Multi Currency Investing Primer Chpt. 1

by | Jan 2, 2009 | Archives

Multi  currency investing  and diversification are vital now as a recent message about the potential 2011 economic crisis points out.

Global economic problems have led to many rumors about Ecuador’s financial health.

Regretfully these econmic woes go way beyond Ecuador.  The financial crisis and fundamental financial problems are global.

The 2008 multi currency downturn changed everything.

A 2011 crisis will make events even worse which is why I am updating a course on multi currency investing for my multi currency portfolio subscribers.

Here is an excerpt from lesson one that was sent to multi curre3cny subscribers  today.

* WHAT TO DO NOW: Be a multi currency Investor. This course updates through the year 2012 why all of us are multi currency spenders and should be multi currency investors now. See below.

* MULTI CURRENCY INVESTING SAFETY: Learn who can really protect your wealth. This primer explains important lesson about politics and currencies.

* EZ PROFIT: Increase Earnings Through Leverage.  Diversify in the right currencies first for safety. When you do, your money can gain extra growth.  At times it makes sense to leverage your potential when you borrow low and deposit high.  See why here.

Imagine the room-walnut paneled with carpeting that is deep blue, rich and plush. The table of polished oak is heavy and important, as are the men that sit around it. Tension hangs, thick. A soft hum, steady and calm, perhaps from a heating fan, goes unnoticed in the deathly silence. These men are powerful, but now they are afraid. The fear shows. They fidget, squirm, their faces tight with the tension. Many of them go pale when the man at the head of the table finally speaks. “Gentlemen, the nation is closer to a monetary collapse than we would like to believe.”

This scene sounds like one we would see in a tense melodrama at the movies. Even worse we could imagine that this was real.

Regretfully the statement came from a melodrama that was (and remains) all too real. This scene is not based on fiction but actually took place in the United States of America at the headquarters of one of the most powerful financial institutions in the world, The Federal Reserve Bank. The man speaking was the chairman of the Federal Reserve, Alan Greenspan. The statement that the United States is closer to a monetary collapse than we would like to believe, is his and regretfully was then and is still now very, very real.

To make matters most unfortunate, this meeting did not just happen. The statement was made by Mr. Greenspan just after Black Friday, October 1987 when the U.S. stock market crashed.

At that time, Federal Reserve policy makers met and grimly speculated that a run on the dollar might trigger renewed chaos or that consumer confidence might cause a recession. Despite their reassuring public pronouncements, they confessed privately to an inability to foresee the economy’s future with any certainty. Greenspan underscored the seriousness of the situation saying at one point, “The nation is closer to a monetary collapse than we would like to believe.” So great was his concern that the meeting was kept secret, and this information was only revealed more than a decade later.

What is worse, that secret meeting was instrumental in starting a wave of global government interference in financial markets that has continued to this day. This interference dammed the normal waves of world currency and stock market.  This interference created, like a huge dam, a lake of apparent economic calm that masked the turmoil of true currents beneath the placid surface.

The interference has continued and grown into an international  affair, holding back corrections, again and again, until finally in 2008 the dam of global government interference burst.

That secret meeting and the economic rupture 20 years later can be good news for you!  This course explains why the rapids of global economic and currency correction that we are navigating now can help you enhance your wealth.

If you use the 1987 meeting and the 2008 global economic correction as warnings about the enormous currency dangers that exist right now, then that 1987 meeting will have been of great benefit to you. That warning and the lessons in this course can bring you increased safety and immense financial rewards.

My name is Gary Scott. I have been  investing and doing business and  writing about it  for nearly 41 years (I began May 1968).

Since 1971, I have known about and taken advantage of the currency risks created by the public servants who handle government finances.  As was the case with that meeting in 1987, the public is often intentionally misled and kept in the dark for fear that truth will create a negative political consequence.  This course tries to shed as much light on that darkness as it can.

Reading about that secret 1987 meeting had a profound impact on me. We, as investors all over the world, were misled about dangers that could dramatically affect our wealth! This gave me  two realizations that led to two important and urgent facts of investing.

