Diversified International Portfolio

by | Mar 17, 2010 | Archives

See an interesting diversified international portfolio strategy below.

There are several ways to beat the inevitable inflation we’ll see in the years ahead.

#1: Move to a country or place with a lower cost basis… like Ecuador or Smalltown USA.

#2: Learn how to earn extra income… and have fun in the process.

#3: Learn how to invest more wisely.

Merri and I use  all three of these tactics and in a moment we’ll share some  export income thoughts.

First here is an excerpt that looks at ways to invest more wisely from the latest message at my multi currency site:

One benefit of my business is getting to meet with and enjoy sharing ideas with numerous, very smart, investors. I consult with several of these investors on a regular basis.


Meeting with two of my Danish advisers. Sharing global investment information is fun and of great value.

Some of these very smart people are my consultants.

Because the circumstances of these investors differs from Merri’s and mine, their portfolios also differ from mine…  so I study their philosophies a lot… to understand their worldviews…  to know the investments they make… to see how they manage risk in today’s every changing world… and to look for ways to incorporate their thinking into mine.

Here is a study of the strategy of one of the advisers I have worked with for over 20 years. This strategy is similar to mine… in three ways:

Strategy Element #1: High Diversification.

Strategy Element #2: Major focus on bonds.

Strategy Element #3: Low focus on equities and equities held are in high growth areas.

Here is a glimpse of this strategy.

A minimum of  85% of the portfolio is invested bonds and bond funds.

A minimum one third of the bonds are in investment grade bonds.   A maximum of one third are in corporate bonds with lower ratings (mostly below investment grade).

A maximum of 15% of the portfolio is invested in equities.

These equities are invested in

Sector #1: Energy.

Sector #2: Alternate Energy.

Sector #3: Natural Resources.

Sector #4: Water Supplies.

Sector #5:  Mineral Water.

Risk Aversion.

For diversification, there is a spread in as many bonds and equities as is possible to minimize the risk.


The portfolio is leveraged one time.  In other words for every hundred thousand of investment, another hundred thousand is borrowed and the loan invested.


During the period September 2008 – April 2009, this portfolio went down more than 60%. Several banks used by the manager panicked and forced the sale of some investments that the manager (correctly) wanted to hold.

The manger sold some securities to lower the leverage at that time.

From April 2009 through December 2009 the portfolio rose 66%.

It has risen 4.3%  in the first 70 days of 2010 but is still well below its highest level in December 2007.

The losses in 2008 reduced the five year performance to a total 28% (appx. 5.5% per annum).

Sub Strategies.

Sub Strategy #1: Take advantage of the bond market and treat bonds like equities.

The manager says: The bond market was out of control from October 2008 through April 2009.  Many bonds were not able to be sold at all.   This was a perfect time to invest in bonds because until to-day only one bond has been settled with a real loss – and paid back only 13 cents on the dollar.   This loser was Mecachrome.

Five bonds are still not cleared:  Turanamel – NXP – Titan – Cordere – General Motors.

I think that the final losses of these bonds will be around 60% of the paid price and 0% interest for the period held.

Strategy #2:  Average down on losing bonds.

He added: In March 2009 we doubled up on nine of our ten worst performing bonds.  General Motors bonds are the only bonds we did not purchase further.

NXP came up with an offer of 32 cents on the dollar.  We instantly bought two times the value the existing NXP bonds represented in our portfolio.   Today the bonds are selling at 95 cents on the dollar.

This bond appreciation was one of the reason for our high performance in 2009. This and the fact that we had belief in this strategy (and maintained our positions).

There was an article at this time about the very bad performing corporate bonds.  This article showed that yileds were so high on these speculative grade bonds, even if half of them went bankrupt – the yield would still be higher than in government Bonds.  This article  were correct!

I bought Subordinated Capital Bonds in Den Danske Bank (Perpetual) quoted in GBP (British pounds) at 40 cents on the dollar in August 2009.  Today the price is over 80 cents on the dollar.

The effective interest at time of purchase was over 26%.

You can learn Sub Strategy #3 to Invest in growth equities and which markets this manager focuses on as a Multi Currency Subscriber.

You can learn more about investing strategies from Jyske Bank and Jyske Global Asset management as well.


I have introduced thousands of investors to Jyske over the years and continue to do so.  Here is a recent introduction, Jean Marie Butterlin from France,  who just moved to Cotacachi and will who conduct our shamanic tours… meeting in Quito with Peter Laub of Jyske Global Asset Management Copenhagen.

Share strategies with me on California.

Join Merri and me when I speak at Jyske Global Asset Management’s April 30 – May 2 Foreign Exchange Investment Seminar in Laguna Beach California.

The normal seminar fee is$499 or $750 for two.

However Jyske is providing the same discount to our premium subscribers (you) as to their clients… $399 single and $599 for a couple.

See more on the JGAM California seminar here.

