In This Issue:
* COMMENT: The Bear Will Exit

* OFFSHORE: Bermuda Income Tax? Cayman-EU Ties? BVI No Income Tax. Irish Tax Collectors Chase Dead. Swiss Insurance Down. Mauritius Denies. US Calls Swiss-Linked Bank Terrorist; Swiss Found No Proof.

* WEALTH: EU Concerns. Wither the US Economy? UK Tax Treaties. Canadian Doctor Investigated for Cayman Cash.

* PRIVACY: Federal Crimes Doubled. Paul on Snitches. Privacy Factor. Politics & Gambling; How Net Betting Almost Became Terrorism.
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Our mid-week guest commentator is ERIC ROSEMAN, Sovereign Society Council of Experts member and a leading Canada-based offshore investment advisor.
Bob Bauman, A-Letter Editor

* COMMENT: The Bear Will Exit

Dear A-Letter Reader:
I'm often asked: 'What on earth can you be bullish about in today's investment climate?'

Bull or bear, serious investors always want to know what's the next big thing worth buying. My answer: I'm bullish on anything that is cheap.

During the months of this bear market, just about everything under the sun has been trashed. Even usually safe global indexes are down 6% to 10%. Value stocks, which have led the market since early 2000, also have formed a topping pattern, with investors mistakenly dumping the good right along with the bad.

Even foreign and emerging markets, far less expensive than Wall Street, are following NYSE south this summer. There's absolutely no where for equity investors to hide safely at the moment.

But lower stock prices always produce bargains - eventually. I'm still finding cheap companies out there and if you're a long-term investor, this is definitely the time to be making selective purchases.

Europe is the place I'm shopping right now. With the Euro finally establishing a solid rally vis-à-vis the US dollar and European stocks trading at a much lower valuation than US shares, this is the time to diversify in the Old World.

And the good news is that sometime over the second half of 2002, global stocks are going to embark on a massive rally. Central banks, with the exception of the United States and Japan, have started to raise interest rates and are now on hold as equities sink and economic growth remains uneven. And I don't think the Federal Reserve will raise interest rates this year, which is a plus for stocks, corporate earnings, real estate and the consumer.

But on the negative side, that means a lower dollar.

Overall, I'm now focusing on gold stocks, foreign currencies, selected British investment trusts, emerging markets, hedge funds and carefully chosen European blue chip stocks.

Hang on. The bear will go back in his cave soon.

That's the way that it looks from here.
Eric N. Roseman
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COMMENT LINKS:
* Eric Roseman's ENR Asset Management, Montreal, Canada.
LINK: http://www.eas.ca/
E-MAIL: eroseman@qc.aibn.com
* Emerging offshore markets:
LINK: http://www.forbes.com/emergingmarkets/
* Global currencies:
LINK: http://www.forbes.com/currencies/
* Retirement planning info & calculators:
LINK: http://www.forbes.com/retirement/
* Most popular foreign companies for US investors:
LINK: http://www.forbes.com/2002/07/03/companyslide.html
* World Leading Banks, The Economist.
LINK: http://www.economist.com/markets/displayStory.cfm?story_id=1238957

 

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LINK: http://www.agora-inc.com/reports/GMI/WGMIC717/

BERMUDA INCOME TAX RUMORED, DENIED
HAMILTON. The PLP government denies it, but there's evidence that traditional no-tax Bermuda might impose an income tax.
LINKS: Click Here.
http://www.tax-news.com/asp/story/story.asp?storyname=8866

* Meanwhile, Bermuda captive insurance companies are booming.
LINK: Click Here.
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CAYMAN ISLANDS EYE EUROPEAN UNION TIES
GEORGE TOWN, C.I. Will Cayman residents be forced to pay taxes to Great Britain for savings earned in the Cayman Islands?
LINK: (scroll down) http://www.caymannetnews.com/stories.html#Lead1
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BRITISH VIRGIN ISLANDS TO REPEAL INCOME TAX
ROAD TOWN, BVI. the government plans to abolish personal income taxes in the Islands by 2004.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=88692
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IRELAND PURSUES TAX EVADERS DEAD OR ALIVE
DUBLIN. Ansbacher (Caymans) alleged tax evaders will be followed by Irish tax collectors to the grave and perhaps beyond.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=8868
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SWISS INSURANCE COMPANIES HURT IN MARKET SLIDE
ZURICH. Old reliable Swiss insurance companies' shares take a dramatic tumble on the Swiss stock exchange.
LINK: http://www2.swissinfo.org/sen/Swissinfo.html?siteSect=161&sid=1237785
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MAURITIUS DENIES TAX INFORMATION EXCHANGE
PORT LOUIS. Confidential financial information will be used for supervisory purposes only, not taxes, officials claim.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=8871
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U.S. LABELS SWISS LINKED BANK AS TERRORIST
WASHINGTON. Al Taqwa is linked to a company based in Lugano, Switzerland, but as we reported last November, the Swiss see no proof.
LINKS: http://www.foxnews.com/story/0,2933,58400,00.html
http://www.tax-news.com/asp/story/story.asp?storyname=6237

ROLES REVERSED: E.U. CONCERNED ABOUT SOVEREIGNTY
EU claims US corporate reforms would jeopardize EU sovereignty and expose foreign companies to double jeopardy taxation.
LINKS: http://www.euobserver.com/index.phtml?sid=9&aid=7067
Click Here.
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WHERE IS THE U.S. NATIONAL ECONOMY HEADED?
The Economist magazine thinks it knows the answer.
LINK: http://www.economist.com/agenda/displayStory.cfm?story_id=1246260
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BRITISH DOUBLE TAXATION TREATIES PUSHED
LONDON. Outline on UK tax treaty priorities.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=8874
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CANADIAN DOCTOR INVESTIGATED FOR OFFSHORE CASH
SASKATOON, Saskatchewan. Can't pay US$172,600 fine but has US $1.1 million in a Cayman Islands bank account.
LINK: Click Here.

HUGE EXPANSION OF U.S. FEDERAL CRIMES
WASHINGTON. Little noticed provision makes any 'attempt' to break a federal law a separate punishable criminal act.
LINK: http://ap.tbo.com/ap/breaking/MGABDP9ZZ3D.html
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SNITCHING FOR THE GOVERNMENT
US Rep. Paul sees no justification for Americans spying on each other.
LINK: http://www.lewrockwell.com/paul/paul44.html

* Alarm bells ring over proposed US terrorism reporting system.
LINK: Click Here.
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LACK OF PRIVACY FACTOR
Another reasons why wealthy Americans are leaving the US.
LINK: http://www.gurusinc.com/aa/taxecon/privfactor.html
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POLITICS AND GAMBLING
How the definition of terrorism almost included Internet gambling.
LINK: http://www.winneronline.com/articles/july2002/inelson.htm
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