Forex and Investing

FOREX AND INVESTING
By www.ForexConspiracyReport.com

http://www.forexconspiracyreport.com/forex-and-investing/
Do you want to make money when
currency rates change?

You probably do as you are interested
in Forex trading.

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Before We Continue…

Today we would like to look at Forex
and investing as a way to take
advantage of varying exchange rates.

Our focus is on the USD COP
exchange rate, the exchange rate of
the US dollar and Colombian peso.

The value of the Colombian peso
varies with the price of oil as
Colombia is a big oil exporter.

As the price of oil has fallen the peso
has gone from about 1800 to the
dollar in August 2014 to around 2600
to the dollar at the beginning of March
2015.

Obviously anyone who sold pesos for
dollars in August of 2014 has been
pleased.

Our thought is that perhaps it is time
to take advantage of the low value of
the peso before the Forex currency
rate goes back the other way.

And why invest in Colombia? What
are the factors that could drive the
value of the peso higher?

What investments in Colombia make
sense?

Forex and Investing in
Colombia, Why Invest?

Colombia has a history of sound
economic policies.

An excerpt from the CIA World
Factbook is useful.

Colombia’s consistently sound
economic policies and aggressive
promotion of free trade agreements in
recent years have bolstered its ability
to weather external shocks.

Real GDP has grown more than 4%
per year for the past three years,
continuing almost a decade of strong
economic performance.

All three major ratings agencies have
upgraded Colombia’s government
debt to investment grade.

Nevertheless, Colombia depends
heavily on energy and mining exports,
making it vulnerable to a drop in
commodity prices.

Colombia is the world’s fourth largest
coal exporter and Latin America’s
fourth largest oil producer.

Economic development is stymied by
inadequate infrastructure and an
uncertain security situation.

The SANTOS Administration’s foreign
policy has focused on bolstering
Colombia’s commercial ties and
boosting investment at home.

Colombia has signed or is negotiating
Free Trade Agreements (FTA) with
more than a dozen countries; the US-
Colombia FTA went into force on May
2012.

Colombia is also a founding member
of the Pacific Alliance – a regional
grouping formed in 2012 by Chile,
Colombia, Mexico, and Peru to
promote regional trade and economic
integration.

In 2013, Colombia began its
ascension process to the OECD.

The annual level of foreign direct
investment – notably in the oil and
gas sectors – reached a record high
of $16.8 billion in 2013, an increase of
7% over 2012.

Colombia’s infrastructure requires
major improvements to sustain
economic expansion.

Colombia has lots of unexploited
natural resources, lots of willing
workers and today the price is right for
investing in Colombia.

Colombia needs infrastructure
improvements.

That is our point about Forex and
investing in Colombia.

Forex and Investing in
Colombia, whence the
Colombian peso?

The value of the peso is tied to the
price of oil.

Last week we asked how high will
the dollar go. Likewise how low will
the peso fall?

It all depends on the major economies
and demand for crude oil.

Japan is in and out of recession and
China is looking at a new normal as
its economy cools.

Europe is starting a stimulus program
that will hopefully put more folks back
to work but will likely drive the Euro
down.

In short the peso will get worse if the
price of all falls farther and it will rise
with the price of oil.

For the short term the peso and all
investment denominated in peso are
selling at bargain basement prices.

Investing in Colombia

If the idea of investing based on
promising Forex exchange rates takes
your fancy and Colombia interests
you where do you look for
investments?

Visit Cartagena on the Caribbean.
There is a lot of construction and
other business activity as tourism is
booing. Visit Bogota, the capital of 8
million people and commercial center
of Colombia.

Visit the coffee growing district to
West of Bogota roughly within a
triangle formed by Medellin, Cali and
Manizales.

All of these areas offer investment
opportunities and reduced prices so
long as the low peso lasts.

And, if you bank your money in peso
and do not find a business opportunity

You can simply wait for the crude oil
cycle to go back up and bring the
peso back to the 1,800 to 1,600 to the
dollar range and convert back to
dollars with a fifty percent profit!

Read our article, Trading the
Colombian peso, written before the
recent downswing for insight into what
will happen when the price of oil and
the peso go back up.

Forex and Investing

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