at https://www.garyascott.com/nccourse/
Or join us and Jyske Bank at our hotel El Meson de las Flores for International Business & Investing Made EZ in Ecuador , November 9-10 and 11. https://www.garyascott.com/catalog/IBEZec/