Alternative Investments can include futures & options (derivatives), currencies, real estate, private purchase programs, as well as hedge fund investments and private equity investments – many using sophisticated, diversified strategies, and usually are considered riskier than traditional investments. As a general rule, many people believe that no more than 10% of one’s liquid net-worth should be allocated to alternative investments. We believe when properly structured, these investments can be quite attractive and although still considered very high risk when compared to a typical “run-of-the-mill” investment, they should not necessarily all be treated equally in terms of risk, as there can be quite a variance from one program to another.

One of the largest advantages of many Alternative Investments is in their ability to profit in virtually ANY economic environment. Time after time, the successful growth of this investment class thrives regardless of conditions such as a strong economy, low inflation, high interest rates, or a depressed stock market. The success of these investments typically depends on performance, as well as the risk and diversification used. Investors adding this asset class to their portfolio can help reduce volatility, minimize risk, and possibly increase the risk versus return ratio of their overall portfolio. Because of this, it is no surprise that alternative investments have increased dramatically in popularity over the past 10 years as investors search for alternatives to traditional markets. It is more common now to see these types of investments used in typical portfolio management strategies.

This offshore company (non-USA) provides forex and alternative investment related financial consultancy services as well as brokerage and FCM consultancy services with the intent to provide unique opportunities to investors and to educate investors in the alternative investment trade.

The company is responsible for all live trading activity and managed programs and includes a team of professionals with extensive practical experience and formal education in the alternative investment and trading industry. The  team has ample experience as investors and traders, as well as money managers, investment consultants, designers of trading systems, analysts, and educators. They work closely with various stakeholders in the industry and are always building and growing a network of contacts. This is a truly global company, in that our team has a wide reach, with partners residing across the globe in Canada, USA, Europe and New Zealand.

Due to the fact that many of the FX trading systems utilized in the managed accounts consist of various different scalping strategies, the company thought it would be both beneficial and educational for  investors and prospective investors alike to understand a little bit about this trading technique.

Scalping strategies typically attempt to capture profits on small price changes across various currency pairs. Systems which implement scalping strategies will usually place anywhere from 5 to 100+ trades in a single day in the conviction that multiple small moves are easier to catch than large ones. The main goal is to place a number of trades which meet certain parameters, and then quickly close them at a few pips higher (or lower) for a profit. Many small profits can easily compound into large gains if a strict exit strategy is adhered to in order to prevent multiple large losses from occurring.

The premise behind most scalping strategies is that of the “dine and dash” principal – get in quick, grab a fast, albeit small profit and then get out unscathed. The less time you spend in the market the less risk exposure you have to adverse price movements or long-term trends. What this typically means is that the overall equity gain in profit comes from the accumulation of many small wins over time. Unfortunately with scalping strategies there’s also the inevitable large losing trade that we need to deal with from time to time.

As mentioned above, most classic scalping strategies accumulate many small wins over time, and then eat the occasional large loss. While losses are rarer than winners, unfortunately the loss is often many times larger than each individual small win and can have a sizable impact on the system’s overall performance.

Now, in a successful system the small wins over the long run will in fact win out over the less frequent large losing trades. When scalping is done correctly it can be one of the fastest and most profitable trading methodologies one can employ to increase the equity in their account. It’s also a strategy which is a lot of fun to watch, and is often very exciting to trade. The high frequency of trades and the high accuracy rate of these systems make for an entertaining trade session. However it must be understood and accepted by all investors, that with all scalping strategies, inevitable large losses will occur from time to time resulting in large dips in equity.

Those who understand this concept, and let their accounts trade through the peaks and valleys are often rewarded with excellent long-term performance. It is however very important to understand the underlying strategy and how draw-down is encountered and handled.

In the company’s opinion, successful scalping strategies need to employ both fundamentals and technical’s, they must establish high-probability trading times, they must be able to filter the good trades from the poor ones with various technical indicators, and they must have a strong exit strategy for “runaway trades” which may end up in a stop loss.

