by Chuck Butler and the World Currency Watch Research Team

Currency Capitalist 98 S.E. 6th Avenue, Suite 2, Delray Beach, FL 33483 USA USA Toll Free Tel: 800-818-6934 Email: info@currencycapitalist.com Web site: www.worldcurrencywatch.com Copyright 2009 by Currency Capitalist. All international and domestic rights reserved. No part of this publication may be reproduced in any form, printed or electronic, without prior written permission from the publisher, Currency Capitalist. Notice: This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold and distributed with the understanding that the authors, publisher and sellers are not engaged in rendering legal, accounting or other professional advice or service. If legal or other expert assistance is required, the services of a competent professional advisor should be sought. The information and recommendations contained in this brochure have been compiled from sources considered reliable. Employees, officers, and directors of Currency Capitalist do not receive fees or commissions for any recommendations of services or products in this brochure. Investment and other recommendations carry inherent risks. As no investment recommendation can be guaranteed, Currency Capitalist takes no responsibility for any loss or inconvenience if one chooses to accept them. Any information or statements contained in this publication are not to be considered by the reader as personalized investment advice. The authors and any agents of Currency Capitalist are not licensed under U.S. or other securities laws to address particular investment situations and nothing herein should be deemed as personalized investment advice.

Currencies to Secure Your Retirement:

Simple, Safe and FDIC-Insured Deposits You Can Add To Your IRA If youre like most Americans, then youve probably never heard of a Foreign Currency CD. But this radical new investment vehicle is one of the best ways to shield your retirement plan, beat inflation and profit as the dollar falls, all at the same time. So without further delay, welcome to the world of Foreign Currency CDs (Certificates of Deposit), arguably one of the lowest risk-for-return investments in our turbulent economy. In the next 15 minutes, youll find out exactly how these long-term investments work, learn all the advantages of diversifying your retirement plan with foreign currencies, and most importantly youll learn how you can get started investing in these CDs today. But first, lets explore some of the more traditional alternatives you can choose for your retirement portfolio and look at how theyre currently fairing in the marketplace. No Shelter for Your So-Called Safe Investments Lets face facts. Its not exactly a popular year to plan your retirement. Were all a little too distracted by the short-term misery were seeing in the markets. The Dow has dropped over 6,000 points (40%) since October 2007. Inflation is expected to soar faster than it has in the last 17 years. And our governments bad habit of printing new dollars and slashing interest rates is having a serious impact on your long-term savings. In the words of Bankrates Greg McBride, Savings are taking it on the chin. The Feds rate cuts geared to aid ailing homeowners with adjustable-rate mortgages have come at the expense of savers and retirees dependent on fixed income. And this isnt just a short-term problem. John K. Castle, a columnist for BusinessWeek cites several other indicators including the rapidly rising price of commodities and manufacturing as reasons to believe that well likely be facing annual inflation in the 5%-6% range for the next few years. Assuming your CDs, bonds and money-market accounts pay the standard 1% to 2%, this means youll actually be losing money over the next ten to 15 yearsmaybe even longer. Let me explain 1

