Ted Bauman Blog | Time Is Running Out To Turbocharge Your Investments | Talkmarkets - Page 2
Editor, The Bauman Letter
Contributor's Links: Banyan Hill Publishing

Ted Bauman joined Banyan Hill Publishing in 2013 and serves as the editor of The Bauman Letter, Plan B Club and Smart Money Alert, specializing in asset protection, privacy, international migration issues and low-risk investment strategies. He lives ... more

Time Is Running Out To Turbocharge Your Investments

Date: Monday, November 20, 2017 9:38 PM EST

In fact, it’s already happening. The dollar has weakened against the euro significantly this year:

And this presents an opportunity for you.

Buy Now, Earn Later

Many foreign assets are priced in foreign currencies. From equities to artwork, anything priced in a currency weaker than the dollar can be a bargain, depending on how quickly prices adjust. Typically, it takes a long time for foreign assets priced in local currency to adjust to a decline against the dollar … during which time you can find some real bargains.

That’s a great thing when you’re buying collectibles or other things that don’t generate revenue streams on their own. But when you buy an asset that produces a future stream of income, exchange-rate movements can make you rich.

Let’s say you buy shares in a foreign company priced in local currency. A strong dollar makes them cheap.

But when the dollar declines in value, as it must eventually, those foreign shares — and the dividends they produce — are going to provide you with extra income because they’ll be worth more in dollar terms than when you bought them.

In other words, your foreign investments will get an “exchange-rate turbocharge.”

They Aren’t Making Any More of This Asset

It can be difficult to trade in foreign equities. It requires either a foreign brokerage account or a U.S. broker that can trade for you, charging extra fees. It’s worth doing, but as I wrote in The Bauman Letter some months back, many people are opting for exchange-traded funds (ETFs) based on foreign stock markets instead.

But there’s another way to turbocharge a revenue-producing asset play with shifting exchange rates: Buy some foreign farmland.

For example, there’s a foreign country I know well where you can buy land suitable for forestry for less than $1,200 an acre. Historically, returns on forestry are in the 10-12% range annually. On top of that, the price of this land is appreciating at about 2-5% per year.

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