Friday, June 10, 2011

Colone as a currency play

We have known for some time that the Colone (Costa Rican Currency) has been performing strongly against the Euro and the Dollar.

The Colone is up over 22% against the dollar over the past 16 months and almost 30% against the Euro and our views are backed up by this interesting article by Jackie Flynn, Publisher of International Living:

3 SIMPLE STEPS
to Protect and Grow
Your Savings as the End
of the "Age of America" Draws Near...

Dear International Living Reader,

Donald Trump... Mitt Romney... Barack Obama...

Despite all the hype, it won't matter much who becomes America's next Commander in Chief...

...Because according to a top-level economic report,
the next president of the United States could be the LAST
to lead the world's biggest economy...

This tectonic shift in global economic power would have two very important consequences:

  1. The standard of living in the United States will drop.
  2. The buying power of the U.S. dollar will plunge even further.

According to the report – which the International Monetary Fund quietly posted on its website last month – adjusting for exchange rates, the Chinese economy will grow to $19 trillion in 2016. Meanwhile, the size of the U.S. economy will rise to just $18.8 trillion.

Take a moment to digest that...

In the 1980, China was poorer than Afghanistan...and it had half the per capita income of Niger or Chad.

And as recently as a decade ago, the U.S. economy was three times the size of the Chinese economy...

...Yet in less than five years from now China
could eclipse America in economic might...

Unfortunately, most folks simply aren't prepared for this. And as a result, they are in danger of seeing their savings shrink over the coming years. That's because:

  • They have ALL of their savings in U.S. dollars or U.S. dollar-based assets such as their house and other property investments.
  • They have ALL of their stock market investments in U.S.-based companies that rely for their profits on a stagnating U.S. economy.
  • They have too much of their money invested in U.S. government bonds – investments that could be WIPED OUT as inflation rises.
  • They have no exposure to dollar-hedging natural resources such as oil and agricultural commodities.

But investors who understand the ongoing shift of power stand to profit from the growing number of opportunities outside of America's borders.

  • You can reduce your exposure to the U.S. dollar by investing in "anti dollars" – currencies that go UP when the dollar goes DOWN.
  • You can invest in the world's fastest growing economies – places such as Brazil, India, Turkey and Indonesia – and favor companies poised to profit from the explosive growth of the emerging market middle class.
  • You can keep a portion of your wealth in assets that rise along with rising inflation – such as precious metals and currencies that have done well in inflationary cycles.
  • You can benefit from the strong trend upwards in commodities prices brought on by rising populations and per capita incomes in the emerging world.

And an all-new International Living Investor will show you in a jargon-free, easy-to-understand way how you could protect what you already have and position your portfolio for future profits.

But, ultimately, it's up to YOU which group you belong to – those who take action or those who don't.

It's Happened Before –
When the Sun Set on Britain's Empire

This won't be the first time an economic superpower has come and gone. And it won't be the last.

Imagine, just for a moment, it's 1910...and that you are part of the comfortable British middle class.

You work for a successful business. You earn a decent wage and provide for your children. You are neither at the top of the economic pyramid...nor the bottom.

Life is good...

London is the center of the world. And the British Empire stretches all the way from Australia...to India...Singapore...to Canada.

The currency in your bank account, the British pound, is the currency of global trade. And your government is the world's biggest creditor.

You're not worried about this changing. Because your army...and navy...are the most powerful on the planet. And because you have known nothing different. As far back as you can remember Britain has stood head and shoulders above all the world's other economies.

The world is the way it should be. And you see your children...and your grandchildren...enjoying the same standards of living as you do. Or better.

But it is a false sense of security.

Because by 1920 Britain is close to bankruptcy... Its empire is in tatters... The pound is devalued... And you and your children face an uncertain future...

Greece. Rome. Portugal. Spain. All at one stage or another have been dominant world powers, only to shrink in stature and be forced to share the world's economy with others.

The End of the "Age of America"...

This is a story that affects YOU.

You see, like it or not, the end of the "Age of America" is the biggest economic story of our time...

...It will change how you live and how your children live.

...It will affect every investment decision you make for the rest of your life.

...But it will also create huge opportunities to profit, as the rest of the world catches up to the standards of living we've taken for granted for so long in America.

That's why I'm offering you a 100% free subscription to our newest investment advisory service, International Living Investor.

...Plus you'll get a copy of our special investment report, "The End of the Age of America – 3 Simple Steps to Safety."

