On this day that celebrates America’s independence let’s remember that borders, walls, fences and checkpoints reduce independence as much or more than they protect.
A Wall Street Journal article, “The Cost of European Borders” (1) highlights how the free movement of people has had major economic benefits and shows the cost of adding restrictive borders.
Borders are expensive and eliminating them makes us richer.
That article shows that free borders in the EU created an enormous economic boon and reintroducing controls can be especially disruptive and expensive.
The article says: “The elimination of internal borders has boosted the trade in goods by about 3.8% and trade in services by 3.5%. Eliminating the benefits of this trade would be equivalent to imposing an average tariff of 0.74% on goods. Tourists are unlikely to spring for shorter cross-border trips if they need to spend more time at checkpoints. If intra-European import costs were to rise by 1%, it would knock 0.04 percentage points off annual economic growth for the EU as a whole between now and 2025, the Bertelsmann Stiftung calculates. That’s a cumulative €471 billion ($537 billion) in lost output.”
Yet here we are building walls, stiffening checkpoints and putting up rather than puling down barriers.
A global view is really important in these days of the global economy and accelerating change. Those who do not expand their horizons to gain from all the benefits beyond their borders could lose out… a lot.
My first book “Passport to International Profit” threw out the idea of Border Blindness.
It said: Borders are transcended by almost all human emotions. Get a pretty Italian and handsome Irishman together and they will fall in love. Put a Mexican with a cheaper tomato next to a hungry Canadian and the Canadian will get out his loonies and buy the tomato. Put an Englishman and Frenchman in a sinking ship and they will both bail water.
The market place of humanity tramples borders. The deepest nature of our existence supports free trade and free movement of all to anywhere in the world.
Modern communications and transportation have made globalization so easy and brought us the wonder of multi-cultural joys.
I have found that if we treat people with fairness and respect, these courtesies will be returned. When they move to a new place, they become the foreigners. This is true nationally as well as internationally. We moved to Hong Kong and were long nose foreign devils. We moved to England and were Yanks. We moved to Florida and were Snow Birds. We moved to Ashe County, North Carolina…where Floridians are called “Floridiots” by many who were born there.
I can sum up the benefits of being multi-national by quoting some dialogue from my novel the “65th Octave”.
In this book, the hero and heroine, Robin MacAllen and Talking Panther, stumble across a group of Controllers who try to gain control of the world’s economy. These Controllers accumulate huge amounts of shares and dump them after creating terror in the marketplace. With their extensive cash hoards, they buy up the market for pennies on the dollar. Released well before the September attack on freedom, I worried the premise was far fetched. Now the plot hardly seems dramatic enough!
Here is one of Talking Panther’s dialogues.
“In the beginning, we were one. We were in the middle and this was good. All knew the other and all were in harmony with nature. Then some of us wandered and left the middle. Some went west. Others east. We lost touch.
“In the east and the west as they settled, they forgot that there was a middle. For their sons, the east and the west became the middle. Those in the west saw the sunrise and called it the beginning as those in the east saw the same sun setting and called it the end. The difference was confusing and the confusion made the difference an issue.
“In the beginning we were one. We were united by all that was common. Then as we moved we became united by all that was different. Spread apart the view was beyond the vision of the eagle and it became easier to look at the horizon than beyond.
“Few could see that we are still part of a whole.
“This was the beginning of ignorance and its son, fear. Fear made each feel less and made each want to be more. Fear blinded the truth that all are equal and that we really are all one.”
Here is a simple tip that can help you gain more from the wonders of a multicutural world:
Read at least one non-national publication each day with an open mind.
Even if one cannot or chooses not to move… one can delve.
Living among and sharing with many cultures teaches us a lot. We learn about how many things in our own culture are petty and vice versa. We pick up some new aspects of life we would have otherwise missed!
That’s why our Purposeful Investing Course focuses on almost all of the stock markets around the world. We don’t let borders block us from seeking the best values.
Coronavirus and the Stock Market Round TwoCoronavirus and the stock market. Round Two is coming.
This virus and the market faced off in the spring. The market won. As the chart below shows, after a huge March 2020 collapse,the DJIA is almost back to its December 2019 level.
The market’s back up, but history suggests that we’ll see volatility in the ten years ahead.
Here is a chart of the Dow Jones Index for the past three decades. The .dotcom bubble burst just before the beginning of the 2000 decade.
The market then went nowhere from 2000 to 2014. Finally it started reaching new high levels.
Such decades long sideways movement after a severe correction is nothing new in the stock market.
So everything’s in order… except the pandemic. The ravages of the coronavirus dramatically increase the unknown and this uncertainty is the greatest purveyor of weakness that a stock market can have.
Such delays have profound implications for older generations who may need to cash in equities for income. How do we maximize the return on your savings and investments during this extremely dangerous time?
