Economic Correction Opportunity

by Gary | Oct 8, 2008 | Archives

The current economic correction is creating some great investment opportunity. Here are three economic correction opportunity ideas I have seen already.

Economic correction opportunity #1: Recent messages mentioned that a golf course on Lake Yaguarcocha, just five minutes north of the city of Ibarra is for sale. This is just a little more than half hour drive along main highways north from Cotacachi. Here is the lake.

There is a ridge which runs between the lake and the city of Ibarra and from a local lookout point you get the view of the lake above and also the city below.

Here is a picture of our last real estate course delegates eating lunch at the course.

There is 22 acres in total and room to build townhouses along the course. Steve just posted a full report abut this. Here’s a shot of one of the fairways with the lake and mountains in the background.

The course includes 44 seat restaurant. (The patio can seat a further 100 people).

Steve Marchat has posted a full report on the details of the sale for Ecuador Living subscribers.

Learn how to subscribe here.

Economic correction opportunity #2: We just finished our International investing and business course in North Carolina and I outlined why I am now looking at foreclosure property for sale in Portland Oregon. Property prices are down but the potential in Portland is up.

An October 5th Oregon Live article by Eric Mortenson entitled Look our, oregon, for a global warming land rush says: By 2060, a Metro economist said, the seven-county Portland area could grow to 3.85 million people — nearly double the number here now.

Then Lorna Stickel, a planner with the Portland Water Bureau, stood to ask a question. Does the population projection, she asked, account for the possibility of climate change refugees?

That article uses Rebecca Niday, a Realtor from Florida, as an example. She moved to Rhododendron for Oregon’s more moderate weather. Experts speculate that such migration could become more common if climate change causes other areas to dry up, brown out or get increasingly hammered by storms.

The article continues: What if the American Southwest dries up, browns out, and those people now misting their patios in Arizona head to the still-green Pacific Northwest? What if Californians hit the road north in numbers far surpassing the 20,000 who now move to Oregon each year? What if the polar ice melts, oceans rise and millions living along coastal areas — or ravaged by Katrina-like storms — have to move?

What happens, as Oregon becomes more attractive and other places become less attractive?

Property prices will rise and those who buy wisely now will see prices like we will never see again. Look for places that will thrive due to global warming.

Economic correction opportunity #3: Illiquid bonds offer unusual returns. Take a look at lower quality bonds now. Take for example the US dollar 8.5% TITAN PETRO issue that matures 18/03/2012 . This bond was recently selling at a discounted price of 59.00 so its yield was 26.93%. Then that discount dropped even more so the issue had a 45% yield. The risk premium is way out of line…much more than the risk.

Some General Motors bonds are paying 70% interest.

We are creating a complete report about these bondsfor our Multi Currency Course subscribers.

Learn how to subscribe to our Multi Currency Portfolios Course here.

This time of economic correction was predictable. So too are the profits that will be made from this shift.

I look forward to sharing the opportunity with you.

Gary

Merri and I love our lives in North Carolina’s mountains but autumn’s frosty bite has arrived. The trees along the creek are golden now.

Instead of sitting in the cold and gray we move to Ecuador’s Pacific coast and Cotacachi, enjoying warm, sunny weather at unbelievably low prices.

Many who join us pay for their trips with Ecuador products they buy and export. One delegate who just visited told us he bought 150 Ecuador shawls at $1.50 and exported them to sell at $19.95. He paid for his entire trip and made a small profit.

At our Ecuador exports course we look at how to combine ideas and products to make them worth more. For example here I combined Ecuadorian carpets with Ecuadorian carved wood frames to make Ecuadorian art.

Our Oct 14-18 Ecuador Import Export Course is a great place to do your Christmas shopping and learn how to have an Ecuador export business in the process. The course has one space left. See more here.

Learn this November more about Ecuador and emerging bonds. Join Merri, me, Steve, Kjetil Haugan and Peter Conradsen of Jyske Global Asset Management in Cotacachi Ecuador. We’ll review economic conditions, Ecuador real estate, my entire portfolio and investing and business ideas for the months ahead.

Nov 7-9 2008 International Investing and Business Made EZ Ecuador

Stay on for our Imbabura real estate extension. See wonderful condos for sale at $46,000 in Cotacachi with beautiful hardwood interiors like this.