Fellow Investor, For most investors, it will be remembered as Black October -- one of the worst months in Wall Street history.
You read that right: while the major stock indexes were down as much as 20% during October, my subscribers were actually enjoying double-digit gains of up to 20%. To be specific: one of our four investments -- all of them variations on a single investing strategy -- was up 7%. Another was up more than 16%. A third soared more than 20%. The fourth was also in positive territory. Think about that. Four investments, four winners. Two of them up by double digits. Not a single one in the red. And all that in the midst of a financial panic that wiped out some $10.5 trillion in investor wealth -- and even put some of the world's top hedge funds out of business. At this point, I'm betting you have some questions. Such as: "What exactly is the strategy behind those four winning picks -- and how can I apply it to my portfolio?" And also: "How exactly do you pick winners even in the midst of a once-in-a-century market crash?" And maybe: "Who exactly are you anyway?" Well, I'm about to answer all those questions right now... The "Alpha Investor" Way to Profit My name is Nicholas Vardy. I'm an American, educated at Stanford and Harvard, but I make my home in London -- where I'm an SEC-registered investment advisor and the founder and Chief Investment Officer of Global Guru Capital. I'm also founder of the London Junto -- an inner circle of top money managers and other so-called "Alpha Investors" who together are responsible for about a quarter of all the hedge fund money in Europe. My investment philosophy? As an old Alpha Investor saying has it: "There's always a bull market somewhere." Or, to put it another way: No matter what the state of financial markets, there is always a strategy out there that can make you money. The key is to recognize opportunities wherever they may be and, more importantly, detach yourself from old strategies that are no longer working. That's my approach at Global Stock Investor, and it's paid off big-time for my subscribers. For instance, I was among the first to see the coming profit waves in soft commodities, emerging market telecom and other hot new trends -- enabling my subscribers to bank hefty profits like these:
And I made all these trades in 2008 -- a year when most global markets are down more than 50% or more... But after the markets crashed in summer of this year, I knew I had to shift gears. And since then I've been using an unusual new strategy to steer my Global Stock Investor subscribers safely and profitably through the Great Crash of 2008. Actually, the strategy isn't "new" to me. It's similar to one I used when managing a global hedge fund after the dotcom bust in 2000. It kept my investors out of trouble then. And it's doing the same today. Financial history may not repeat itself exactly, but it does rhyme. Let me explain... An Investment Strategy Unlike Any Other -- As every investor knows, stocks tend to move up and down together, giving us bull and bear markets. So while a rising tide lifts all boats, the opposite is also true: an ebbing tide can leave all boats in the shallows. That's where most stocks are right now, of course. And no one can say for sure how much lower they may go. But there is one kind of investment where there are always upward trends -- which, in times like these, makes it the best and safest investment you can make. What is this "mystery" investment? The answer may surprise you: currencies. You see, in the world of currencies, which are always traded in pairs -- betting one against the other -- there is a winner for every loser. Think of it like a seesaw, with two currencies perched at either end. If one goes down, the other must go up. So even when all other types of investments are trending downward -- or nowhere at all -- there are always upward trends in currencies, which are simply the flip side of the downward ones. And here's the thing: Once a currency starts to trend, it tends to last years -- even decades. So, for instance, the U.S. dollar tends to move in six- to seven-year cycles, shifting between periods of extreme undervaluation to overvaluation against foreign currencies. What all this means, of course, is that no matter what the overall financial markets are doing, there are always safe and profitable investments to be made in currencies. The trick, of course, is spotting currency trends early and getting on the right side of them -- that is, correctly discerning which of two currencies (which always trade in pairs) is trending up and which one is trending down. Fortunately, there's a kind of science to that -- based on an iron law of economics that makes currency trends almost as regular and predictable as the tides... The Hidden Principle Behind Successful Currency Plays Short-term currency fluctuations are all but impossible to predict. Better to leave that to the day-traders. But once you can see past the factors that contribute to short-term volatility, you begin to see how currency trends obey an iron law of