This correction can bring unprecedented value opportunity. But how do we know who to trust?
If our multi currency investments are in what we know and with those we trust…our investing is always one step ahead.
For example, below you will see a breakdown of my total multi currency position and why I have made money this last year when so many have lost.
One important point to note is that the largest increase in my multi currency portfolio is in Ecuador real estate. This is because I am involved in Ecuador every day and have a feel for what is going on. Plus I know people in Ecuador that I trust.
Take for example the Vitazul Ecuador beach condos built by Kjetil Haugan.
One reason I made an investment there is because I have worked with Kjetil for more than a decade and I trust him. I first met Kjetil when he had just moved to Ecuador and was beginning to develop business there. Now, just over a decade later he has one of the largest Spanish schools in Ecuador, one of the largest travel agencies in Ecuador, two boats that tour the Galapagos, a hotel and he is building 63 condos. Here is Kjetil at the condo construction.
Over the decade Kjetil has surprised me with what he gets done again and again. So when he contacted me last November and told me about the condos and the clubhouse-hotel he was building, I immediately became interested.
Last November when he contacted me the condo clubhouse looked like this.
and the clubhouse swimming pool was…
Yet he told me that he would be operational for the new year.
I drove down from our home in the Andes shortly (January 20 to be exact) after and was the first condo investor because of trust AND WHAT I KNOW ABOUT ECUADOR. This is on the record. See what I wrote in January 2008 about this project at Ecuador Beaches.
Here is the club house now…less than a year later.
and the pool.
When I arrived nine months ago, the land where the condos were to be built looked like this.
…just nine months ago. Here it is now.
In nine months…in Ecuador…on the coast…amazing!
Yet I was able to invest at the beginning before inflation started to really bite. Investing in what you know and in those you trust pays.
Prices have risen on these condos, but still offer an incredible value, plus until October 1, Kjetil is offering the original price (a $10,000 savings) to Ecuador Living subscribers.
For details on the units below contact Thor Anderson at firstname.lastname@example.org
Before you invest anywhere, however, let me please exclaim loudly…proceed with care.
We may be seeing a systemic cleansing similar to the 20s. Even if we are not, this is a time when investors can do everything, that in the past, was right and still lose. This is one reason why I like investing in real estate (US and Ecuador) now. I know and trust real estate. Real estate is a multi currency inflation hedge. Real estate is a hedge aganst a falling US dollar. Government bail outs create inflation. Real estate is an inflation hedge.
You can see the increase of real estate in the breakdown of my own portfolio this year
Many indicators suggest that this is a time when most investors believe the market will be down, but it actually will rise…perhaps a lot. So looking for value in equities and real estate make sense now.
Invest now? Does this sound crazy? Probably no crazier than in August 2007 when everything looked so fantastic and I warned readers to reduce debt and I unloaded most of my equities, moving into cash, Ecuador real estate and bonds instead.
As you can imagine I am pretty happy about this right now. I am reviewing my exact portfolio with my multi currency course subscribers at this time. Here is a portion of what they are reviewing, the breakdown of my personal portfolio a year ago and where it is right now. The percentages are rounded.
October 2007 Total Cash 9.7%
October 2008 Cash 10%
October 2008 Foreclosure Cash 3%
October 2008 Total Cash 13%
October 2007 Equities 6%
October 2007 Emerging Equities 1.5%
October 2008 Equities 5%
October 2008 Emerging Equities 1%
October 2008 Total Equities 6%
October 2007 Bonds 31.7%
October 2007 Emerging Bonds 8.5%
October 2008 Bonds 24%
October 2008 Emerging Bonds 10%
October 2008 Total Bonds 34%
October 2007 US Farmland 21%
October 2008 US Farmland 31%
October 2007 US Commercial Property 19%
October 2008 US Commercial Property 6%
October 2007 Ecuador Property 3%
October 2008 Ecuador Property 10%
First, let me clarify that this portfolio is not totally accurate. All the property is shown at cost. Much of this was purchased as long as a decade ago and could be sold for much more than shown. Both US and Ecuador property.
Second, even without trying to estimate a real estate value the portfolio rose…just a bit…about 5%. That is less then half the performance in 2007, but for this last year I am pleased. Not losing in 2008 is good! In addition to maintaining the portfolio’s capital, I feel especially well positioned to capitalize on current events. My cash position has grown and and many of the existing bonds mature this next year. This gives me plenty of liquidity to pick up bargains created by the market correction.
Third, I did little buying or selling of equities this year. The reduction of equities in the portfolio is entirely due to drops in price of the equities held.
I mostly looked for bargains in real estate…mainly in Ecuador and picked up several.
The same is true for bonds. The reduction in bonds in the portfolio is due to
maturities and the increase in emerging markets is due to currency strengthening of the bonds held.
Last year I felt a bit like a spider sitting in its web watching the fly come closer.
Now I am ready to bite! I have committed 3% of my portfolio to buying US real estate foreclosures.
Plus I am watching equities. The time to buy may be near. You can learn why as a multi currency course subscriber
Until next message may everything you believe in be worthy of your trust.
I’ll review my entire portfolio and all this thinking next weekend. October 3-5 in North Carolina at our International Investing and Business Course. Why don’t you join me.
The course was fully booked but we had many late applications and have have moved to a larger meeting room so still have space.
Join me with Thomas Fischer of Denmark’s Jyske Global Asset Management, who was a currency trader for years to review our multi currency portfolio thinking for the year ahead.
To help our subscribers meet and learn, we are giving all delegates at the North Carolina course a FREE year’s subscription to our online multi currency course. This is a $249 value.
This will not be all work-no play. We selected this particular 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.
Join us in North Carolina next week end October 3-5 and save $249. Enroll here.
Or join us in November to inspect Ecuador property for sale
Our September 17-20 Ecuador Coastal Real Estate Tour; Quito Real Estate Tour was sold out as was our September 28-29 Imbabura Real Estate Tour was sold out.
Our Oct 14-18 Ecuador Import Export Course only has a couple of spaces open.
We still have space in November
Join us in Cotacachi at El Meson de las Flores.
Nov 7-9 International Investing and Business Made EZ Ecuador
See these condos at $46,000 in Cotacachi.
Nov 10-11 Imbabura Real Estate tour
Dine with delegates at the Vistazul clubhouse.
November 12-15, 2008 Ecuador Coastal Real Estate Tour; Quito Real Estate Tour