Hello and welcome to our FX blog. If you are wanting active management of your funds without having to pay high commissions and be able to access your capital any time without penalties, you have come to the right place. With our assistance, we can set up your account to be hedged across 8 different currencies, instead of it all based in one potentially volatile currency.
Membership
Are you well diversified? Is your savings all in USD or spread across multiple types of assets, but still based in USD? If it is, you are still not what we consider ultimately hedged, as in hedged into other nations currencies which are backed by their allocations, production, resources and politics. We believe the best way to be hedged to to be spread across the 8 most respected western currencies. Those being the Australian dollar, Canadian dollar, Swiss franc, Euro dollar, Great British pound, Japanese yen, New Zealand dollar and United States dollar. Rotating among these with a slight edge producing a gain above equilibrium.
This strategy uses the same free floating cash approach as all large banks, but with the tactical advantage of intermittent currency exposure utilizing a probable edge.
Think of this system as exactly the same as holding cash in a bank account, but with the ability to use leverage, letting trades sit until hitting either a Target, Stop or direction reversed. This strategy is extremely diversified and as such, is not subject to over weighted moves due to all your cash being held in a single currency bank account.
The goal of the system is to minimize the volatility associated with a traditional cash bank account. Substituting single currency volatility and buying power decay, with account stability and growth.
There is no obligation and you can cancel the program at anytime.
Thursday, October 2, 2014
USD a R rated feature
In 1985, the dollar was strong and the economy and equity markets were how they say, “booming” They did this with all the higher interest rates enforced by the FED, then again in 2000. These were the times the dollar compared to right now, yet the USD is still 30% weaker than in “85’ and 20% weaker than in 2000. So how is the USD soaring above all these other currencies? We as investors want to look at the Purchasing Power Parity value or (PPP) that is just what Scott Gannis did when he wrote the article
“The Return of King Dollar” he decided to compare five different currencies to the USD, in this form he states…
“PPP theory holds that, over time, currencies move vis a vis others in a way that reflects changes in relative prices between countries. Currencies that depreciate against others typically have higher inflation rates, and currencies that appreciate have lower inflation. For each currency, I have picked a base year in which I thought that prices were in rough equilibrium, and then adjusted that value over time for changes in relative inflation rates. The current PPP value of each currency is therefore approximately equal to the exchange rate that would produce roughly equal prices for a given basket of goods and services in each country.” He goes on to show graphs that use a basket of goods (commodities) with each currency and used inflation information for charts from the U.S., the PCE deflator; for Australia, the CPI All Groups Goods Component; for Canada, the CPI; for the Eurozone, the German CPI; for Japan, the CPI Nationwide General; for the UK, the RPI less Mortgage Interest Payments.
No shock the USD lost major value against all. So what is really moving the market? CNN put out a “Fear and Greed index” I mean truly they did! I find it amusing that how this can be measured, short fear, long fear? Sure why not. Investors should be terrified right now. Fear, as I have said before plays into why the reality of why the USD is weak, the traders ever looming fear of the market collapse. The true reality that the USD is a reserve currency and will have to handle the EUR’s deflation. The present investment demand from china is low, as well as need for oil. We see that commodities are decreasing all over the market. Leverage is at a all time high. In fact right now the market looks like a horror movie “Soul of Dudley” and just wait the sequel is coming soon, Blockbuster hit “were F@$#ED” Ethics in the U.S. are separated by law apparently.
Holding short at 1309.88 current price 1214 with a gain of 7.3%
Fxmade2trade