Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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Gain Access to
Foreign Markets and Discover 10%-Plus Yields |
Published: August 4, 2008
Traders in Cairo watched their local stock market gain +1,588%
over the past five years (for the period ended June 11th). The
story was similar in the Ukraine, where stocks gained +1,572%,
and in Peru, which inked a +1,031% advance.
Not many people, even financial experts, know about
those eye-popping results, so you shouldn't feel bad if
you missed these incredible returns.
But the odds are you'll miss the boat completely on
gains like that if you keep investing the way you always
have. And then you might feel like kicking yourself, because
capturing these impressive triple- and even quadruple-digit
gains is surprisingly easy to do.
Now, not long ago, that wasn't true. Most investors
simply couldn't participate in faraway markets like Egypt,
Peru and the Ukraine. But today, no
American has to miss the international investment party: The
far side of the world is as close as your computer. It's
simple -- and astonishingly inexpensive -- to invest in
international markets. You can even use the same brokerage
account you have now.
Consider these three opportunities:
 Mexican bonds with a 10% coupon. These
sovereign bonds are investment grade, according to Moody's and Standard &
Poor's, both of which give the country a "stable" outlook. To sweeten the pot even
more, the peso has gained +8.8%
against the dollar so far this year, which magnifies returns
for U.S. investors.
A bond investors paid 10,000 pesos for on
Jan. 1st cost
$917.90, but it's going to yield
nearly 11%, as the 1,000 pesos in interest are
now worth $99.86 instead of $91.79. A 10% coupon
is nice enough, but an 11% actual yield is even nicer.
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The Yellow Pages Income Fund, a limited-purpose
trust in Canada. It's paying a rich 12.4% dividend yield. You like that the trust, which owns the phone book, has
increased its total revenue by +155.0% since 2004, but you
love
that its net income has burgeoned by +397.2% in the same time. The higher a trust's net, the higher it's
payout, period. It must pass the money to
its owners. |
Trygvesta, an insurer that operates in Denmark,
Norway and Finland. Shares in the company, which trade
in Copenhagen, were first offered in October 2005. They've
since gained +111.8%, turning a $10,000
investment into $21,180.
That's not bad, but check out the icing on the
cake: The Danish krone, in
which dividends are paid, has risen +40% against the dollar.
That means long-term U.S. holders are earning a
10% dividend yield in dollars -- far greater
then the
current 4.8% yield that's being paid today to
investors who buy in krones. Finally, a way to
make the weak dollar work for you,
not against you! |
How to Buy Assets Most Americans Can't Get Their
Hands On
There's a lot to like about all
of these investments. They're on the conservative side,
they're stable, they offer a nice yield. They protect your
assets from a declining domestic market, and they each take
advantage of the weak U.S. dollar.
But there's one problem ... You can't buy these investments in the United States.
Now, that doesn't mean it's impossible to invest in
these assets. But doing so presents a few challenges. For one, you'll need a brokerage that can execute trades in
Mexico City, Toronto and Copenhagen. Discount brokers don't,
and even most full-service brokerages aren't set up to
handle these trades. You'll also need a substantial
block of capital, and you'll need to be willing to shoulder high commissions
and extra fees. And it would be a good idea to be
conversant with the tax policies of these three countries so
as to judge each investment's net performance.
All of that can be done, of course. But it adds a few
steps.
Surely someone has remedied this, right? Isn't there an
easier way to put your money to work in international
markets? Absolutely.
And the best part is that the "easier" way is also the
better way. The three
investments I mentioned all can be made without opening a new brokerage
account ... without allocating tens or hundreds of thousands
of dollars ... and without finding a broker or a tax adviser
to wade through all of the rules and red tape. If you want to gain instant exposure to these three foreign
securities, then you
only need to know three letters -- ETF.
Each of those investments, and a few
dozen others that are just as compelling, can be made by
purchasing shares in Evergreen International Balanced Income
Fund, an exchange-traded fund that trades under the ticker EBI. Your money will be put to work all over the world, in
scores of fixed-income and equity investments, and you'll
receive a check -- not just each quarter but every month --
that represents a 10.1% annual divided yield. And here's the
kicker: You can do all this from the same brokerage account
you normally use.
International ETFs Truly Offer a World of Choices
Investors can choose from more
than 500 internationally focused ETFs that offer access to
foreign securities you can't otherwise buy on U.S.
exchanges. These investments are your passport to markets
across Europe and South America and in countries like India and
China.
I mentioned the standout returns in Peru, Ukraine and
Egypt. Take a look at Brazil: For the five years ended June
1st, the market there was up +781%. EWZ, a fund that tracks
the Brazilian market, rose even higher than that. It notched
gains of +921%. Hold on to your hat: Your dollars in U.S.
markets earned only 1/20th as much during that time!
Now, not only can you put your money to work in scores
of other countries, you also can choose precisely which
foreign sectors you want to invest in: The SPDR series of
ETFs just launched 10 ETFs that cover areas like health
care, telecom and consumer staples.
One of the great benefits of ETFs is their low costs.
Management fees, on average, are a paltry 0.32%. That means
you're only paying 32 cents for every $100 you invest
-- you have more than that in the cup holder of your car!
ETFs offer international securities far, far more cheaply
than if you invested in those countries directly. EBI's fee is a modest 1.2%, but it's providing a crazy
amount of value by offering not only strong growth but also
a rich dividend stream -- that's the best of both worlds.
Smart Investors Have Always Invested Abroad
The U.S. economy, though huge,
accounts for only 24% of the world's financial picture. That
means most business takes place outside of the United
States. It turns out that putting your money to work
overseas has always been a direct path to gains.
This is
especially true with ETFs. Of the 20 top-performing funds
with five-year histories, 15 were internationally focused. Of the top 50 ETFs, 39 of them -- more than three-quarters
-- invested outside the U.S. borders.
If
you'd like to learn the names of my favorite ETFs, plus
receive a steady stream of inside information on this
little-known but overwhelmingly large corner of the
investing world, then you might want to check out my premium
investing service --
The ETF Authority. It's the
only newsletter of its kind devoted to helping readers like
you capture the best returns and highest yields the world
has to offer. In my current issue, I profile an ETF
boasting a 15.2% dividend yield. After trading at a
steep double-digit premium as recently as three months ago,
this fund can now be picked up below its net asset value.
Good investing!
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Nathan Slaughter
Editor
The ETF Authority, Half-Priced Stocks
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| To receive
in-depth guidance on today's leading exchange-traded funds (ETFs), plus
a proprietary ranking system designed to uncover today's most
profitable funds, please subscribe to
Nathan Slaughter's premium ETF investing newsletter -- The
ETF Authority |
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