economics that economists call Purchasing Power Parity (PPP). What exactly is meant by PPP? Simply this: In an ideal world where all exchange rates were set perfectly, a dollar, exchanged for the local currency, would buy the same amount of the same goods across all countries. In reality, of course, a dollar may buy you a lot more -- or less -- of the same goods depending on the currency you exchange it for. And when that happens, a currency may be said to be overvalued or undervalued relative to the dollar. Confused? Let me make it clearer by means of The Economist magazine's famed "Big Mac Index". By comparing the cost of Big Macs -- which is produced in about 120 countries -- the Big Mac Index calculates the exchange rate (the Big Mac PPP) that would result in hamburgers costing the same in America as it does abroad. Compare the Big Mac PPP to the actual market exchange rates, and... voilà! You see which currencies are under or overvalued. Granted, the Big Mac Index is far from perfect. Because of varying labor and input costs, the Index is most valuable when comparing countries at roughly the same stage of development. But the important point is this: according to the law of PPP, eventually such imbalances between currencies start to right themselves and move back the other way. And when they do -- that's when the savvy investor makes his move. And Now, it's Easier than Ever to Profit from Currencies Until recently, the currency market was all but closed to individual investors. Banking conglomerates and large multinationals were the main movers of this market place. But now, thanks to the proliferation of exchange traded funds (ETFs) in recent years, currency trading has gone mainstream. Today, you can trade currencies as easily as you buy GE, Cisco or Intel -- but with higher returns and lower risk than you'll find in almost any stock in today's market. And that's what subscribers to my Global Stock Investor investment advisory are doing right now. Yes, that's right: Even in the midst of the worst crisis in recent stock market history, my subscribers are making safe, steady profits on a series of shrewd, well-timed currency plays, while staying out of stocks until (God willing) the markets show signs of real recovery. And in the next few moments, I'm going to reveal to you three of my favorite currency plays -- just to encourage you to give Global Stock Investor a try... Currency Play #1: The Best and Safest "China Bet" Today Based on the "Big Mac Index," the Chinese yuan is hands-down the most undervalued currency on the planet -- trading 49% below its PPP rate. Put that together with China's well-telegraphed, gradual appreciation of the yuan against the dollar, and you get "one of the few sure bets in global financial markets," according to TheWall Street Journal. Right now, thousands of Hong Kong residents are buying the maximum allowable 20,000 yuan, converting their U.S. dollar-pegged Hong Kong dollars into the Chinese currency. By doing so, they've brought between $50 billion and $200 billion into China in just the first six months of 2008. The flood of outside money pouring into the yuan helps explain why China's foreign currency reserves have grown by an average of $1.6 billion a day this year. At the end of June, China's reserves stood at $1.81 trillion, up about 18% from the beginning of the year. The result? The yuan has risen 7.1% against the dollar just this year -- and a total of 20% since China abandoned its dollar peg in 2006. But as the "Big Mac Index" reveals, it's still got a long, long way to go to get back to parity with the dollar. And guess what? Even the global economic slowdown spells good news for the yuan -- because it adds fresh pressure on China to revalue its currency, as its trading partners increasingly claim that an artificially low yuan is giving China's exporters an unfair advantage. Bottom line? Even as the Chinese stock market continues to decline (like stock markets worldwide), the appreciating yuan is turning out to be the #1 " China play" of 2008. Our Global Stock Investor position in the Chinese yuan is the WisdomTree Dreyfus Chinese Yuan (CYB) -- an easy-to-buy ETF that trades on the NYSE and offers steady, long-term appreciation and a rare safe haven in otherwise tumultuous markets. I'll tell you more about this easy-to-buy ETF in a Special Report called Where the Smart Money is Going Now: Three Ultra-Safe Currency Plays for Today's Turbulent Markets--yours FREE with your risk-free trial subscription to Global Stock Investor. But that's not the only great currency play you'll get in this FREE Special Report... Currency Play #2: Betting Against One If the Chinese yuan is the most undervalued currency in the world, this currency is among the most overvalued. In fact, this currency has never has been this overvalued in its history. And all you have to do to take advantage of that is to bet for the U.S. dollar against this currency. Remember: all currencies trade relative to one another. The U.S. dollar doesn't have to be inherently strong -- this currency just has to be relatively