Eight Easy Ways to Say Goodbye to the Buck
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Don’t know the first thing about trading currencies? No problem. You can still invest outside of the falling dollar - even with just a normal stock brokerage account. Let’s look at some great ways you can get in on the foreign currency markets, and actually profit from the dropping dollar.
So Easy You Could Start Investing Tomorrow
The investing public is already in the know when it comes to exchange traded funds (ETFs). Your average Main Street investor can tell you ETFs cover certain market sectors or styles of investing. Many even realize there are ETFs that cover the international markets.
However, it’s not always publicized that you can easily use these products as pure currency plays. These days, you can buy exchange traded funds that are pure currency plays on all the major world currencies.
Currently you can buy eight major currency ETFs. These include the euro (FXE), British pound (FXB), Mexican peso (FXM), Swedish krona (FXS), Australian dollar (FXA), Canadian dollar (FXC), Japanese yen (FXY) and Swiss franc (FXF). These eight currencies have interest rates ranging from 7.50% on the Mexican Peso to a low of 0.50% on the Japanese Yen. The symbols for most of them are very easy to remember too.
You can invest in these revolutionary products with any standard brokerage account the same way you would buy shares of IBM or Google. For example, you could call up Charles Schwab, E*Trade, Ameritrade, Merrill Lynch, etc., and buy a currency ETF tomorrow.
Bet on Your Favorite Offshore Country with Their Currency
So if you think any one of these countries has a bright economic future and will go up over time, you can trade that opinion.
For instance, for a long time now Jack Crooks and I both have been bullish on the Australian dollar due to its high growth, high inflation, high interest rates, low unemployment and demand from China. You can see from the chart below that the currency has really taken off and done well.
The Land Down Under Stays On Top!
So if you’re bullish on Australia and think it’s going up, buy a comfortable amount of the Currency Shares Australian Dollar Trust (traded on the NYSE as symbol FXA). It’s that simple.
Any way you slice it, currency investing has never been easier.
SEAN HYMAN, Currency Analyst
EDITOR’S NOTE: These days, there are literally dozens of interesting ways to invest your portfolio outside the dollar - from safe, stable long-term currency plays (that guarantee you never lose a dime) to sexy foreign-exchange trades. Whatever your investment style, our 33 experts will explain exactly how to maximize your retirement fund and diversify your investment portfolio out of the sinking buck this May at our Total Wealth Symposium. Still haven’t reserved your spot at this event? Sign up before Monday, April 21st and save an extra US$150 off the attendance fee. Click here.
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Tags: , Ameritrade, Australian Dollar, Charles Schwab, ETFs, FXA, FXB, FXC, Fxe, FXF, FXM, FXS, FXY, Google, Jack Crooks, Merrill Lynch, Swiss Franc, yenAbout the Author
Sean Hyman is a regular contributor to The Offshore A-Letter, My Two Cents and The Sovereign Individual, and Today’s Financial News. He has close to 15 years experience as a stockbroker, manager, and trader. In addition to his role as Money Trader editor, Sean acts as Currency Director for the Sovereign Society.
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.