Jump to content


Photo
- - - - -

Three Currencies ready for "revaluation"


  • This topic is locked This topic is locked
12 replies to this topic

#1 jbbdolphins

jbbdolphins

    Member

  • Members
  • 755 posts
  • LocationGainesville

Posted 15 August 2012 - 02:47 PM

I am not sure where I should put this topic, but I came across this article and thought I would share it...monitors, please put this in the appropriate forum (thank you). I am not computer literate, so I just copied as is... :rolleyes: P.S. I am not a guru!!!


Sat Aug 11, 2012 6:11 am (PDT) . Posted by: "EVENTS UPDATES" muradalibana

THREE CURRENCIES READY FOR A HUGE REVALUATION
Â
by Karim Rahemtulla
Senior Correspondent & Emerging Markets Specialist, Wall Street Daily
Â
The U.S. dollar and euro are doomed.
Â
Why? Because in addition to being in slow-growth economies, saddled with debilitating debts, they’re the victims of an enormous increase in money supply.
Â
Result? Serious inflation and devaluation for both currencies in the coming years.
Â
Even if the United States doesn’t add to its already bloated debt, the interest on it – coupled with massive money printing – virtually guarantees higher prices. The same goes for Europe, as the region is printing money out of thin air to bail out its ailing countries and banks. However, the dollar and euro’s pain could easily be your gain.
Â
You see, the situation is rapidly creating a new currency world order.
Specifically, three currencies are poised for a massive upward revaluation…
Â
The Three “Super Currencies� of Tomorrow
Â
There’s a trio of currencies that you must include in your portfolio today.
Â
Backed by solid fundamentals in countries that rely on growth, not artificial monetary stimulation, these three currencies operate on an entirely different playing field to the dollar and euro.
Â
And they’re set to undergo huge revaluations in the coming years. Let me show you why. First up…
Â
~ Currency #1 – Chinese Yuan:
Â
As the dollar and euro decline, the Chinese are busy plowing the yuan into assets that increase in value. Things like mines, factories, other currencies and natural resources.
Â
At current levels, the yuan is a bargain. Of course, the Chinese government deliberately sets the exchange rate artificially low – rather than allowing it to float freely on world markets – in order to profit from Chinese goods and services.
Â
With the world balking at this arrangement, the Chinese will have to revalue the yuan in a big way over coming years. Why? Two reasons…
Â
·        The Chinese aren’t just goods producers these days… they’re
big consumers, too. This means reduced dollar reserves and more yuan will be invested abroad.
Â
·        The Chinese will be forced to revalue the yuan more
frequently and by greater amounts – something the country was unable to do as it was busy accumulating dollars.
Â
As a tandem, these two catalysts will force the value of the yuan higher in the years ahead.
Â
Where to Invest: The FOREX market is fraught with volatility and requires a special currency-trading account to facilitate trades. So in lieu of that, take advantage through the WisdomTree Chinese Yuan ETF (NYSE: CYB), which trades like a stock. Hold for the long term – two to five years – and look for 20% upside against the U.S. dollar in five years.
Â
~ Currency #2 – Indian Rupee:
Â
Having dropped by more than 20% against the dollar over the past couple of years, the rupee is an absolute steal right now.
Â
The Indian Central Bank controls the rupee closely. And in an effort to combat the financial crisis and make Indian goods and services more competitive, it’s allowed the currency to depreciate.
Â
Result? An artificially weak rupee that will appreciate, due to the trend in global growth and money flow.
Â
With Indian GDP growth set to outstrip all Western economies in the years ahead, the country will have to raise interest rates to quell inflation.
Â
In the past, this wasn’t an issue, since India wasn’t a global player when it came to importing goods and services. It was a closed, insulated economy, where the majority of the population bought locally.
Â
But with the Indian middle class approaching some 400 million people, the country is beginning to import more goods. That will lead to inflation, which will force the central bank to tighten monetary policy.
Â
Where to Invest: You can buy the Indian rupee through the WisdomTree Indian Rupee ETF(NYSE: ICN). Again, plan to hold for two to five years. I project 25% growth against the U.S. dollar in five years.
Â
Finally, another currency that stands to gain from the demise of the dollar and euro…
Â
~ Currency #3 – Canadian Dollar:
Â
The Canadian dollar has a bright future.
Â
For starters, Canada is rich in natural resources like oil, timber and gold. As the prospects for global growth pick up, all three are in huge demand from developed and developing economies alike – a trend that will remain for years.
Â
Canada also has its fiscal house in good order. Its AAA credit rating is secure, as the country quickly tackled its debt issues in the early part of this century. As a result, the Canadian dollar has almost doubled against its U.S. counterpart in the past decade.
Â
In addition, Canada didn’t have to bail out its banks or financial system because of lax lending practices. Quite the opposite, in fact.
Thanks to their financial strength, Canadian banks are now expanding into the United States in record numbers.
Â
In short, Canada has a lot going for it. It supplies emerging markets… it has a strong and fiscally responsible financial system and government… it will benefit from a U.S. economic recovery… and it maintains a transparent and trusted economy.
Â
Where to Invest: Add the “loonie� to your portfolio through the CurrencyShares Canadian Dollar Trust (NYSE: FXC). Like the Chinese yuan and Indian rupee, this is a long-term holding, with a further 25% gain against the U.S. dollar in five years.
Â
Bottom line: Remember that we’re talking currencies here, so a move of 10% to 15% would be huge. But these three will represent the new world order in the currency market over the coming years – and the gains will reflect that.
Â
The best way to buy the yuan, rupee and Canadian dollar is to make regular investments over time. Don’t just pile in at once. Average your cost over the next few months as the U.S. economy strengthens.
This strategy will allow you to buy the currencies at reasonable levels.
Â
Good investing,
Â

Edited by jbbdolphins, 15 August 2012 - 02:50 PM.

