Worst Recession Since the 19th Century? No Problem.
Wednesday, April 29, 2009
Currency Traders Steal the Show in Bermuda
Day three here in Bermuda started out with a bang yesterday…especially for currency traders.
The Sovereign Society’s two currency heavyweights, Cornelius Luca and Ashish Advani stepped up to the mic to give their predictions on what’s coming for the dollar, key exotic currency trades, and to share a little insight on the worst recession in any of our lifetimes.
Like many of my fellow early-riser attendees here at the Total Wealth Symposium, I was up and ready to go at 8:00 am Bermuda time (7:00 am EST.). I snagged a chair in the back of the room, and settled in to listen to the currency experts I came to hear.
And let’s just say, I was NOT disappointed…
“Worst Crash Since ‘29?” Try 1876.
How often have you heard in the last few months that we’re in the worst recession since 1929?
“Not so,” says adjunct NYU Professor Cornelius Luca. “You have to go all the way back to 1876 to find anything like the recession we have here. Sure ‘29 was bad…but it was different from what we’re seeing now.”
That’s not all. You know that impressive stock rally we’ve been enjoying lately? Cornelius says it’s been pure speculation – a product of the good sentiment in the market right now. Several key indicators in the market are telling us that this stock rally simply can’t last that much longer.
Looking at past bear market rallies during the ’70s, and even all the way back to the ’30s, it looks like this rally is following the same pattern…which is eventually heading lower.
Meanwhile, the government is investing the time, money and the lip service to push the markets higher but Cornelius says they’re not enacting any real change…no matter what they say.
“Every time you hear nice words from Washington, you need to know there’s no solution to housing. It won’t be fixed anytime soon.”
But here’s the thing…this all spells bad news for stocks. Cornelius’s domain is currencies. And he says that in a market like this, the Forex market can be the ultimate shock absorber for all these problems. As these issues filter through the largest, most liquid market, you can play all this negativity for profits in the Forex market.
Case in point: The swine flu. Right now, the Forex market is absorbing the unrest from this flu outbreak. As a Forex trader, you can play it from both sides. If you believe in the flu, you can short the Mexican peso. If you believe the swine flu will vanish as quickly as it hit the news, then you can buy the Mexican peso as a spec.
I wish I had enough space here to tell you everything that Cornelius gave our attendees yesterday. But you’ll hear more from him at our currency bootcamp…
It’s Not All Bad News…
To say Ashish Advani has done it all, doesn’t even begin to cover it. Armed with his MBA in finance and years of accounting experience, Ashish has lived, worked and traded currencies on four different continents.
And yesterday he stepped up to the podium with some much-needed good news. “I’m a trader…so it’s my job to help you make money no matter if the markets go up or down.”
Ashish has found the perfect niche market to do just that…the exotic currency market.
As most long-term FX University readers know, an “exotic” currency is any currency that’s not part of the G-10. These exotic currencies also historically have lower liquidity, but Ashish says they are liquid enough to trade.
Yesterday, Ashish broke the key exotic currencies down into three categories:
- Commodity Trackers: The exotic currencies that track commodities closely. These include the South African rand and the Brazilian real, among others.
- The Euro Followers: These are all the Eastern European country’s currencies, with slightly smaller economies, but low liquidity. These include the Polish zloty, the Hungarian forint, and the Czech koruna.
- The Harder to Follow: These are the currencies mainly out of Asia, including the Thai baht and the Singapore dollar.
Ashish took all our attendees through all the key trading indictors of his favorite pairs right now, the USD/PLN (the polish zloty), and the USD/MXN (Mexican peso.). He explained how to use stop-losses and entry points to buy and sell your way through this recession.
“I’m a trader…I spend my life staring at my computer screen…looking for technical indicators…and then I go home and watch paint dry – it’s great.”
Of course, Cornelius and Ashish weren’t the only speakers yesterday. In fact, conference attendees were treated to presentations from eight other experts on Day three alone in Bermuda.
These diverse wealth specialists spoke on everything from getting paid to wait for the stock recovery with high-quality, distressed debt to legal tax avoidance….from buying Panamanian real estate to investing in tequila (yes, the same tequila I spotlighted in my article yesterday). For more details on all yesterday’s events, check out my colleague, Matt Collin’s A-Letter from today.
But as always, we’re sticking to currencies here in FX University, which brings me to the “really big” currency show happening later this afternoon…
T-Minus Six Hours Till the BIG Currency Finale
Remember, all the currency presentations this week are just building up to the three-hour currency bootcamp this afternoon here in Bermuda.
This first ever currency bootcamp will feature both currency heavyweights we heard from yesterday, Cornelius Luca and Ashish Advani along with your daily FX University writer and editor of Currency Capitalist, Chuck Butler.
In case you haven’t heard, we’ll be right there to record this entire three-hour currency bootcamp, specifically for all you dear readers who had to stay home this week.
You can get your hands on a copy of the MP3 audio file of this entire seminar, simply by trying a risk-free trial to Chuck Butler’s month’s currency newsletter, the Currency Capitalist this week.
Every single month, Chuck brings you the easiest ways to hold foreign cash for the long-term in Currency Capitalist…and play some of the world’s most profitable currency trends…from how to buy into the only countries that have rejected quantitative easing…the easiest way to profit from the coming Treasury Bubble…to the easiest way to hold gold and silver for the long-run…and make a killing next time Geithner inadvertently tells the truth…
Plus, as a Currency Capitalist member, you get free access to all our Currency Capitalist reports, packed with more strategies about how to hold currencies for the long run…
And as I said, subscribe to Currency Capitalist this week, and we’ll give you FREE access to the three-hour BIG currency finale presentation this week…for the regular membership rate of US$49.
So why are we giving away all this for just US$49?
It’s simple. We know money’s tight right now, but we still want to make sure you have the access to the information that will give you an edge in what Cornelius called today “the worst market since 1876.”
I’ll be back here tomorrow to give you an inside look at this final currency bootcamp. In fact I need to run and grab a seat for this three-hour event right now…so I’d better sign-off.
Till Tomorrow!
Kat Von Rohr
P.S. The Total Wealth Symposium officially ends today with BIG currency finale this afternoon, so that means you only have untilbut you only have until MIDNIGHT tomorrow Friday night to take advantage of this unprecedented offer. You can get the audio from today’s currency bootcamp + Currency Capitalist membership for US$49. Click here to order now.