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By Gary Scott You can view my portfolio of a year ago
Here are some facts to note about changes made in this portfolio. First, I measure my performance with only one benchmark...my cost of living. I have one simple goal....to pay for my cost of living and end up with a higher value portfolio than before. In this case the liquid performance is up 12.57% in the last year without revaluing the real estate in the portfolio. Second, This portfolio has been weakened by the rising US dollar, but I see many reasons why the U.S. dollar will weaken mid term so have not hedged the high non dollar position or tried to alter this. In fact I have used the strong dollar to add more non dollar shares. Third, I have increased my real estate position from 46% to 54% and am looking to take profits on some property and will roll over the profits into more inflation fighting investments either property or equities. Fourth, I believe that U.S. inflation continues to be understated and is finally becoming more obvious. This is why the real estate and equities are being added as bonds mature. Fifth, 4% of my portfolio remains borrowed in Swiss Francs at 2.25% to enhance the earnings from the Euro and European currencies that are earning an average of 4.5% so this loan is earning and extra 2.5% on that portion of the portfolio. Finally the percentage of the gold and silver remains about as it has been. This is a portfolio that provides income (12.57%) but is shifting gradually into a greater capital appreciation mode. P.S. The MultiCurrency Sandwich has created profits again and again. One great, very exciting Sandwich has lasted nearly two decades. Back at the end of 1988, the Yen hit dizzy heights in the 120 Yen per U.S Dollar range. Yen interest rates dropped into the low 4% range. This created a classic sandwich opportunity. The yen was a strong currency at an all time high with a low interest rate. This is the formula that Multicurrency Sandwich investors ALWAYS WANT. All these years later the yen is still in the 120 per dollar range and the interest rate has fallen as low as 1.62%! This means that the Sandwich opportunity is excellent RIGHT NOW. Original readers of my report Borrow Low-Deposit High: How to Use the Multicurrency Sandwich have been able to borrow yen at low rates and redeposit the loans in other currencies at much higher rates (without forex loss) for 17 years! Imagine this. The yen loan cost has averaged 2%. The US dollar has averaged 4% over this period. If one invested $100,000 in safe US dollar bonds or CDS for this period and used this loan as collateral to borrow $400,000 worth of yen to reinvest in safe US dollar cds or bonds, he has earned an average $12,000 a year and turned a safe 4% investment into a safe 12% investment. This is an extra $144,000 of income (on a $100,000 investment) over the 18 years! Yet smart MultiCurrency Sandwich investors have done much, much better. They invested in other much higher yielding currencies and made even more! You can learn why the MultiCurrency Sandwich strategy continues to work and what to do now in my new updated (I am updating it now and it will be ready this month!) Borrow Low-Deposit High: How to Use the Multicurrency Sandwich. This email report explains everything you need to know about how to create and invest in the MultiCurrency Sandwich right up to date. You can purchase this report below. Better still! Buy our annual email MultiCurrency Sandwich service and get the email report free. Track four MultiCurrency Sandwiches on a regular basis. Learn why and how they rise and or fall. See how much you can expand your profits in four different ways. DETAILS
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Have a passion for travel? Well take a trip... and take good notes about what you did and where you went.
All contact copyright Gary A. Scott (1968-2006) unless noted otherwise