Monday, December 01st, 2008

Hot Topics : $8 Trillion in Bailouts | Biotech Stock Bargains | The Greater Depression | Thanksgiving Turkeys

Bear Market Rally or Market Bottom?

Apr 2nd, 2008 | By Erika Nolan | Category: US Dollar & Forex Trading

Asian markets rallied big overnight in response to the U.S. market’s big day yesterday. Hong Kong was up 3% and the Nikkei was over 4%. So far, European stocks are following suit, but not as enthusiastically - with London, Paris and Frankfurt up less than 1%.Are we out of the woods? Is the worst behind us?

Our investment editors are fine tuning their crystal balls as we speak. In the meantime, The Sovereign Society consensus remains that hard assets and diversification outside the U.S. dollar and domestic financial markets, continue to make sense for the long term.

And when putting new money to work in the financial markets, it’s important to remember that - at all times - you have far more choices than most investors tend to imagine.

For instance, you don’t have to watch the value of your savings disappear.

Four Simple Cures for the Sinking Dollar

The U.S. dollar is in the worst bear market in its inglorious history. Yet you can own other currencies in the spot currency markets with account minimums of as little as a few hundred dollars. You can put your cash in the pound, euro, Swiss franc, Japanese yen, Canadian, Australian or New Zealand dollars without paying commissions or large spreads. You can collect more interest than you would in U.S. dollars at the same time.

You can also own FDIC-insured foreign currency CD’s, foreign currency funds that trade on stock exchanges, and forex options that you can trade from your own stock brokerage account. These are four simple, dollar-protection vehicles that are available to any investor - without needing a special account or high minimum net worth.

You don’t have to chain your equity portfolio to the U.S. market.

Even after yesterday’s rally, the Dow is down nearly 10% so far this year. Yet markets like Canada and Mexico are up. In fact over the last 10 years, the U.S. has not been a top-10 performing stock market once! If the biggest money is to be made where the greatest growth is, you must look to overseas markets to tap into that growth - and to find markets that offer value when the U.S. is overvalued.

You don’t always have to go long the market, especially when it’s overvalued.

How to Avoid an Overvalued Stock Market

Today, any retail investor can short the broad market - as well as some sectors of the market - with inverse ETFs. A few of these (in case you’re willing to take on a bit more risk to back up your very bearish sentiments) even allow you to short the broad market and sectors with leverage so that if the market falls 10%, you could stand to gain 20%.

You don’t have to let your portfolio get battered by market volatility without taking a few shots yourself.

The right types of equity options can pay well in volatile markets like these. Selling puts on stocks you’d like to own at a lower price can generate income for you now and possibly hand you the stock at a discount to the current price.

You don’t have to be overweighted in stocks during a stock bear market.

It is now easier than ever before to own commodities through ETFs - from gold and silver to oil and gas and now even agricultural commodities. This can offer a very low cost way to diversify your portfolio into hard assets without having to open a separate commodities account.

Don’t Place All Your Trust in CNBC

You don’t have to limit your financial information intake to the nightly news and business section of the paper.

You can add to it the views of cantankerous hard-money kooks; debt-leery, scaredy-cat economists; and curmudgeonly deep-value investors - like you’ll find here in the pages of the A-Letter. And perhaps, if we’re doing our job well, we might just help protect your assets in times of crisis and position yourself for significant profits as well.

That’s the business we’ve been trying to build at The Sovereign Society these past 10 years. Through the tech boom and bust, the housing euphoria and hysteria, the age of financial innovation and devastation, we’ve tried to keep a steady eye on the things we think matter.

We think a good balance sheet matters - for people, companies and nations. And we get worried about economies and markets when they become bloated with debt.

We think you should spend your money wisely: Buy shares in companies according to their earnings and earnings prospects, rather than the rumor mill.

We think the best opportunities don’t have borders. Invest in economies that are opening up their markets and becoming more competitive - while they’re still selling at reasonable values. It’s a great way to diversify your portfolio and capture some of the best growth opportunities in the world.

We think a promissory note backed by a vague promise is not a very secure store of value. So we think it is wise to exchange some of those scraps of paper for hard assets that may have a more enduring value.

We also think you have a right to financial privacy and to diversify your assets geographically as well as across asset classes and financial markets. So we try to introduce you to some of the best banking centers and financial institutions around the word.

Your Choice to Prosper

How much of what we offer is right for you? Well, that’s up to you. It’s your choice. That’s the whole point. Through our flagship publication, The Sovereign Individual, as well as through our other products and services - from Commodity Trend Alert to Forbidden Knowledge - we try to bring you what we think may be the best options in the world of global investments and offshore asset protection.

Which bits and pieces you decide to put into action is completely up to you - the real Sovereign Individual. For our part, we’ll commit to doing everything we can so that you consider us among your most able and trustworthy advisors.

In Wealth & Prosperity,
ERIKA NOLAN, Executive Director

P.S. Foreign equities from Hong Kong. Silver plays from the Sierra Nevada. AAA foreign bonds that protect you from the dropping dollar. Possibly the first bullish options on the financial sector. The few commodities worth grabbing at these levels. Special IRA investments that guarantee your principle, no matter what. You can find out how to buy all these portfolio-beating plays - safely - by joining us for our annual Total Wealth Symposium this May. However, seats are already filling up, so please reserve your spot today before we sell out.


AdvertisementIt's Official: We're In A Bear Market -- But The Next Big Profit Wave Is Taking Place RIGHT NOW!

A small group of ordinary individuals have discovered profits in a highly focused sub-niche of the currency market - that is literally driven by political and monetary uncertainty.

The following report outlines the exact details of how 487 BETA-testers had the opportunity to collect, on average, an extra $5,970 every 30 days following a simple 3-step formula.



Tags: , , , , , , ,

By Erika Nolan

Related Articles



About the Author

Erika Nolan was recruited in 1998 as the Executive Director for The Sovereign Society, an offshore, asset protection and international finance organization. She has brought with her an extensive knowledge of marketing and operational expertise, which has offered a high record of success.

See All Posts by This Author



The Offshore A-Letter specializes is an elite global investment opportunities, asset protection strategies, tax management solutions, second citizenship and residency programs and offshore structures.

See All Posts from This Publication