The good news in relation to the inevitable draw downs with scalpers is that their accuracy rate is usually excellent! So draw-downs are made back very quickly, sometimes even in the same trading session. For those who are participating in any of the scalping FX systems, you will see that over a given period of time, these systems have the uncanny ability to predict rapid moves in the markets with very high accuracy, while always protecting the downside and quickly recovering from the inevitable losses which occur from time to time with these powerful strategies.

A WORD ABOUT THE NFA AND CFTC

While the company believes that increased regulation does bring credibility to the spot foreign exchange asset class, simply put, they feel that both the NFA and CFTC’s imposing onerous regulations are counterproductive in the marketplace.  The saga first started with their anti-hedging legislation. Followed shortly by their FIFO (first in, first out) rule. Now their proposed rules call for restricting leverage to a maximum of 10-to-1, even for the most widely traded currency pairs. It’s quite clear to us that these regulatory agencies are trying to regulate a market, which is a true global interbank market, and prevent traders from being profitable in their true potential in their trading endeavors.

The company has thought good and hard about becoming a registered CTA with the NFA/CFTC, but due to the direction the US based industry is heading towards in conjunction with the current market climate and focuses on removing themselves from their purview altogether when possible. They attempt to work with FCMs in Switzerland/UK/Panama/Germany when at all possible, and prefer to work with clients who are non-resident USA persons or those who conduct their business through non-USA based corporate entities, trusts and foundations.  However, USA persons & entities can be accommodated through the European subsidiary of an approved USA brokerage.

In addition to the existing changes in trading conditions in the USA, these proposed new rules by the U.S. government agencies responsible for the regulation of retail foreign exchange, if enacted in their current form, would have an enormous impact on the U.S. forex industry. In addition to this, the amount of red tape, restriction, and limitations imposed by NFA memberships have simply deterred us from becoming members or participants let alone becoming a CTA. There may be turbulent times ahead for traders trading in the spot forex market. The company states “we are positioning ourselves as advantageously as possible to ensure the success and future growth of our endeavors.”

Performance and Audits

By request from prospective clients, the company has hired the services of a USA based CPA to perform an independent 3rd party audit and verification/analysis on our trade account’s performance. Our first audit was conducted in April 2010 for Q1 2010 (January 1st – March 31st) and will follow suit for every quarter from here on forward. The audit will comply with the standards set forth by the American Institute of Certified Public Accountants.

Please review the company performance table for a month-by-month performance comparison since inception.

The Performance Table has also been updated with the following statistics of interest (note, the ‘Private’ Trading Program’s historic performance will be compiled to the performance table during July. For now we have only included the month of June)

MONTH	FOREX # 1	FOREX # 2	FOREX # 3	PRIVATE	AVERAGE
Dec-08	32.30%	72.73%			52.52%
Jan-09	18.70%	-4.19%			7.26%
Feb-09	27.50%	160.30%			93.90%
Mar-09	29.50%	21.97%			25.74%
Apr-09	-34.40%	61.33%			13.47%
May-09	53.30%	33.35%	3.52%		30.06%
Jun-09	23.60%	25.77%	4.69%		18.02%
Jul-09	10.10%	20.69%	4.13%		11.64%
Aug-09	26.92%	10.77%	4.86%		14.18%
Sep-09	-0.32%	5.44%	5.79%		3.64%
Oct-09	-4.26%	20.36%	6.55%		7.55%
Nov-09	10.76%	-20.98%	30.98%		6.92%
Dec-09	9.37%	15.94%	10.39%		11.90%
Jan-10	33.63%	27.91%	16.02%
Feb-10	15.31%	14.93%	22.63%		17.62%
Mar-10	15.43%	-5.08%	3.23%		4.53%
Apr-10	-8.11%	-9.43%	-0.05%		-5.86%
May-10	0.70%	-7.66%	27.30%		6.78%
Jun-10	20.86%	10.56%	4.83%	9.68%	11.48%
Average Monthly (In Just 18 Months)	14.78%	23.93%	10.35%	9.68%	14.69%
Total Comp’d Return (In Just 18 Months)	932.22%	2323.86%	277.82%	9.68%	885.90%

RISK DISCLOSURE: Alternative Investments carry a high degree of risk, and may not be suitable for all investors. Before deciding to participate in Alternative Investments you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Alternative Investments, and seek advice from an independent financial advisor if you have any doubts or concerns.

