December 2004 Archives

By John Berlau -

The USA PATRIOT Act lets the feds spy on your finances. But does it help catch terrorists?

"This is really a bill which, if enacted into law, will be [a longer] step in the direction of stopping terrorism than any other we have had before this Congress in a long time," one of the bill’s sponsors declared. The legislation authorized broad surveillance of financial transactions, bypassing the Fourth Amendment’s normal protections against "unreasonable searches and seizures" by requiring businesses to collect and share information with the government. After the measure passed and was signed into law, the debate was far from over. The American Civil Liberties Union and other critics continued to rail against the law as an unnecessary breach of privacy.

His strategy wins nation clout on the global stage

BRASÍLIA Foreign Minister Celso Amorim, a cinema buff and former movie producer, likes to go over a script in his mind of Brazil's future.

In it, Brazil shakes its postcolonial insecurity and takes the helm of South America to the United Nations, where it lands a full-time seat on an enlarged Security Council, along with its "kindred spirit," India. Latin America's largest country also helps rewrite rules about access to global agriculture markets. Finally, it shrinks poverty for its 184 million residents through stronger trade ties with Asia.

By Jonathan Curshen -

People of means living in places where it seems civil war never ends, like the Balkans, home to the shards of the former Yugoslavia, or people facing continued political uncertainty, such as Hong Kong since the 1997 hand-over to Communist Beijing, obviously may need a safe refuge for escape. If besieged people enjoy the legal status afforded by a second nationality, their chance of safety is far more certain. In a time when threats turn into physical menace they simply head to their "other" country.

By Dorothy Kosich -

Perhaps, no one watched the events of the past week more closely than the "silver barons."

As streetTRACKS Gold Trust reaped $1.3 billion in its first three days of trading, and set a volume record for derivatives on its opening day, one can bet the minds of these pure silver company CEOs were chomping at the bit to unveil next generation of commodity-backed ETFs.

By Barnini Chakraborty -

NEW YORK (Dow Jones)--American depositary receipts edged higher Tuesday as commodity names in Latin America rallied on expectations of stronger demand in 2005.

The Bank of New York Index of American depositary receipts rose 0.34 to 119.97. The Latin American market rose 1.64 points to 133.30. Asia's index added 0.58 to 109.35, and Europe's index rose 0.20 to 124.51.

By Jonathan Curshen -

While domestic LLCs offer a margin of asset protection, they are still under the jurisdiction of the U.S. court system. As such, almost any United States court - in any jurisdiction - can pierce the corporate veil to examine book, seize funds and/or assets in the event of unfavorable court rulings against the corporation.

In this regard, offshore LLCs offer two measures of additional protection: 1. LLCs formed in countries sponsoring favorable LLC business legislation for outside companies or individuals offer tightly structured secrecy laws regarding a company’s funds or investment portfolio; 2. Companies formed in selected countries are not under the jurisdiction of the United States Court system.

By Jonathan Curshen -

In recent years there has been a noticeable increase in smaller countries competing for a larger slice of the growing offshore financial market.

While many smaller countries were once under large countries foreign empirical control, they are now independent and free to plot a self-directed course by which they can grow and prosper.

The Swiss Variable Annuity is also a contract with a Swiss insurance company. But as with any variable annuity, the return on your investment varies depending on the underlying investments you select. The Swiss Variable Annuity offers various sub-accounts managed by the Swiss insurance company through which the annuity contract is written or by specifically selected asset managers.Of special interest could be the "Sovereign Secure Portfolio" which gives you access to first class hedge fund portfolios with an exceptional track record. For U.S. investors, an important advantage of the Swiss Variable Annuity is that growth within the contract is tax-deferred. This is not the case with the Swiss Fixed Annuity.

The Swiss Fixed Annuity is a contract with a stable Swiss insurance company that guarantees your principal and all interest payments. It has a flexible duration, and may be liquidated at any time. It is one of the very few interest-bearing investments in Switzerland not subject to Swiss withholding tax. Principal and interest are guaranteed byfirst class companies, non-guaranteed profit sharing dividends increase your total return. The total return is comparable to that of government bonds. However, the Swiss Fixed Annuity is even more safe than government bonds, since you don't have any market risk. At all times, you know your investment is safe and available.

