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How to Earn 20% on Your Cash SavingsBy
Tuesday, October 1, 2013
We have an incredible situation in the currency markets right now...
It's a crazy circumstance that doesn't come around often. Since 2009, this opportunity has popped up just once a year. And on average, these trades have led to 20% gains in less than three months.
Our opportunity is even better today...
Regular readers know I love HATED investments. When the majority of investors have given up, we have the best opportunity to make big gains.
That is where we are in Australia right now. No one wants to own the Australian dollar. Investors are bailing out...
We can see this clearly through the Commitment of Traders (COT) report on the Australian dollar.
The COT tracks the real bets of futures traders. Based on history, we want to own the Aussie dollar when futures traders all think the currency is going to fall. And that's exactly what we have today. Take a look...
 Today, the COT report is coming off the most bearish reading ever in nearly 20 years of data. The Aussie dollar is as hated as it gets.
As the chart shows, the COT reached local bearish extremes each of the last five years. Buying at those extremes would have led to an average return of 20% in just three months.
Today, we have the exact same opportunity... except traders are currently at their most bearish reading ever. As contrarian investors, this is the best opportunity in the Aussie dollar since 2009. The Aussie dollar has the three things I look for in an investment. It is 1) cheap, 2) hated, and 3) just starting an uptrend. Shares of the CurrencyShares Australian Dollar Trust (FXA) are up nearly 5% over the last month. But this is just the beginning of a greater move.
Based on history, 20% gains in three months are likely. And today's opportunity is even better than what we've seen in the past. FXA gives us a great chance to pocket double-digit gains safely, right now.
Good investing,
Steve
Further Reading:
"For some reason, most Americans hold most of their money in American dollars – money 'backed' by a government so inept, it manages to lose money making money," Steve writes. He says this is why readers should get some of their cash OUTSIDE of the U.S. dollar and into a safer place... like Australia. Read the full story here.
In June, Steve told readers about another country that's treating money well. "Our odds are about as good as they get in the financial markets..." he writes. "It's time to buy." Get all the details here.
Market NotesA HUGE UPTREND IN NATURAL GAS INFRASTRUCTURE The U.S. is on its way to becoming a major energy exporter. And it's creating a boom for infrastructure companies.
As regular readers know, the U.S. is sitting on massive supplies of natural gas. But the huge jump in supplies sent prices plunging. Now, the sensible move for the U.S. is to profit by exporting some of its gas. As Porter Stansberry wrote earlier this year, "America's massive energy surpluses will be exported. And that shift represents the greatest investment opportunity of the decade."
But before natural gas can be shipped overseas, terminals need to be built. That's where infrastructure companies like Cheniere Energy (LNG) and Chicago Bridge & Iron (CBI) come in. Cheniere Energy plans to open America's first export facility in late 2015. And Chicago Bridge & Iron is one of the world's largest builders of loading facilities, storage facilities, and all the other things needed to move oil and gas around the world.
As you can see in the chart below, these companies are soaring. Both stocks are up 70%-plus over the past 12 months... It's a bull market in natural gas infrastructure.
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