For additional information, please contact: John Geering  Snook, CA Lic. Registered Investment Advisor – USA – (619) 347-2294 – Skype: johngeering1 – jg@PacificAlternativeInvestments.com

Check out Tonga! And let them know that Glen sent you.

A Group of Savvy Canadians Have ‘Discovered’ the Vava’u Island Group, Kingdom of Tonga, Paradise in the South Pacific !

They are acquiring affordable ocean-view building-sites in ‘Cocomo Village’ on private Hunga Island, where an eco-village of 21st Century ‘Pioneers’ see the need to escape from western countries, for any number of economic, political or personal reasons. In the case of most of the Canadians, they wish to spend winters in ‘shorts & T-shirts’ rather than freezing their buns off during long Canadian winters !

IMAGINE…………dining on your veranda, overlooking the beautiful South Pacific Ocean, having freshly-squeezed orange juice & fresh eggs from local island chickens for breakfast, then deciding whether to go for a sail, hike the island, swim or snorkel, do some fishing for dinner or take a gamefishing boat from the Lodge on Hunga Island for some deep-sea fishing off the island or just stroll down to one of the lagoon beaches with a book in hand……….or take your boat to a nearby boutique island resort for lunch or dinner……..perhaps an overnight to celebrate a special occasion !

The Noble of Hunga Island, a member of the Tongan Parliament, has generously opened up some ocean-front acreage for international individuals to acquire building-sites in what is becoming ‘Cocomo Village’, sharing this 1,000 acre island, with a fully-protect 500+ acre lagoon, where world-cruising yachts gather; Hunga island has been his family’s heritage for over 800 years andaside from a small fishing lodge on the island, this is the first time land is available for others to join with the friendly Tongan villagers in sharing this island in the Paradise of the South Pacific.

This opportunity can be yours for much less money than the overly-promoted Mexican, Central & So. American real estate ‘deals’ one has seen the past 25 years ! The Kingdom of Tonga, the only benevalent, Constitutional Monarchy in the So. Pacific, is a “refreshing new direction” for western country individuals to retire, have a “safe-haven” or a 2nd home “away from the maddening crowds”, yet enjoy modern conveniences including Internet, without having to endure the crowds at expensive ‘Waikiki Beaches’ around the world !

Join us now in becoming part of this international Expat ‘Cocomo Village’, being spearheaded by some savvy, forward-thinking Canadians (Americans too of course and Aussies, Kiwis and Europeans) in this very affordable unspoiled Paradise of the South Pacific; we’d love to welcome you as a neighbor and friend as part of ‘Cocomo Village’ on beautiful Hunga Island, Vava’u, Tonga ! http://www.CocomoVillage.com

Questions: jg@TongaIslandProperties.com & http://www.TongaIslandProperties.com .

There is this long standing belief that only the rich can benefit from these things, and the “average” person does not need them.

But, when I talk to people who do have offshore accounts, or implement other privacy strategies, there is one thing that seems to stand out. Or at least is a very regular occurance.

I was talking to my friend Grant Hall, who is the author of “Privacy Crisis” and one of the top experts on privacy in the US. And, he has noticed the same trend. More about that in a moment …

Let me ask you a question. Are you rich? Here is another one that is even more important. Can you afford to lose what you already have?

Statistics prove 2 things. The most common answer to the first question is no. And for the purposes of this conversation, it is irrelevent. The thing is, the answer to the second question is also almost always no.

So chances are very good, that you cannot afford to lose all of the assets you already have. And even if you could, I am sure you would rather not.

So, back to the actually disturbing trend I mentioned earlier. The most common thread we seem to see with people who open offshore bank accounts or implement other privacy strategies -

Disaster

It’s overwhelming the number of people who have had their identities stolen, been involved in painful lawsuits or divorces, been victims of stalkers and more. And after it happens, they finally go to protect themselves.

How much better would it be for you, if you protected yourself before disaster strikes?

Think of it this way, the chances of being hit with identity theft, is probably higher than your house burning down. I don’t have the actual stats in front of me, but the chance of identity theft is 1 in 10, and I don’t see 1 in 10 houses burning down. But, you probably have fire insurance.