The first realization was that my belief that the U.S. dollar and U.S. monetary system were at extreme risk and had been for nearly a decade was absolutely correct. The global currency system was being held together with little more than a confidence trick. It was clear to see that this system would eventually crash.

The second fact I learned was that we, as investors, will not be forewarned by the government or the large financial institutions. We are on our own.  We must look beyond what our political and major financial institutions tell us. The political system, big banks and brokers have too much at stake. They all fear that the truth about the world’s currency system will create a self-prophesy of doom….as it did in 2008…bringing down some of the largest financial institutions in the world.

The two realizations  led me to create this course nearly 15 years ago. The 2008 crash has led to this update.

Our currency problem is global. The dollar, though under incredible pressure, remains the reserve currency of the world. What will happen when the dollar collapses further?  What will happen to other currencies when the reserves (in dollars) of thousands of non U.S. governments/banks collapse?

This led me to see the urgent importance that exists for global currency diversification and this course will look at ways to diversify now.

Knowledge You Can Use

This course will give you an indepth understanding of currencies, but also will give you many contacts that can further your knowledge. Contacts that you can easily use!

The course format gives information to you in four different ways:

#1: Educational Text
#2: Case Studies
#3: Glossaries
#4: Contacts.

The Contact Section gives you a way to expand the knowledge you gain from the course and allows you to customize what you learn to meet your own particular needs.

In the Contact Section we introduce ways to actually invest in overseas currencies.

The investments and contacts provided in the contacts sections are not recommendations. These are shown for your review and investigation with your financial adviser.   Our goal in including them is to give you a variety of contacts so you can continue learning directly from contacts that may help you put your knowledge to use.

If you plan to do business with any of these contacts you should exercise normal care and caution.    Take the same precautions you would before choosing to do business with any firm. Check and make sure that any firm you do business with is reliable and can provide the services you need with fees that you find acceptable.

2008 taught us that there are no firms we can trust without careful investigation.

Where to Diversify and How Much

One of the main questions to answer when developing a multi currency portfolio for your needs is what percentage of the portfolio should be in cash, in bonds, in equities, in real estate and in commodities.

We’ll use Jyske Bank as our guide through this course so let’ see how they do it.

The three Jyske main portfolio breakdowns are:

Low Risk Multi Currency Portfolio: This s diverisifed Fixed Income 70%,  Equities 20%,  Alternatives 5%,  Cash 5%.

Medium Risk Multi Currency Portfolio: Fixed Income, 40%,  Equities 50%,  Alternatives 5%, Cash 5%.

High Risk Multi Currency Portfolio: Fixed Income  10%, Equities 80%,  Alternatives 5%,  Cash 5%.

So part of the difference between low and high risk is how much cash…stocks and bonds are held in a portfolio.  This is only one aspect of safety, but is an imporant one so here we begin by earnng more about how to hold multi currencies in cash.

In this first contacts section, we look at multi currency ETFs as a way to diversify in cash oriented multi currency investments. Multi currency ETFs  are among the easiest and safest ways to diversify in currencies abroad.

Multi currency ETFs  let investors choose which currencies to hold. They allow complete flexibility getting in and out. These shares also offer a high degree of safety.

In previous years the easiest way to hold cash was to simply open multi currency savings accounts in overseas banks or to invest in multi currency certificates of deposit.

Over the years, global banking regulations have become more complex and more expensive for banks to comply with.  This has forced banks to restrict accounts, raise fees and minimum accounts sizes…making this option difficult or impractical except for larger investors.

Currency ETFs have filled this void.

ETFs are exchange-traded funds. These mutual fund type stocks trade on stock exchanges like a normal stock.

An ETF holds assets such as stocks, bonds or currency deposits. ETFs Are meant to track, rather than beat, their Bellwether  so they trade at about the net asset value of the underlying assets held.

Some ETFs for example track a stock or bond index, such as the Dow Jones Industrial Average.  A Dow Industrial ETF will not try to do better than the Dow. The ETFs role is to equal the movement of the Dow.   A Dow ETF would hold essentially the same shares in the same weighting as the Dow Industrial Index.

