Here we are going top outline a simple alternative investment which has produced and will continue to produce above average gains. Its simple to understand and easy to do so lets look at it. The Opportunity Its a simple buy and hold strategy in two currencies that are appreciating against the dollar. In pure simple terms the dollar is weak due to sluggish economic growth and debt and if you sell dollars and buy these currencies you have a solid long term opportunity for growth. The Canadian Dollar is just six years has moved from 64 to 94 and the Australian dollar from 47 87 so both are up more than 70% and more gains are expected. If you bought and held these and used a leverage of just 10:1 you would easily exceed 50% per annum. It's Easy To Do Today anyone can trade currencies minimums are low you can open an account online with just a few hundred dollars and the leverage you can get is 200:1 with many brokers. This means that if you open an account with $1,000 you can trade $200,000! Now you are not going to need all this leverage 10:1 is sensible and prudent for the buy and hold strategy recommended above. The Outlook Both the currencies are moving up due to strong economies reflected in rising GDP but they offer something more they are commodity currencies and the world is hungry for commodities. The Canadian dollar has risen as a result of the higher oil prices. Canada has the second biggest reserves of oil, with only Saudi Arabia having more known reserves. Canada has been the largest supplier of oil to the U.S for the last 7 years and with continued uncertainty in the Middle East will continue to buy off its friendly and stable neighbor. Australia is the third-largest producer of gold in the world today and also has massive reserves of other commodities that are used in the global economy.
Rising commodity prices hurt the dollar but strengthens these two currencies and the trend is up and looks set to continue for the near future. This is not a clever strategy its a common sense one and will appeal to investors who want high returns with relatively low downside risk. You dont need a fund manager to help you you can do it all on your own. Currencies can and do make savvy investors big profits and are a good diversification from volatile stock markets. Take a look at the potential of these two currencies and you may be glad you did.
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