Multi Currency Investing Fights Inflation

by | Jul 14, 2008 | Multi Currency Investing

Multi Currency Investing Fights Inflation as Inflation concerns grow almost every day. For example failing US banks create added federal liability. Since US debt is already so high, tis added liability can cause the US dollar to fall.

This increases inflation.

Multi currency investing helps investors invest in multi currency stocks, multi currency shares and multi currency CDs.

An article in yesterday’s USA Today entitled Banks at risk of failing almost double since 2006″
by Kathy Chu” shows the need for multi currency investing.

This article says: “Rising losses from bad mortgages and low capital levels are threatening the viability of a small, but growing, number of U.S. banks. The Federal Deposit Insurance Corp. says 90 institutions, about 1% of those it insures, are on its list of “problem banks” at greater risk of failing. That’s up from 50 at the end of 2006.

“On Friday, IndyMac, a mortgage lender with $32 billion in assets, became the fourth-largest financial institution to be taken over by regulators, based on inflation-adjusted assets. During the housing boom, IndyMac was a leader in a type of loan that typically didn’t require proof of income. IndyMac has laid off thousands of employees and sharply cut its mortgage lending in recent days.”

This is why this site is dedicated to learning more about multi currency investing and how to
create long term multi currency investment profits by getting  good value in the multi currency shares ad bonds you buy.

In our multi currency course we uses “Seven Rules for Good Value Multi Currency Investing.”  They are are:

#1: Good value stocks outperform expensive stocks.

#2: Stocks in companies with rising earnings outperform stocks in companies with falling earnings.

#3: He prefers companies with share prices already in established up trends.

#4: Stocks with high earnings and rising earnings outperform stocks with low and falling earnings.

#5: He buys cheap, high quality stocks with rising earnings and increasing attention from the market.

#6: Periods of high performance are followed by periods of low performance.

#7:  Value is reflected long term.  Equity markets are efficient in the long run
but are not effective short term due to human behavior.

We filter the investments we review in these lessons in ways

#1: Are the shares traded in a good value market?
#2: Does the share trade  at fair Price to Earnings and Price to Cash Flow ratios?
#3: Does the share pay a good value dividend?
#4: Do the share have a good value relative to their previous price?
#5: Does the company have rising earnings?
#6: Has the share price been rising?
#7: Is the company’s management good and is their product or service line in
a wave of the future?

One portion of this filter is to keep track of global market values so we follow the analysis of our friend, Michael Keppler. Michael continually researches international major stock markets and compares their value based on current book to price, cash flow to price, earnings to price, average dividend yield, return on equity and cash flow return. He compares each major stock market’s history.

From this he develops his Good Value Major Stock Market Strategy. His analysis is
rational, mathematical and does not worry about short term ups and downs.

He, in my opinion, is one of the best market statisticians in the world. Numerous very large fund managers use his analysis to manage funds such as State Street Global Advisors.

The latest multi currency lesson contains a summary of Keppler’s current comments on recent developments & outlook in international major markets that covers the month of June to July to July 2008.

You can read that update when you enroll in our multi currency portfolio course.

See details at Multi Currency Portfolio Course