For the past five years, my strategy, to protect against the next stock market crash and yet gain income and appreciation from rising share prices is to invest in an equally weighted portfolio of the value based country ETFs.
We track 46 stock markets around the world in our Purposeful Investing Course (Pi) to determine which markets offer the best value so we can be in a perfect position to take advantage of stock market corrections all over the world.
Since no one knows what the future will bring, investing in value makes the most long term sense.
Our Purposeful Investing Course (Pi) teaches an easy, simple and effective approach to zeroing in on value because little time, management and guesswork is required. You are investing in a diversified portfolio of good value indices.
Sticking to math based stock market value and country ETFs eliminates the need for hours of research aimed at picking specific shares. Investing in an index is like investing in all the major shares of the market. You save time because all you have to do is invest in the ETF to gain the profit potential of the entire market.
To achieve this goal of diversification the Pi portfolio consists of Country Index ETFs.
Country Index ETFs are similar to an index mutual fund but are shares normally traded on a major stock exchange that tracks an index of shares in a specific country. ETFs do not try to beat the index they represent. The management is passive and tries to emulate the performance of the index.
A country ETF provides diversification into a basket of equities in the country covered. The expense ratios for most ETFs are lower than those of the average mutual fund as well so such ETFs provide diversification and cost efficiency.
Here is the Pifolio I personally held at the beginning of 2019. Now I am updating my plan to decide when it’s best to invest more.
70% is diversified into developed markets: Austria, Canada, China, France, Germany, Hong Kong, Italy, Japan, Norway, Singapore, Spain and the United Kingdom.
30% of the Pifolio is invested in emerging markets: Brazil, Chile, Colombia, South Korea, Malaysia and Taiwan.
iShares Country ETFs make it easy to invest in each of the good value markets.
The ETFs provide incredible diversification for safety. For example, the iShares MSCI Japan (symbol EWJ) is a Country Index ETF that tracks the investment results the Morgan Stanley Capital Index MSCI Japan Index which is composed mainly of large cap and small cap stocks traded primarily on the Tokyo Stock Exchange mainly of companies in consumer staples, financials and materials. This ETF is non-diversified outside of Japan so an investment in the ETF is an investment in hundreds of different Japanese shares.
iShares is owned by Black Rock, Inc. the world’s largest asset manager with over $4 trillion in assets under management.
There is an iShares country ETF for almost every market.
You can create your own good value strategy.
I would like to send you, on a no risk basis, a 130 page basic training course that teaches the good value strategy I use. I call this strategy Purposeful Investing (Pi). You learn all the Pi strategies, what they are, how to use them and what each can do for you, your lifestyle and investing.
When you subscribe to Pi, you immediately receive a 120 page basic training course that teaches the Pi Strategy. You learn all the Pi strategies, what they are, how to use them and what each can do for you, your lifestyle and investing.
You also begin receiving regular emailed Pifiolio updates and online access to all the Pifolio updates of the last two years. Each update examines the current activity in a Pifolio, how it is changing, why and how the changes might help your investing or not.
You also receive a 100+ page PDF value analysis of 46 stock markets (23 developed markets and 23 emerging stock markets). This analysis looks at the price to book, price to earnings, average yield and much more.
This year I will celebrate my 52nd anniversary of global investing and writing about global investing. Our reports and seminars have helped readers have better lives, with less stress yet make fortunes during up and down markets for decades. This information is invaluable to investors large and small because even small amounts can easily be invested in the good value shares we cover in our seminar.
Those five decades of experience have taught me several incredibly valuable lessons.
The first lesson is that there is always something we do not know.
The second lesson is that stock market booms and busts always eventually return to value.
Third, the only sure way to succeed is to use time not timing.
Time is your friend when you use a good value strategy. The longer you can hold onto a well balanced good value portfolio, the better the odds of outstanding success.
A 45 year portfolio study shows that holding a diversified good value portfolio (based on a good value strategy) for 13 month’s time, increases the probability of out performance to 70%. However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.
Subscribe to the first year of The Personal investing Course (Pi). The annual fee is $299, but during the pandemic to introduce you to this online course I am knocking $124.50 off the subscription.
Enroll in Pi. Get the basic training, the 46 market value report and access to all the updates of the past two years.
I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free, easy, diversified investing.
If you are not totally happy, simply let me know in the first two months for a full no fuss full refund.
You have nothing to lose except the fear. You gain the ultimate form of financial security as you reduce risk and increase profit potential.
Due to the COVID-19 pandemic we have cut the subscription to $174.50. You save $124.50!
Then because this global recovery is going to take years, we’ll maintain your subscription at just $99 a year rather than $299. Your subscription will be autorenewed in 2021 at $99, though you can cancel at any time.
Subscribe to Pi today and you get a year’s subscription to Pi now, get the 130 page basic training, the 120 page 46 market value analysis, access to over 100 previous Pifolio updates, plus begin receiving regular Pifolio updates throughout the year.