weaker, which it is. So, what's the best way to profit from this currency's decline against the dollar? A special Exchange-Traded Note (ETN -- a close cousin of ETFs) that replicates a special "Double Short Index" -- meaning that for every 1% weakening of this currency relative to the U.S. dollar, the level of the index generally will increase by 2%. So, if this currency declines 10% from its current level of, you can expect to lock in a gain of twice that with this ETN. That gain would be about 20% -- about as good as it gets in today's market. Again, I'll tell you everything you need to know about this easy-to-buy ETN in your FREE Special Report, Where the Smart Money is Going Now: Three Ultra-Safe Currency Plays for Today's Turbulent Markets. But first, let me tell me about the third and final currency play you'll find there... Currency Play #3: A Beaten-Down Currency Rises Again If the Chinese yuan is the most undervalued currency in the world, this currency is the most undervalued currency of any developed economy in the world. But now it's due for a rise... one that's already in the early stages. During recent months, in fact, this currency has risen 10.9% against the Australian dollar; climbed 8.2% against the New Zealand dollar; and gained 9.7% against the British Pound Sterling. But according to the Big Mac Index, this currency remains undervalued by approximately 27%-- which gives it a long way to go to achieve Purchasing Power Parity. And because the ETF I'm recommending tracks this currency against the U.S. dollar, it also acts as a hedge against any weakness in the dollar down the road. You'll find everything you need to invest in this currency ETF -- plus the other two I've already spoken about -- in Where the Smart Money is Going Now: Three Ultra-Safe Currency Plays for Today's Turbulent Markets. Again, it's yours FREE with your risk-free trial subscription to Global Stock Investor. Special New Subscriber Discount -- Save 60% One year of Global Stock Investor normally costs $249. But for a limited time, you can try this exciting source of money-making advice at the Special New Subscriber Rate of just $99.95 -- an instant 60% savings off the regular rate of $249. (And a tiny fraction of what I charge my private clients to manage their global investments.) Think about it: that's around 27 cents a day to instantly get the best global investment advice available anywhere. So, for just $99.95, you'll receive:
PLUS, for the same price you also get two FREE bonuses:
And, You're Protected by My Ironclad Double Guarantee I want you to be sure about Global Stock Investor-- so take time to read it and track my recommendations for a while, knowing that you're protected by this double guarantee:
Even BIGGER Savings and TWO EXTRA BONUSES Take two years of Global Stock Investor for just $189 -- a savings of $309 off the regular two-year rate of $498. You'll get 24 monthly issues plus 104 weekly e-mail Hotline updates. You'll also receive both of the above two bonuses, PLUS 3 extra bonuses --
The One Thing You MUST Understand About Investing Today... Markets have their seasons -- and investing strategies have to change along with them. The important thing is to be flexible -- to be ready and willing to adapt your investment strategy to current market conditions. That's what we do for you at Global Stock Investor. Rather than stick blindly to what worked yesterday, we're always looking for what works now -- and what will work tomorrow. Currencies is the strategy that works today. It may not be the strategy that works six months from now. But you can count on one thing: before it stops working (or just stops working better than the alternatives), my subscribers will have long since moved on to much "greener" pastures. In fact, I'm already putting some great investment possibilities on a "Watch List" at Global Stock Investor -- and as soon as conditions are right, I'll tell my subscribers to pull the trigger. But right now, currencies are where it's at -- and there's a long way to go before the picks I'm recommending in this letter have exhausted all their profit potential. So don't delay -- the sooner you subscribe, the bigger the profits you'll enjoy. Reserve your place now by clicking on the "subscribe" button below or by calling toll-free 1-800-211-4774 today! Sincerely, P.S. The recent turmoil in global financial markets makes stock markets a tough place to make money today. Investing in currency ETFs is a safe and profitable alternative. Your FREE copy of my Special Report, Where the Smart Money is Going Now: Three Ultra-Safe Currency Plays for Today's Turbulent Markets will tell you everything you need to profit from the three currency plays I've talked about in this letter. But as always in investing, time is of the essence. To find out the names of my super-safe currency bets, call toll-free 1-800-211-4774 or click on the "subscribe" button below right now. | ||||||||||||||||||||||||||||||
But for subscribers to my Global Stock Investor newsletter, it was just another month of double-digit profits as usual.