Financial success may make any investor a potential magnet for litigation. Wealth has never been as vulnerable as it is today. Indeed, loss of assets through lawsuits and legal awards as well as government action is spreading all over the world. To deal with these unprecedented threats to your wealth, The Sovereign Society, in conjunction with NMG International Financial Services Ltd, has developed two unique asset protection programs for our membership, both utilizing the Swiss insurance industry and both specifically designed to combine Swiss safety, privacy and rock-solid asset protection. Both are shielded from potential creditors under the guarantee of strict privacy and protection by Swiss insurance laws. Put the world-renowned stability and security of Switzerland, and its insurance companies, to work for you!

The government on Monday decided that a modification of the law on nationality would come into force on January 1, 2006.

Explaining the new procedure, the justice and police ministry said that cantons and municipalities would only be allowed to charge for the real processing costs.

Charges in the thousands of francs would no longer be permitted, it added.

BOSTON, Dec 9 (Reuters) - An exchange-traded fund that holds shares in 38 U.S.-listed Chinese companies was launched on Thursday, the first China ETF to solely invest in Chinese companies that trade on U.S. stock exchanges.

PowerShares Capital Management, of Wheaton, Illinois, said its PowerShares China ETF is based on the Halter USX China Index, which tracks Chinese public companies trading on U.S. stock exchanges.

"(The fund gives) investors the value of the region and the controls on the U.S. market because companies are forced to meet a much higher regulatory bar than if they were just listed in China," Bruce Bond, president of PowerShares Capital Management, said in an interview.

By Jonathan Curshen -

In theory, if maximum asset protection is your stated goal, nearly all moveable and liquid assets should be transferred physically to fund the offshore APT as soon as it is created. That includes cash and evidence of intangible assets such as stocks, bonds and other securities. These should be placed in the custody of the offshore bank or brokerage, to be used by the trustee. A formal assignment of title to the trust for each item should be executed by the grantor. Easily portable assets such as precious metals, coins, jewelry, or gem stones also can be transferred, with written evidence of the title transfer to the trust also needed.

By Bill Cara -

Whenever you hear the term ‘sector rotation’ in equity markets, you can be sure there are important things changing in the macro picture. As you know, the big picture today is one of a return to global economic growth, and higher commodity prices and interest rates. Now, it’s pretty hard to have economic growth without higher commodity prices and interest rates. They go together like Bacon-Lettuce-Tomato in a sandwich. And, as long as the ingredients are in balance, there is not much for investors to do but enjoy. Too much of one or another, however, spoils the sandwich.

By Bill Cara -

In my view, sticking to the common myth that bonds should be bought and then stored in a safety deposit box is a foolish way to invest. Bonds are investment instruments that must be traded like you would trade a stock.

To most of you, a bond is a secure, mostly stagnant investment that provides a fixed annual income and can be redeemed at maturity for the same amount of dollars used to purchase it when issued.

By Jonathan Curshen -

Legality The single most important consideration when evaluating the usefulness of an alternative citizenship is that it be legal in every respect. That fact may seem obvious, but the proliferation of fly-by-night passport fraud operations requires not only this reminder, but strict adherence to it when making second passport plans and decisions.

If you are going to expend a considerable sum of money to acquire a second citizenship and then use a second passport as your basis of personal international movement, you should demand that these documents and your status be in strict accord with the constitution and laws of the issuing nation.

By Jonathan Curshen -

Citizenship can be loosely defined as the legal relationship between a person and the sovereign nation in which he or she lives, a status defined by the law of that nation, conferring or limiting a person’s duties and rights. The most common means of acquiring citizenship is by birth within the borders of a nation.

Naturalization is the formal legal process through which one legally can acquire a second, or alternative citizenship and the right to a second passport.

By Bill Cara -

The market is the theatre of life where the play is all about time and money. If investing represents our journey and trading mirrors the paths we take, then the market is the big show, the place all of us experience it.

Anything you read from the Trader Wizard will echo the following insightful words of Charles Dow.

Mr. Dow is someone who understood that the market is all about life, and nothing more. At the turn of the century, he said: "The man who is prudent and careful in carrying on a store, factory or real estate business seems to think that totally different methods should be employed in dealing with stocks. Nothing is further from the truth."