Now, is your chance to subscribe to Freedom Offshore Magazine for FREE, to learn how to protect yourself now. If you wait until you need it, trust me, it is going to be too late. And statistics show that at some point in your life, you very well might need it.

And check out Grant’s book, Privacy Crisis. You will be glad you did.

Funny Video, but a VERY UNFUNNY SUBJECT

Good friends, good food, good rum and good cigars.  That’s what a number of us enjoyed tonight at Pangea restaurant, downtown, Panama city Panama.  If you have never been to Pangea, it should definitely be on your list of must hit restaurants when you are in Panama.

The great food and fun atmosphere have made it a favorite with locals and expats alike.  The prices are reasonable, and the food is always good.  

But, because of its off the beaten path location, don’t expect your taxi driver to know where it is.  Just tell him Via Veneto.  Drive right past the casino 2 blocks then turn right.  The restaurant is on the right. 

But do it in Spanish of course.

I do love Pangea, but this isn’t a restaurant review.  Tonight, my interest was in one thing.  The patio at the back, where a group of friends had gathered for the weekly cigar aficionado meeting.

What is the cigar aficionado meeting?  Basically just a bunch of great people sitting around telling stories, laughing and having a great time.  And smoking cigars of course.  Not to mention eating great food and drinking Abuelo, a great local rum.

But its none of those things, that make the aficionado meeting so great.  Its the camaraderie.  Something about sitting around with guys smoking a wide variety of cigars ranging from $1.99 to $800 is just refreshing.  Especially when none of the guys are snobs, even when they could be.  And, it’s not a place where political correctness rules, which is another awesome perk.

In Canada or the US, because of all the non-smoking laws, you couldn’t even hold a meeting like this.  Unless you wanted to hide out in a back alley somewhere I guess.

Made up of business men, doctors, lawyers, retirees and more, this group meets at various locations around Panama City ranging from local restaurants to the exclusive Union Club.  Its membership is by invite only, but everyone is so friendly that any friend of a member is welcomed with open arms.  There is no snobby vetting process; you just need someone who has been there before to invite you.  And, while it is mostly males, women do show up, and are gladly invited into the mix.

There is really only one purpose behind the meeting.  To have a good time.  And, as usual, everyone tonight did.

By the way, Freedom Offshore Magazine is going to be adding a regular column with cigar information and news.  Be sure to secure your FREE lifetime subscription by registering to the right.  Or, learn more about the Freedom Offshore Magazine and our exclusive membership by clicking here.  Our free subscriptions and community memberships are not going to last forever.  So secure your spot now.

Some countries are more negatively affected than others in this “meltdown.” Interestingly, those countries least active in international trade, who weren't even wholly dependant upon an internal money system will feel the heat the least. Tonga is such a country to be least effected, but it is not entirely exempt. However, perhaps and uniquely so, its favorite appendage, the favored Vava'u Island Group is exempt from this economic coup.

Vava'u is the popular reef protected island group of Tonga that attracts ex-pats and tourism like none of its other island groups. There are good reasons for that. Vava'u has all of the qualities that qualify it to be designated as truly paradise; blue lagoons, emerald islets fringed with white sand beaches and crystalline azure placid waters. It is located at 18 degrees south latitude for perfect weather and 450 miles east Fiji . Vava'u is a tsunami proof, stable rising island group (not sinking) and it is the home of the Humpback whales who breed and bear their young within these protected island waters. The Vava'u Island Group is also a haven for the many world cruising yachts that navigate the South Pacific islands. Like the whales, they enjoy the safe and serene lake-like waters created by the huge protective reef system that encircles these island jewels. And in these times of economic considerations, Vava'u is cheap to live and at a higher standard than most of us were used to in our homelands. So living in Vava'u, we are not sacrificing anything but traffic, smog, lost freedom and future trouble of incalculable potential.

All of the classic storybook qualities are present in Vava'u. Nature has gone out of her way to create the epitome of a business and residence haven for people, yachts and whales and without the menace of her poisonous creatures, for there are none that can harm you in Vava'u. A child walks through the jungle barefoot with no fear of snakes, poisonous insects, nor even one dangerous critter of trepidation, and the natives are friendly. Hence, it is becoming more popular with ex-pats from around the world and because of Tonga 's easy to qualify residency visa program, virtually everyone seems to qualify.

