By Simon Black
Trump says the dollar is “too strong”. Here’s what to do.
One thing’s for sure: the next several years aren’t going to look anything like the last.
We can make a lot of guesses about what happens next with tax policy, international trade, relations with China, etc.
But there are a few things we can be almost certain about.
One of them is that the massively overvalued US dollar is bound to fall.
The US dollar has been at record highs for most of the last two years. And in the last few months it’s gotten even stronger.
From the Economist’s Big Mac Index to IMF studies of global purchasing power parity, the US dollar is overvalued by any objective metric.
More importantly, the overvalued US dollar is ALARMING to central bankers and policymakers, INCLUDING the chair of the Federal Reserve and the brand new President of the United States.
Janet Yellen, who runs the central bank, is concerned that the strong US dollar may lead to DEFLATION, which the Fed is prepared to prevent at ALL costs.
And Donald Trump has long criticized the dollar’s strength, telling the Wall Street Journal just last week that the dollar is “too strong.”
It doesn’t get any more clear than this.
Both the President of the United States AND the head of the central bank are telling you that they want the dollar to get weaker.
This is a major gift.
They’re basically giving you one last opportunity to trade your overvalued US dollars (which are bound to get weaker) for high quality, undervalued assets in foreign currencies that are bound to get stronger.
I’ll give you an example.
There’s a company in Australia called Mount Gibson.
As of September 2016, Mount Gibson was making about $6 million Australian dollars (A$) per quarter in positive cash flow. It had no debt, and a bank balance of A$400 million.
Here’s the really crazy part: based on Mount Gibson’s absurdly low share price at the time, the entire company was valued at just A$322 million.
In other words, a high quality, profitable company was worth $78 million LESS than the amount of cash it had in the bank.
Best of all, the company’s shares were denominated in Australian dollars, which has been trading near a multi-year low against the US dollar.
This was an actual recommendation in our 4th Pillar investment alert service, just a few months ago.
Needless to say, the share price has since soared, and our subscribers are sitting on big gains.
Mount Gibson is the perfect example of what I’m talking about: the opportunity to trade OVERVALUED US dollars for UNDERVALUED high quality assets.
These deals absolutely exist, and our Chief Investment Strategist, Tim Staermose, has an uncanny ability to find these hidden gems in markets where few investors are looking.
And this is precisely what his 4th Pillar Investment Alert service focuses on: no brainer, high quality, undervalued assets.
Next week I’ll explain more about how Tim and his team find these deals.
For now, I wanted to give you a gift of my own-- a free copy of the 4th Pillar issue from a few months ago in which Tim recommended Mount Gibson.
We had to strike out some of the text for regulatory reasons, but inside you’ll see precisely what I’m talking about-- what “no brainer” investments these sorts of opportunities are.
Please note that Tim is no longer recommending Mount Gibson-- the share price has already gone up too much.
But there are plenty of similar opportunities still out there.
(Overall the portfolio is up more than 80%. Simply put, this strategy works.)
You can download your free preview of the 4th Pillar issue here.
To your investment success, Simon Black
Trump says the dollar is “too strong”. Here’s what to do.
One thing’s for sure: the next several years aren’t going to look anything like the last.
We can make a lot of guesses about what happens next with tax policy, international trade, relations with China, etc.
But there are a few things we can be almost certain about.
One of them is that the massively overvalued US dollar is bound to fall.
The US dollar has been at record highs for most of the last two years. And in the last few months it’s gotten even stronger.
From the Economist’s Big Mac Index to IMF studies of global purchasing power parity, the US dollar is overvalued by any objective metric.
More importantly, the overvalued US dollar is ALARMING to central bankers and policymakers, INCLUDING the chair of the Federal Reserve and the brand new President of the United States.
Janet Yellen, who runs the central bank, is concerned that the strong US dollar may lead to DEFLATION, which the Fed is prepared to prevent at ALL costs.
And Donald Trump has long criticized the dollar’s strength, telling the Wall Street Journal just last week that the dollar is “too strong.”
It doesn’t get any more clear than this.
Both the President of the United States AND the head of the central bank are telling you that they want the dollar to get weaker.
This is a major gift.
They’re basically giving you one last opportunity to trade your overvalued US dollars (which are bound to get weaker) for high quality, undervalued assets in foreign currencies that are bound to get stronger.
I’ll give you an example.
There’s a company in Australia called Mount Gibson.
As of September 2016, Mount Gibson was making about $6 million Australian dollars (A$) per quarter in positive cash flow. It had no debt, and a bank balance of A$400 million.
Here’s the really crazy part: based on Mount Gibson’s absurdly low share price at the time, the entire company was valued at just A$322 million.
In other words, a high quality, profitable company was worth $78 million LESS than the amount of cash it had in the bank.
Best of all, the company’s shares were denominated in Australian dollars, which has been trading near a multi-year low against the US dollar.
This was an actual recommendation in our 4th Pillar investment alert service, just a few months ago.
Needless to say, the share price has since soared, and our subscribers are sitting on big gains.
Mount Gibson is the perfect example of what I’m talking about: the opportunity to trade OVERVALUED US dollars for UNDERVALUED high quality assets.
These deals absolutely exist, and our Chief Investment Strategist, Tim Staermose, has an uncanny ability to find these hidden gems in markets where few investors are looking.
And this is precisely what his 4th Pillar Investment Alert service focuses on: no brainer, high quality, undervalued assets.
Next week I’ll explain more about how Tim and his team find these deals.
For now, I wanted to give you a gift of my own-- a free copy of the 4th Pillar issue from a few months ago in which Tim recommended Mount Gibson.
We had to strike out some of the text for regulatory reasons, but inside you’ll see precisely what I’m talking about-- what “no brainer” investments these sorts of opportunities are.
Please note that Tim is no longer recommending Mount Gibson-- the share price has already gone up too much.
But there are plenty of similar opportunities still out there.
(Overall the portfolio is up more than 80%. Simply put, this strategy works.)
You can download your free preview of the 4th Pillar issue here.
To your investment success, Simon Black