There is a benefit beyond the important investing information you gain when attending the JGAM California seminar.

Every second year Jyske Bank conducts a global investing seminar in Copenhagen.  This is without question one of the most powerful investing seminars you can attend at any time.

Those who attend JGAM’s April/May California Foreign Exchange Seminar can apply the California enrollment fee as a credit towards the Copenhagen seminar fee.

See more on the Copenhagen seminar at Speakers and seminar packages JGAM

If you have questions about Jyske’s seminars contact Thomas Fischer of JGAM at fischer@jgam.com

Ecuador Export Strategy

One of the most powerful economic forces of the past century that will be with us for quite some time is the expansion of the global economy.

Participating in this expansion can be fun, fulfilling and profitable.  Creating any type of cross border business activity… in ideas, products or services… is a type export business.

This is a way to earn income as well as help the world… people engaged in enriching their lives do not have time to fight!

At our recent Super Thinking, Plus Spanish Course…. we included an Ecuador export table set up by Bonnie Keough, our export tour leader.


Here is delegate Barbara Humphrey taking a look.


She found some jewelry she liked!

Bonnie provides a perfect example of the benefits of earning through exports.  She enjoys extra income… loves having a chance to travel to new interesting countries and has found that she as a niche market at markets set up by the Cultural Survival Organization.

Her exports help create employment for poor people in Ecuador and…


included jewelry…


handmade soaps and…


food supplements.

Whether you goal is to reduce your cost of living… increase your income… enhance the return on your investments or all, having an international view increases your choices… enhances your opportunity and does the world good.


Learn how to gain earning freedom with Ecuador exports.

Apr. 17-18   Imbabura Real Estate Tour ($499 or couple $749)
Apr. 20-21  Coastal Mid Coast Real Estate Tour ($499 or couple $749)
Apr. 23-24  Quito & Mindo Real Estate Tour ($499 or couple $749)

Learn how to export Ecuador flowers and much more.

Learn more about Ecuador Roses here


Learn how Fedex delivers Ecuador Easter lilies to your home.


Learn more about our May 9-12, 2010 Cotacachi Super Thinking Plus Spanish course here.

May 9-12       Super Thinking + Spanish Course, Cotacachi Ecuador

May  13-14    Ecuador Shamanic Mingo

May  16-17    Imbabura Real Estate Tour

May  19-20    Coastal Real Estate Tour

May  22-23    Quito Real Estate Tour

May  25-26    Cuenca Real Estate Tour

You enjoy discounts by attending multiple seminars and tours.

Here are our multi tour adventure discounts.

Two Pack… 2 seminar courses & tours $998 Couple  $1,349 Save $149 on couple

Three Pack… 3 seminar courses & tours   $1399 Couple  $1,899 Save $98 single or $348 on a couple or more

Four Pack… 4 seminar courses & tours   $1,699 Couple $2,299 Save $98 single or $697 on a couple or more

Five Pack… 5 seminar courses & tours  $1,999 Couple $2,699 Save $496 single or $1,046 on a couple or more

Six Pack… 6 seminars courses & tours  $2,199 Couple $3,099 Save $795 single or $1,395 on a couple or more

Here is the balance of our 2010 schedule.

June 24       Quantum Wealth North Carolina

June 25-27    International Investing and Business North Carolina

June 28-29    Ecuador Travel & Andes

June 30-Jul 1 Imbabura Real Estate Tour

2010 Summer Schedule

July 3-4      Coastal Real Estate Tour
July 6-7      Quito Real Estate Tour
July 9-10     Cuenca Real Estate Tour

Sept.   3-6   Ecuador Export Tour
Sept.   8-9   Imbabura Real Estate Tour
Sept. 11-12   Coastal Real Estate Tour
Sept. 14-15   Cuenca Real Estate Tour
Sept. 17-18   Ecuador Shamanic Mingo

Oct.    7     Quantum Wealth North Carolina
Oct.   8-10   International Investing & Business North Carolina
Oct.   11-12  Travel to Quito and Andean Tour
Oct.  13-14   Imbabura Real Estate Tour
Oct.  16-17   Coastal Real Estate Tour
Oct.  19-20   Quito Real Estate Tour
Oct. 22-23    Cuenca Real Estate Tour

Nov.    4-7   Super Thinking + Spanish Course Florida
Nov.    8-9   Travel to Quito and Andean Tour
Nov. 10-11    Imbabura Real Estate Tour
Nov. 13-14    Coastal Real Estate Tour
Nov. 16-17    Quito Real Estate
Nov. 19-20    Cuenca Real Estate Tour

Dec.   3-5    Ecuador Shamanic Mingo
Dec.   7-8    Imbabura Real Estate Tour
Dec.  10-11   Coastal Real Estate Tour
Dec. 13-14    Quito Real Estate Tour
Dec. 16-17    Cuenca Real Estate Tour