Multi Currency Income

by | Sep 16, 2008 | Archives

Multi currency income grows in importance during these difficult times.

A reader just asked: “Hi, Gary and Merri. I want to take your Multi Currency course. Is the October (NC) multi currency course different from your International Multi Currency Business Course in Ecuador, November 2008?

“Could you explain? Is the October multi currency course where a group of you get together every year to discuss multi currency market conditions and projections? Please advise. Thank you.”

My reply clarifies that both our October and November courses cover international investing and business.

The main focus in the October NC course is global investing.

The November Ecuador course has more emphasis on developing an international business from Ecuador.

Here is my rely to the question above:

“The October course in NC is usually smaller, more intimate. This is where Thomas Fischer and I review our annual portfolio update and focus more on multi currency global investing. Thomas joins me from Jyske Bank and speaks on global economic conditions and where Jyske is investing now.

A representative from Jyske Bank will speak in November but not Thomas. In Ecuador, several Ecuadorian business people and attorney join me to speak about business opportunity.

You can enroll in the October course here.

The Ecuador course has more focus on how to do a business from Ecuador. Gary

Each course is important because income and liquidity could be king for several years. Our messages first started making this point in August 2007. We provided many liquidity warnings before markets crashed. See a recap of them in last Saturday’s message if you missed it.

October’s course will focus on the importance of added weighting of income into the value monitoring of your investments.

Thanks to one of my readers, please see how Richard Russell supports the importance of this in the September 10, 2008 issue of Dow Theory letter. He wrote: “September 10, 2008 — For years I’ve been warning that INCOME is going to be the most sought-after item in the future. At the same time, I’ve emphasized the necessity of buying only stocks that pay dividends so you’re in the compounding game. A stock that pays no dividend is “dead wood” as far as I’m concerned; it does you no good unless it rises. The idea in owning stocks is to get PAID for the risk of owning a piece of a corporation. If the corporation pays you zip for taking the risk of owning it, what good is it? You cannot compound unless dividends are coming in. In a bear market, stocks that pay no dividends are at the complete mercy of the downtrend. As a dividend-paying stock declines, the yield on that stock increases, and if the dividend holds, the stock becomes more valuable. This is a critical point to understand if you are going to invest. Strong, dividend-paying stocks are better values (as is the case with top-quality bonds) as the stock (or the bond) declines. The corollary is that there is no more desirable stock than a stock that boasts a long record of increasing its dividend year after year. Studies show that dividends contributed as much as 50% of the total return on the S&P since WW II. The almost magical power of compounding can only be seen by holding stocks and reinvesting the dividends over the years. I’ve said before that debt works as a synthetic short against the dollar. Now, I believe we’re seeing the shorts being covered with the debt generating an enormous need for cash to carry the debt. To deleverage, you need CASH in order to get out of the merciless vice of debt. The individual or company that is totally deleveraged is the individual or company that is totally free of debt — no loans , no mortgage. ”

This October 3-5 course is very timely because markets have been hit so hard for the last year.

Cash is king. A new type of income producing value thinking is required. We will examine why, exactly what I am doing and what Jyske recommends.  Each course also looks at how your own business can create multi currency income during these times of global currency instability.

We’ll see more on this tomorrow. Until then, good multi currency income to you!


Join Thomas Fischer of Jyske Bank, Merri and me Friday to Sunday, October 3-5 to learn more about International investing and business. We selected this weekend as the most likely to be beautiful with the autumnal leaf change. The colors are glorious.


Here delegates at a previous course chat during a coffee break.


You can enroll in the October course here.