Now, I know this all sounds too good to be true; and it is. I left out the only menace in Vava'u, which is the same we have anywhere in the world-people-the good, the bad and the ugly. However, with more than good luck, we have only two really bad ones and maybe two runner-ups. Otherwise, out of less than a couple hundred expats, all's well with mostly very kind, gentle, considerate and loving folks, including many families with children of all ages. The invitation for more to join is still out there, but will be one day limited to only those with a vested interest in the place. Securing a position in Tonga now makes sense for any concerned about their future in their old “melting pot” which looks like it may finally be doing just that-melting and going to pot.

These next statements may be a bit premature so I won't go into all of the unpopular reasons why folks should be looking to bail out of their “changing” homelands, but save this article to refer back to when it finally hits home. A few days on the Internet looking up stuff (truth movements) you never thought possible, and you may just experience enough logical doubt about “hanging in there” and buy some insurance to secure a safe haven outpost in paradise. Just because we are born somewhere doesn't mean we have to live there, especially when it is caving in. Even Bre'r Rabbit got out of the briar patch.

Just in case there is any truth to what you find on the Internet, it has all been thought out here in Vava'u and in the best interests of those who might want to make sure they are fully covered. For those who aren't in that group of concerned citizens, there is nothing wrong with having a lovely retirement home in paradise, even if the “meltdown” isn't really happening. In any event, it would be wise to live where you have “more food than people” and your own healthy garden, plus where the community has an adequate shared food master garden and basically endless supply of unadulterated nutrition, to include fresh fish, etc. Vava'u is that place and there is such a community in paradise being set up now on a large island close to the mainland island, where supplies of all things are abundant. Lots there are anticipated to be selling on the highland and over the water for under $5000 USD each. In Tonga , the term “sell” when referring to land is not accurate since land here cannot be sold, only leased. 99-years, renewable, is what this island community will see for terms for these lots.

So, what about houses? Of course, you may build any mansion you want from any materials, and all are available in town or they can be imported. In Vava'u, there is a little more freedom with regard to construction permitted and one can take advantage of the non-permanent exemptions where some rather wonderful prefab or “Yurts” are welcome. Check out yurts ( http://www.yurts.com ) for an alternate kind of tropical home-quite interesting and from between $5,000 and $10,000 USD. http://www.versatile.co.nz/index.cfm/1,70,html/Homes has homes from under $35,000 USD. So, there are many options for building a home, right down to the native style fales that have been used for thousands of years, and still used today. Life is more interesting when you get out of the conventional box, literally.

All things considered, Vava'u may have the answer for those folks who aren't ready right now to make a significant financial decision, but wish to secure a lot cheap over the water with a grand view of the island group and for speculation or for their own future use. Some who heard about this through the grapevine are opting for several lots. More on this project when the final papers are approved and when they can move forward with their offer.

Meanwhile, back in the main Vava'u town of Neiafu , shopping centers are opening, not closing. A new quaint little center was just finished and rented out the day it opened, save for one restaurant space with a splendid view of the harbour below. You wouldn't know this restaurant space was available if you stopped by, for the place is packed on its dining veranda. A popular restaurant has opened next to

 it, but was intended to be a small cafe operation. Business is so good at the cafe, customers spill over into the restaurant veranda and tables had to be set up there to accommodate the cafe. A real chef from Germany , with a personality from some movie I can't place, came in and set up shop next to the vacant one. He cooks up a terrific meal and cheap, so cheap and so good that some of the competition reported him for unfair competition-just to give you an idea of how pioneer minded some of these folks still are. His comment to it all is; “I weel just lowered my priceses ifs they complaint again.” We all hope he gets another complaint for this brawny personality will do it. Someone might just rent that place next door and charge a small fee to eat there for free. Then serve alcohol since our German, oddly, doesn't even sell beer. (a hint for some business minded player)

The point being, business is booming, generally, and getting better as more visitors and yachts are coming to Vava'u to spend their money. Whale watching and swimming is a big draw to Vava'u, one of the two places in the world you can actually swim with the whales. Of course, diving, snorkeling and just plain swimming off the many beaches is all part of the attraction, especially when a small boat can readily traverse the inter-island waterways between those beautiful and largely uninhabited islands. The islands beckon a little exploration as you near them, some with ancient but friendly native villages.