The manager of a managed Dow fund would try to do better than the Dow. An ETF anager is simply trying to get the fund’s performance to emulate the Dow.

ETFs are attractive and easy to use as investments because they have low costs, tax efficiency, and stock-like features.

ETFs costs are the brokerage fee to buy and sell them and a management fee.

Each buy and sell is subject to a brokerage commission depending on the broker.

Large investments pay a lower percentage then small.  Investors should compare brokerage firms to see which has the best fee arrangement for the type of investing planned.

Most ETFs also have a low expense ratio. Most charge between 0.1% to 1%.
ETFs are considered no-load investments.

ETFs are also tax efficient.   Investors sell ETFs on the stock market, as they would a stock, so usually realize capital gains when they sell.

Currency exchange-traded funds (ETFs) are quite new and make it simpler to invest in multi currency cash.

Currency ETFs allow even small investors to diversify in multi currencies.

This is a great benefit.  The ETF stock-like feature means that investors can carry out the same types of trade on cash investments as they can with stock investments.   ETFs can be sold short, with limit or stop-loss orders,  bought on margin and invested with as much or as little money as desired.  There is no minimum investment.

Currency ETFs  allow investors to invest in euro, the British pound, the Canadian dollar, the Japanese yen, the Swiss franc, the Australian dollar and more as shown below.

You can receive the balance of this lesson plus much more as a multi currency investing course subscriber. See why here.


Join us at a course about multi currecny investing or Ecuador livng in Cotacachi or on Ecuador’s coast this winter.

Jan. 16-21 Ecuador Spanish Course

Jan. 22-23 Imbabura Real Estate Tour

See condos like this in Cotacachi for $46,500.


Jan. 24-27 Coastal Real Estate Tour

See Manta condos like this one. Delegates are inspecting the 1,000+ square foot patio.


The patio has this view.

Feb. 9-11 Beyond Logic-Shamanic Mingo

Feb. 13-15 International Business & Investing Made EZ

Feb. 16-17 Imbabura Real Estate Tour

March 8-9 Imbabura Real Estate Tour

March 10-15 Ecuador Export Expedition

March 16-19 Coastal Real Estate Tour

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one$1,799 for two

Here is our Ecuador tour schedule for the balance of 2009.

Date                    Course                      Couples Fee

May 21-26  Ecuador Spanish Course         ($999)
May 27-28  Imbabura Real Estate Tour      ($749)

June 12-15  Shamanic Mingo Tour             ($999)
June 16-17  Imbabura Real Estate Tour      ($749)
June 18-21  Coastal Real Estate Tour         ($749)

July 2-7       Ecuador Import Export Expedition ($1,499)
July 8-9       Imbabura Real Estate Tour     ($749)
July 10-13   Coastal Real Estate Tour        ($749)

Sept. 17-22  Ecuador Spanish Course        ($999)
Sept. 23-24  Imbabura Real Estate Tour     ($749)
Sept. 25-28  Coastal Real Estate Tour        ($749)

Oct. 21-26   Ecuador Import Export Expedition ($1,499)

Nov. 6-8       International Investing and Business Made EZ Ecuador ($999)
Nov. 9-10     Imbabura Real Estate Tour          ($749)
Nov. 11-14   Coastal Real Estate Tour            ($749)

You should normally plan to arrive in Quito two
days before the course.  We will pick you up at the airport, help you
to your hotel in Quito and bring the group to Cotacachi by coach.

For coastal tours we travel as a group from Quito
to Manta by air, then tour the coast for two and a half days returning
to Quito on the evening of the third day.

Attend any two Ecuador courses or tours in a calendar month…$949 for one$1,349 for two

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one$1,799 for two

Better still join us all year in Ecuador! See our entire schedule of 27 courses, tours, mingos and expeditions we’ll conduct in 2009.

The course fee includes meeting at Quito airport (day before the
course)…transportation (by group bus) to Cotacachi and back to Quito.
Course fee does not include air are. accommodations, food or individual transportation.


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