In it you'll find:

  • The 3 Best "Anti Dollar" Currencies to Own Now – Perhaps the single best currency diversification strategy, as the dollar slowly loses its footing as the world's reserve currency.
  • The Paycheck You're Not Collecting (But Could Be) – How to get "paid up front" for owning overseas stocks. And our picks for the 3 best income emerging market stocks to own now.
  • The 4 Rules ALL Super Investors Follow – The 4 rules pros use that have been PROVEN to beat the market...and how to apply them to your own portfolio.


Why There's Never Been a
Better Time to Invest Overseas

It's critical that you take steps now to protect your portfolio from the changes that are coming.

But that doesn't mean you should panic. Far from it!

Because as International Living Investor editor Chris Hunter puts it, "There's never been a better time to be a global investor."

In fact, right now it's virtually impossible NOT to make money from the tectonic shift of resources and capital away from America to the emerging world.

Here are just some of the potential profit making recommendations readers of International Living Investor have had access to so far.

  • How to Avoid the Dumbest Investing Mistake of 2011 – The single most important rule for investing in the global commodities markets and the two emerging powerhouse economies best poised to profit from higher energy prices.
  • The Best Asset to Own as America's Power Fades – Why America is destined to lose its "top dog" economic status and the one asset to own as its power begins to fade.
  • These Markets Could Triple over the Next Few Years – The 5 key factors for emerging market gains... and the 4 emerging markets that could triple as a result.
  • You Could Make 1,000% on This Sector, So Why Wouldn't You – The one sector that could rise by 1,000% by 2014. And the best way to play it.
  • This "Safe Haven" Currency Is about to Skyrocket – Why a tiny landlocked country's currency could still be the best place for your cash when world markets come under stress and how to buy into it through an easy ETF.

Don't worry. You won't need to open up an offshore account to profit from these global growth plays. And you won't have to send a single dollar overseas.

In fact, all the investment ideas you'll hear about from International Living Investor can be bought and sold on regular U.S. stock exchanges...using regular dollars...and a regular U.S. broker.

International Living Investor won't clog up your inbox either. All the investment insights and recommendations will be packed into four easy-to-read issue each week.

Here's exactly what you'll get when you enter your email address below.

  • Profit insights from Chris and his team of guest investment experts. These will arrive in your inbox every Monday, Wednesday, Friday and Saturday. Each one will take no more than 4 minutes to read. And each one will be easy to understand and jargon free.
  • Immediate access to our latest special investment report – "The End of the Age of America – 3 Simple Steps to Safety." And the three actionable recommendations on how to protect your savings as America's position of economic "top dog" changes.
  • Our iron-clan guarantee that we will NEVER rent or sell your email address.

International Living Investor is more than just investment recommendations. It's a wide-lens view of the biggest trends shaping the world today...and the perfect complement to your daily IL Postcards.

Investors' faith in Wall Street is at an all-time low...and for good reason.

There's a growing disillusionment with America's big corporations, banks and political parties. And the 2008 stock market crash was a big blow to all of us.

Yet there are literally thousands of ways to profit from the power shift away from traditional economic strongholds of Europe and the United States to the world's growth economies.

And few investors are even looking at these opportunities. Instead, they continue to invest in the same bunch of U.S. companies...with the same negative results.

It's hardly surprising most investors are so glum! If you buy the same stocks everyone else is buying, you'll have the same results as everyone else. That's just the way the market works.

But by looking outside the box...and outside of America...you immediately increase your chances of investment success.

It's an exciting time to be an international investor. I hope you'll join us as we embark on what's set to be an extraordinary journey.

Sincerely,

Right-click here to download pictures. To help protect your privacy, Outlook prevented automatic download of this picture from the Internet. Jackie Flynn
Jackie Flynn
Publisher, International Living

P.S. Too many Americans miss out on some of the world's most profitable investments because they believe investing overseas is "too foreign" or "too risky." But as an IL Postcards reader, you already have a global perspective. And you know that opportunities don't end just because America's borders do. If I'm right, you already know more about these exciting opportunities than most...which is why I believe International Living Investor is an essential part of what International Living as to offer.

P.P.S. Remember, International Living Investor is completely free to receive. There are NO hidden agendas and NO hidden costs. If you're not completely happy with the actionable recommendations Chris and his team provides, you can simply unsubscribe with one click of you mouse. But judging from the number of IL Postcards readers already enjoying Chris's insights –it will make the perfect complement to your daily Postcards.


To read more visit International Living

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