Now let’s get back to the story at hand.

In markets like this, I always have to ask myself, “Okay, money is running from most markets…but where is this money headed? Which market is actually benefiting from this sell-off?” This isn’t easy to figure out. Investors tend to panic, so it’s not always obvious to see which sector is benefiting. (If it was, every investor would be pouring their assets in that sector.)

After all, we can turn on the nightly news and find out which market is dropping (which is almost everything). But it takes a little legwork and patience to figure out which sector is about to rise.

Hint: Two of the Three Playable Trades Come
from My Favorite Market

This is one of those times when you’re rewarded for having an account to invest in foreign currencies. Here’s why. Aside from a few select health-care and bio-tech stocks…it’s almost impossible to find a stock sector that’s rallying right now in the U.S. stock market. And when I look around the globe, most foreign stock markets are selling off too.

Right now, Forex traders are also dumping most major currencies including the euro, British pound, Australian, New Zealand and Canadian dollars. Even many of the more exotic currencies like the Brazilian real and Singapore dollar are selling off.

So of course, I’ve been scouring the world for the stable markets that are actually managing to rally in this market. After looking long and hard I came up with three investment plays that give you both profit potential and safety. Two of these three are currency plays.

Today, I’m going to focus on the strongest of the three – the Japanese yen.

America’s Kiss of Death

Three secrets you must know to survive the final days of the dollar…

There are three secrets surrounding this plague that is our legal tender. Secrets
that will cause the dollar to endlessly bleed your investments. Shrink your
paycheck. And lower your entire standard of living.

And right now, I want to reveal these unspoken realities to you.

The Currency You Want in Your Corner When Markets Get Tough

In the midst of all of this market turmoil, our old friend during risky markets – the Japanese yen – is still rising. You can pair this gem with almost any currency in the world right now – especially the British pound.

Last week, the Japanese yen beat out every single one of the top 16 or so currencies. So this is the biggest place that money is running to right now.

Why is this happening? It’s not that Japan’s economy is so strong. In fact, Japan may be entering into a recession as we speak. So what’s going on? In the past, as stock markets grew strong and volatility stayed out of the markets, investors around the world bought high-yielding currencies with borrowed money in the lowest yielding currency in the world, the Japanese yen (0.5%).

Many of these currencies reaped 6-8% a year. As an investor, all you had to do was pay between zero and one half of 1% if you borrowed yen. When you add a bit of leverage to these positions, you reap even greater returns just by borrowing low and reinvesting those funds. This strategy worked for years during calm, cool and collected financial markets.

However, as we know…since about a year ago, the markets have taken a turn for the worse. We’re now in a high-risk, volatile market. That’s obviously not conducive to this type of currency investing called “carry trading.”

So as these positions are closed out (or as they say in the industry – unwound), they sell the higher yielding currency like Aussie or New Zealand dollars or like the euro or pound and have to pay back that loan of yen. When they do this, they are “buying back” yen which causes the yen to pop up.

It’s almost like a short-seller in stocks covering his short-sell by buying back the shares to close the position out.

Long story, short: As long as the turmoil lasts, the yen will prosper. Traders will continue to unwind positions as many are either margin-called or flat-out scared out of their positions.

So the moral of the story…don’t believe the Chicken Little’s out there. There’s always something going up somewhere in the world. You just have to look – and the best place to start your search is in the currency markets.

Best Regards,
Sean

P.S. As I said, the Japanese yen is just one of the several plays hiding out there in the market carnage right now. It’s our job to find these hidden plays and bring them to your doorstep. That’s exactly what my colleagues are doing in our new publication, The Currency Capitalist. In this new monthly publication, my fellow editors Jack Crooks and Chuck Butler are giving you the long-term plays you need to adjust to this market turmoil. This is a perfect opportunity for beginners to jump into the currency markets, or for long-term “buy-and-hold” stock investors to take some long-term positions in the FX market. Is this new publication for you? Find out more about this new hot-off-the-presses publication here.

It’s Official: We’re In A Bear Market — But The Next Big Profit Wave Is Taking Place RIGHT NOW!

The Dow Jones is down 20% from its October high signaling a TRUE bear market – but many smart individuals were waiting in line to grab big profits when the European Central Bank (ECB) announced their NEW (and controversial) monetary policy earlier this week.

Any investor worth his or her own salt — knows turmoil spurs opportunity.

In fact, a small group of ordinary individuals have discovered profits in a highly focused sub-niche of the currency market – that is literally driven by political and monetary uncertainty.

And recently, my currency research team compiled 12 months of statistical data to create a thoroughly documented case study of this currency sub-niche. This report outlines the exact details of how 487 BETA-testers (of an experimental program) had the opportunity to collect, on average, an extra $5,970 every 30 days following a simple 3-step formula.

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