  • 4

#2 umbertino

umbertino

    Senior Member

  • Members
  • 29,282 posts


Posted 15 August 2012 - 03:17 PM

Maybe we should adopt a new Currency based on the 3 main strongest ( on a large scale) economies right now...
A mix of China's Yuan,India's Rupee and Brazil's Real.

If the Euro is going to get dumped.. We're phucked ( Italy and Southern Europe especially and also a tad bit Northern Europe).

Edited by umbertino, 15 August 2012 - 03:20 PM.

  • 1

#3 wpsmit

wpsmit

    wpsmit

  • Platinum VIP
  • 2,571 posts
  • LocationGeorgia, usa


Posted 15 August 2012 - 03:21 PM

Maybe we should adopt a new Currency based on the 3 main strongest ( on a large scale) economies right now...
A mix of China's Yuan,India's Rupee and Brazil's Real.


yep, call it the ReYuRupe
  • 1

RV,RV,RV! SOMETIME IN MY LIFETIME


#4 R Veyron

R Veyron

    Senior Member

  • Members
  • 1,382 posts
  • LocationAt Large

Posted 15 August 2012 - 03:25 PM

Interesting and sobering article. It does make sense though..
  • 0

#5 Biker

Biker

    biker1641

  • Members
  • 1,603 posts
  • LocationUS


Posted 15 August 2012 - 03:25 PM

Imagine that not a word of the Dinar, well i guess cause there such a poor country and they just got out of a terrible war that destroyed there country right ?. Is it not funny how you never hear anything about Iraq on the news i mean come on we just blue the hell out of a country and lost 3000 service men and women not many yrs ago placed a government in control and we hear nothing but now and again some one blows up a car and kills 13 people. Why no news , could it be because they don't want you to no of Iraq and what there doing. Dinar Ha out of sight out of mind. :blink:
  • 3

#6 umbertino

umbertino

    Senior Member

  • Members
  • 29,282 posts


Posted 15 August 2012 - 03:26 PM

yep, call it the ReYuRupe

lol...

I could always try and approach the Central Bank of Italy Governor ( until last year or 2 years ago it was Mario Draghi now Head of the ECB) and propose him to start using the IQD...Smile....
  • 0

#7 boomer113189

boomer113189

    Senior Member

  • Banned
  • 1,138 posts
  • LocationMidwest

Posted 15 August 2012 - 03:32 PM

is this true? if so that would be pretty weird
  • 0

#8 SocalDinar

SocalDinar

    reality is overrated

  • Members
  • 3,935 posts


Posted 15 August 2012 - 03:35 PM

Thanks JBB.
Here is the link http://www.wallstree...ge-revaluation/
  • 0

#9 sq2

sq2

    Advanced Member

  • Members
  • PipPipPip
  • 39 posts
  • LocationTexas hill country

Posted 15 August 2012 - 03:37 PM

The advertising for that article also stated Iraq Dinar is going to revalue(imminately), but they don,t recommend it!
  • 0

#10 jeepguy

jeepguy

    Senior Member

  • Members
  • 4,051 posts
  • Locationcinncy,louisvile,lexing?

Posted 15 August 2012 - 04:27 PM

hahahha i am wondering if they are in the process of, mis direction, of which currency might in fact be ready ?? the indian rupe ??? maybe we just had a deal with the coal co. of kentucky too sell 250 million tons of coal for 25 years that is 250 million tons per one year < ---- so this might just be a pointer too the india currency right at this time the rupee is 1 u.s. dollar too 55.25 rupes ,,, but for the other currency they talked about i think they are above the dolar at this time ---- will check ,,, but they might be having a buying spree them selves on dinar :lol: { i guess they didn`t mention ding -dong :o }

Edited by jeepguy, 15 August 2012 - 04:28 PM.

  • 0

#11 jbbdolphins

jbbdolphins

    Member

  • Members
  • 755 posts
  • LocationGainesville

Posted 15 August 2012 - 08:02 PM

Thanks JBB.
Here is the link http://www.wallstree...ge-revaluation/



Thanks for the link...I really must learn how to use my computer!!! :lol: :lol: :lol:
  • 0

#12 storm1

storm1

    Senior Member

  • Members
  • 493 posts

Posted 19 August 2012 - 07:56 AM

Where to Invest: The FOREX market is fraught with volatility and requires a special currency-trading account to facilitate trades. So in lieu of that, take advantage through the WisdomTree Chinese Yuan ETF (NYSE: CYB), which trades like a stock. Hold for the long term – two to five years – and look for 20% upside against the U.S. dollar in five years.


Please dont follow this guys advice on "long term" investing in ETF's and ETF will always erode to zero by design ETF is only to be used as a daily or short term trading tool.
and if you doubt me, do some research on etf's and pull up some etf charts
  • 0

#13 doctor robbins

doctor robbins

    Senior Member

  • Members
  • 764 posts

Posted 19 August 2012 - 09:04 AM

Bottom line: Remember that we're talking currencies here, so a move of 10% to 15% would be huge.


That says a lot.
  • 2




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

  • Privacy Policy