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PROFIT BULLETIN:

Three Currencies Ready for

A HUGE REVALUATION

by Karim Rahemtulla
Director of Energy and Resources

PROFIT BULLETIN:

THREE CURRENCIES READY FOR

A HUGE REVALUATION
BY KARIM RAHEMTULLA, DIRECTOR OF ENERGY & RESOURCES, WALL STREET DAILY

Dear Wall Street Daily Reader,


The U.S. dollar and euro are doomed.
Why? Because in addition to being in slow-growth economies, saddled with debilitating debts,
theyre the victims of an enormous increase in money supply.
Result? Serious inflation and devaluation for both currencies in the coming years.
Even if the United States doesnt 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 euros pain could easily be your gain.
You see, the situation is rapidly creating a new currency world order. Specifically, three
currencies are poised for a massive upward revaluation...

The Three Super Currencies of Tomorrow


Theres a trio of currencies that you must include in your portfolio today.
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.
And theyre set to undergo huge revaluations in the coming years. Let me show you why. First up...

Currency #1 Chinese Yuan:


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.
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

THREE CURRENCIES READY FOR A HUGE REVALUATION

to profit from Chinese goods and services.


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...
The Chinese arent just goods producers these days theyre big consumers, too. This means
reduced dollar reserves and more yuan will be invested abroad.
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.
As a tandem, these two catalysts will force the value of the yuan higher in the years ahead.
Where to Invest: The FOREX market is fraught with volatility and requires a special currencytrading 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.

Currency #2 Indian Rupee:


Having dropped by more than 20% against the dollar over the past five years, the rupee is an
absolute steal right now.
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, its allowed the currency to depreciate.
Result? An artificially weak rupee that will appreciate, due to the trend in global growth and
money flow.
With Indian GDP growth set to outstrip all Western economies in the years ahead, the country

THREE CURRENCIES READY FOR A HUGE REVALUATION

will have to raise interest rates to quell inflation.


In the past, this wasnt an issue, since India wasnt 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.
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.
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.
Finally, another currency that stands to gain from the demise of
the dollar and euro...

Currency #3 Canadian Dollar:


The Canadian dollar has a bright future.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.
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.
In addition, Canada didnt 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.
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.
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

THREE CURRENCIES READY FOR A HUGE REVALUATION

holding, with a further 20% gain against the U.S. dollar in five years.
Bottom line: Remember that were 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.
The best way to buy the yuan, rupee and Canadian dollar is to make regular investments over
time. Dont 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.
Good investing,

Karim Rahemtulla

THREE CURRENCIES READY FOR A HUGE REVALUATION

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