Disney could not have set up a better theme park. On your own, you can rent a boat, head out for a day of adventure and stop by a real native village that, without electric or any modern conveniences, still cooking with fire, people live a rather simple, safe and secure and as they did hundreds of years ago before money and Bwana. The natives are friendly, as Captain Cook dubbed these islands, and as you walk through the village they will send their children out to invite you into their homes, some for a mutual curiosity interest and some to sell hand made tapa cloth made right there in the village. To watch them make tapa is mind-boggling. Spend a day on one of these islands and you will come back with an education in herbal medicine, food cures, philosophy and a new perspective on where you came from and what was the purpose.

Currently available on a private island – ocean-view lots at introductory prices of just US$3,850. each (to increase summer ’10); please visit http://www.TongaIslandProperties.com  and question to: jg@TongaIslandProperties.com

Successful privacy advocates recognize the value of banking privacy for both business property and personal holdings.

Government seizures of business and personal property occur frequently.  Currency devaluations and government debt seem to overshadow the rights to privacy and constitutional laws, and may make assets and bank accounts more vulnerable to government agency seizures.

NORFED assets were seized after years of operations and the “Soviet-Style Attack on NORFED“[1] demonstrates how business assets are seized and questions and answers about the constitutionality of the seizure are delayed unless and until the case gets to court. Once a seizure occurs, huge legal fees may be required, and the defendant will have win the case to reclaim the property.

U.S. Government agencies are seemingly able to convince judges to sign issue warrants to support their decisions to seize property, and one such judge, Dennis L. Howell, U.S. Magistrate judge, Asheville, North Carolina, issued the warrant in case 1:07-mj-100119-DLH in the aforementioned NORFED seizure case.[2]

Offshore bank account advantages

Removing assets from “business unfriendly” jurisdictions-especially the “seizure happy,” U.S.A. seems like a prudent move for businesses and high net worth individuals, and others who can benefit from offshore banking privacy in the opinion of this author.

Furthermore, when business assets and personal funds are held in an offshore bank account, the agency, company, or individual who attempts to seize these assets will be asked to demonstrate the reason for the seizure, and this reason must be congruent with the laws of the jurisdiction where assets are kept, and in many jurisdictions having “true bank secrecy,” only criminal cases warrant the seizure of assets. And the assets have to be discovered prior to such an action being brought forth, and this discovery may be indeed difficult when banking privacy is combined with high-level financial privacy principles.

Preparation and references

Privacy seekers who want offshore banking privacy will have no difficulty finding companies offering these financial privacy services. Of paramount importance is the selection of a business that will deliver the goods once a pre-payment is made for the services. The offshore bank account “agent” for the offshore bank will facilitate the transaction and may be as cost effective as the “do it yourself” offshore bank account opening option. One company we believe to be reputable in the field of offshore banking services is Freedom Offshore and their offshore banking services are offered through this website: www.FreedomOffshoreNow.com .

Offshore banks will require in depth information about their prospective banking client. Those who desire offshore banking privacy may be asked to provide these specifics and documents prior to their bank account being approved by the institution:

1. Name, address, business and personal telephone numbers, e-mail address
2. Bank or brokerage account information with account average balances and a contact person at the institution
3. Utility bills
4. Professional references who vouch for the character of the prospective banking client
5. Copies of Government issued identification duly notarized
6. Other personal or business information as per the institution   

Offshore bank account opening procedures may take some time to complete as all reputable banks will want to verify new client information prior to opening an account.

An agent providing “introductions” and other services to the client desiring offshore bank secrecy may expedite this process and be a worthwhile resource for consideration.

                                            References/Websites

Jacob G. Hornberger, The Soviet-Style Attack on NORFED, The Future of Freedom Foundation, November 7, 2007, http://www.libertydollar.org/commentary/pdfs/1196746715.pdf

Hall, Grant, The Money Privacy Crisis;