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Safe Forex Havens in an Overpriced World
 

Safe Forex Havens in an Overpriced World

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Safe Forex Havens in an Overpriced World ...

Safe Forex Havens in an Overpriced World

http://www.theforexnittygritty.com/forex/safe-forex-havens-in-an-overpriced-world

There appears to be too much cash chasing too few assets all over the world. The inherent risk in this situation is that one or more asset bubbles will collapse taking the world or at least many national economies with it. Thus we look for safe Forex havens in an overpriced world. What happened? How will $10,000 an acre Iowa farms and $240 million London apartments affect currencies and relative foreign currency rates? Read on for our take on safe Forex havens in an Overpriced World.

Asset Bubbles Everywhere

There has been a competitive devaluation of Forex currencies going on for at least a year. More and more central banks are buying other currencies, setting low interest rates, or running up debt as a means of reducing the value of the home currency. Some nations are essentially printing money to increase the money supply and keep their economies from tanking. It used to be that Japan, followed by Taiwan, followed by China did this to keep their currencies cheap in order to gain a competitive advantage in exporting to the West. But, in the aftermath of the worst recession in three quarters of a century the USA and European Union, the two largest economies in the world jumped on board this train. We posed the question, who will win this competitive devaluation of currencies? And how can a Forex trader make a profit? Now as the devaluation of currencies via expansion of asset bubble expands should those with assets look for safe Forex havens in an overpriced world?

Interest Rates and Return on Investments

When the prices of things go up the rate of return on investment commonly suffers. When interest rates on bonds fall the prices of bonds commonly rise. What happens when interest rates go up? What happens when banks demand their money on non-performing loans that occur because someone borrowed way too much money to buy an asset that does not make enough money to support the principal and interest required to pay back the loan?

Fear of Currency or Currencies

Gold was the safe haven for many as it rose from $200 an ounce to $19,000 an ounce and now even gold bugs are thinking twice as gold hovers in the $1,300 an ounce range. So, folks with money are bidding up Iowa farm land, apartments in London and many other overpriced assets. This in many ways appears to be a flight from currency. But if you want to keep your money what are safe Forex havens in an overpriced world? A useful way to look at this is to look at where direct foreign investment is going. Take a look at a bit of useful info from the 2013 United Nations World Investment Report.

Visit www.TheForexNittyGritty.com to see the report.

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    Safe Forex Havens in an Overpriced World Safe Forex Havens in an Overpriced World Presentation Transcript

    • Safe Forex Havens in an Overpriced World Will Overpriced Assets from Iowa to London Damage Currencies?
    • There appears to be too much cash chasing too few assets all over the world.
    • The inherent risk in this situation is that one or more asset bubbles will collapse taking the world or at least many national economies with it.
    • Before We Continue… Click the links below to get your FREE training materials. Free Weekly Investing Webinars Don’t miss these free training events! http://www.profitableinvestingtips.com/free-webinar Forex Conspiracy Report Read every word of this report! http://www.forexconspiracyreport.com
    • Thus we look for safe Forex havens in an overpriced world.
    • What happened? How will $10,000 an acre Iowa farms and $240 million London apartments affect currencies and relative foreign currency rates?
    • Read on for our take on safe Forex havens in an overpriced world.
    • Asset Bubbles Everywhere
    • There has been a competitive devaluation of Forex currencies going on for at least a year.
    • More and more central banks are buying other currencies, setting low interest rates, or running up debt as a means of reducing the value of the home currency.
    • Some nations are essentially printing money to increase the money supply and keep their economies from tanking.
    • It used to be that Japan, followed by Taiwan, followed by China did this to keep their currencies cheap in order to gain a competitive advantage in exporting to the West.
    • But, in the aftermath of the worst recession in three quarters of a century the USA and European Union, the two largest economies in the world jumped on board this train.
    • We posed the question, who will win this competitive devaluation of currencies? And how can a Forex trader make a profit?
    • Now as the devaluation of currencies via expansion of asset bubble expands should those with assets look for safe Forex havens in an overpriced world?
    • Interest Rates and Return on Investments
    • When the prices of things go up the rate of return on investment commonly suffers.
    • When interest rates on bonds fall the prices of bonds commonly rise. What happens when interest rates go up?
    • What happens when banks demand their money on non-performing loans that occur because someone borrowed way too much money to buy an asset that does not make enough money to support the principal and interest required to pay back the loan?
    • Fear of Currency or Currencies
    • Gold was the safe haven for many as it rose from $200 an ounce to $19,000 an ounce and now even gold bugs are thinking twice as gold hovers in the $1,300 an ounce range.
    • So, folks with money are bidding up Iowa farm land, apartments in London and many other overpriced assets.
    • This in many ways appears to be a flight from currency.
    • But if you want to keep your money what are safe Forex havens in an overpriced world?
    • A useful way to look at this is to look at where direct foreign investment is going. Take a look at a bit of useful info from the 2013 United Nations World Investment Report. – shown in two parts.
    • Foreign Direct Investment Comparison of 2007 and 2012 In Billions of USD Taken from the United Nations World Investment Report 2013 Nation 2007 2012 European Union 859 323 UK 200 71 France 96 37 Germany 80 67 North America, incl. Mexico 363 408 Canada 117 54 USA 216 329
    • Mexico 31 26 Japan 23 123 China 84 84 China, Hong Kong 62 83 South Korea 9 33 India 25 9 South Africa 6 4 Russian Federation 57 51 Brazil 35 -3
    • Money today is flowing into The USA, Japan, South Korea and Hong Kong.
    • If where investment is going is a measure of safe haven Forex trading look to the currencies of the USA, Japan, Korea and Hong Kong as safe Forex havens in an overpriced world.
    • As always do your own homework and be suspicious of Forex tips.