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A 'Zero-Downside' Way to Get Out of the U.S. DollarBy
Wednesday, September 24, 2014
You're in Vegas... at your favorite casino... letting it ride.
You might have a 45% chance of winning money and a 55% chance of losing money. That's the way it goes.
You might make a little money here, and a little there... But over time, the house always wins.
The stock market is a similar roll of the dice. The moment you place your bet, you are now gambling... And unfortunately, your odds are not that strong.
But what if there was an "ideal wager" out there – a "bet" with no downside risk – but all of the upside potential?
It's not often that we can find an ideal wager like that – an asymmetrical bet. But they do exist...
For example, my friends at EverBank have put together a product that lets us get all of the upside in a basket of volatile assets – with no downside risk.
If the assets go up, you'll pocket all those gains. But if the assets fall, you won't lose any money. How much better does it get than that?
I can't guarantee you'll make money. But there is only a microscopic chance you could lose money. And something really extreme would have to happen – like bank and government insurance failures.
Let me explain how this new product works...
During the global financial crisis, a simple basket of five currencies crashed 24%. Over the next two years, the same basket increased 32%. And since 2011, the same basket is down 26%.
The chart below shows what I mean. It's the 10-year history of the basket of currencies I described above...
 This basket of currencies has crashed and soared 24%-plus four times over the last 10 years. That doesn't guarantee upside from here... But buying in below financial-crisis lows is a great opportunity.
The basket is currencies from the BRICS countries. The BRICS include Brazil, Russia, India, China, and South Africa – the emerging markets set to take over the world in the next few decades.
Today, we have a way to buy into a basket of these five currencies with zero downside risk. Importantly, this is an asymmetrical bet... meaning we take all the upside, but lose nothing if these currencies crash in price.
We can do this through EverBank's newest MarketSafe CD...
EverBank's MarketSafe CDs work just like traditional bank CDs. They have no downside risk. Your money is safe and government insured. However, instead of paying a micro interest rate like most bank CDs, this CD gives us upside on the BRICS currencies.
Specifically, by owning this CD, you will get the profits based on the returns of these five currencies over the next three years. If they fall in value, it's no big deal. You'll receive all of your initial investment back.
Our only risk is opportunity cost. But banks in the U.S. pay practically zero. So if you're looking to park cash for a few years – and have some upside potential – this CD is a no-brainer.
Of course, we don't know if these BRICS currencies will rise. What we like is the nature of the bet – we get all the upside potential, with nearly zero downside risk. That's enough to get me excited!
If you're interested, you can find the full details, including the Term Sheet and important disclosures, here.
Good investing,
Brett Eversole
P.S. While my parent company has a marketing relationship with EverBank, my publisher – Stansberry Research – receives nothing in return for recommending its products. We only share them with you because we believe in the ideas. And because the folks at EverBank always treat our readers well.
Further Reading:
Steve's readers have made a ton of money in U.S. stocks over the last couple years by following his "Bernanke Asset Bubble" script. And Steve says "now we're seeing 'The Sequel' setting up in Europe..." Learn the best way to take advantage of it here.
Brett Eversole recently singled out one European country that's especially attractive today. "Mario Draghi is doing everything he can to boost stock prices in Europe," he writes. "And history shows Italy could be the big winner." Find out why Brett likes Italy right here.
Market NotesTHE 'OFFENSE' BUSINESS CONTINUES TO BOOM The U.S. government is still spending... and "offense" contractors are still raking in billions.
A little over a year ago, we noted how the U.S. is involved in so many foreign wars that defense contractors should be called "offense" contractors. We also noted how many folks warned against investing in this industry... due to an expected reduction in government spending. But today's chart shows this hasn't been the case at all...
Our chart displays the performance of "offense" contractors Northrop Grumman (NOC) and Lockheed Martin (LMT) over the past two years. They produce things like jet fighters, missiles, radar systems, and unmanned aerial drones. They rely almost entirely on government spending.
And as you can see, the government is still spending plenty of money on offense. Shares of both Northrop and Lockheed are up about 100% over the past two years – and nearly 80% since our first note. Last week, both stocks hit new all-time highs. Despite claims to the contrary, no cutbacks are affecting these stocks.
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