The Hidden Tax of Inflation Plunders Your Savings

As you can see in the chart above, the average monthly return on a CD is currently at 3%, while inflation is up in the 6% range. So rather than building money for your retirement, youre actually losing 3% of your long-term so-called safe money each year. And of course, as inflation rises, it also robs your dollar of its purchasing power. This means that in the long-term, even if you find an investment that beats inflation, youre still ultimately saving less if you factor in currency depreciation. And dont even think about the possibility of deflation. The Federal Reserve has shown its quite willing to throw in everything even the kitchen sink to prevent that from happening. This all begs the question: If CDs and bonds those time-honored, FDIC-insured safe investments cant save your retirement plan, then what can? And more importantly, how do you cope with the falling dollar, when all your retirement assets are based in dollars? Some would say the best way to offset losses during the dollars hasty retreat is to start trading in the forex markets. But you cant directly invest your retirement plan in any forex trading account, like you can invest directly in a bond or CD. So this strategy is not necessarily suitable for the longterm. Plus, even if youre not saving for the long-haul, the forex market holds other challenges. If youre not used to the currency markets, it can be difficult to know what to buy. Moreover, Forex portfolios like almost every other type of investment lack the security of FDIC insurance. Weve found a unique alternative that brings you the best of two worlds: the Foreign Currency CD. It combines the insured security of the traditional dollar-based CD with the radical new profitability of the foreign exchange:. Your Introduction to the Foreign Currency CD Just a few short years ago, if you wanted to invest in foreign currencies without any leverage you had to open up a foreign bank account. It was a good option if you wanted investment diversification. But unfortunately, your money was half a world away. But now you can buy and hold foreign currencies right here in the good old U.S. of A. without leverage. EverBank, a U.S. based award-winning institution, is taking that development one step further.
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For the last several years, it has specialized in CDs denominated in many foreign currencies. In a moment, well reveal four of our favorite EverBank currency CDs (and why they are set to profit handsomely as the dollar continues it precipitous slide.) Aside from the fact that they invest in stronger foreign currencies, these CDs are very similar to your dollar-based CDs. You can invest in anything from the euro to the New Zealand dollar to the Brazilian real. In fact, you will find that EverBank offers over 20 currencies to choose from. Foreign Currency CDs are among the easiest and most basic ways to invest in currencies. Plus, you have the potential to make a serious profit. Its as easy as holding U.S. dollars in your bank account, except instead of those rapidly weakening bills, youll have the profit potential of currencies from around the world. Most Foreign Currency CDs last for about three months, so it is important to remember that you will not be able to remove your assets until that time period has ended. Do not invest more then you can afford to put aside for that period of time. Best of all, you can hold them right in your IRA. The Easiest Way to Profit in the Next Decade of Inflation Foreign Currency CDs are one of the most popular options for the beginner currency investor. They offer slow and steady gains, so they are perfect for buy and hold investors. They also allow you the time to learn about the markets while still being involved. Or if youd rather, just sit back and wait, carrying on with your busy life. Once you are comfortable holding one CD and you will be after a very short period of time the best way to maximize your profit when investing in Foreign Currency CDs is through a CD portfolio. A CD portfolio is a package of multiple, related CDs that the bank holds in a portfolio for you. With a carefully structured CD portfolio, youll be safe from the long-term risks of holding any one currency. Yet again, the U.S. is behind the trend in foreign currency investing. While these trades have been going on for years in other countries, very few banks in the U.S. currently offer Foreign Currency CDs. But once you find the right bank, youll also find that investing in and managing these CDs couldnt be easier. All you need to do is: Call the bank Tell them which currencies you want to put in your CD and the respective amounts Apply and fund your CD And forget about them until the CD comes to term

You can park your cash on deposit and denominate it in the currency of your choice. Or, you can park your cash in a basket of currencies. All you need is a bank account that offers multiple-currency deposits. And you can rest easy at night, knowing that your investment is FDIC-insured, so each CD in your portfolio is protected up to $100,000 (or $250,000 if its in your retirement account) in the highly unlikely event of a bank failure.
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Twice the Opportunity of a Traditional CD As youve seen, these CDs are almost identical to traditional dollar-based CDs, except for the fact that theyre denominated in a different currency. That simple difference opens up a world of profit for this low-risk investment. It allows you to profit from currency appreciation, while still being guaranteed a baseline return. Few other investments can claim the same kind of profit potential with such minimal risk. The Real Nearly Doubled in four Short Years

As an example, take a look at the graph above. It shows the exchange rate of the Brazilian real to the dollar over the course of the last five years. As you can clearly see, there was an enormous potential for profit throughout most of that period. In fact, if you invested in the real in January of 07 and cashed in January of 08, you wouldve cleared a tidy 21% profit. Not bad when you consider that a Foreign Currency CD wouldve also produced a return on interest (and been insured by the FDIC the entire time you held it). Whats more, the nature of exchange rate fluctuations is very compatible with this long-term strategy. Heres how. If you look back to the graph of the Brazilian real vs. the dollar, youll notice that it demonstrates one of the key characteristics of exchange rates: They have a tendency to trend in the long-term. From 2004 through 2008, the trend was positive. In late 2008, a flight to the dollar took the real down considerably, but we expect the dollar to continue falling when market fundamentals return. And when the dollar resumes its bear move, a currency like the real should resume its upward trendThat trending makes them a great fit for your long-term investments and makes it possible for you to hold them for three to 12 months. If you sense a long-term change in the trend, youll generally have more than enough time to sell your CD before the markets make any dramatic moves. But What about the Unexpected? While these investments are very low-risk, theyre not quite risk-free. What if the exchange rate falters while youre still holding the CD? Well, you could end up taking a loss of principle on your deposit.
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The Euro Rose 50% Against the Dollar

This chart shows the exchange rate of the euro to the dollar over the last five years. As you can see, the drop in value since late 2008 represents a considerable amount of the gains that the euro has made over the dollar in the last three years but the dollars strength cant keep other currencies down forever. For a long-term CD holder, short-term fluctuations may, in most cases, be absorbed by your longterm gains from appreciation. The interest rate on the CD could also serve to offset these losses so that you can still profit. But even when the dollars value is going down the drain, there is always a slight risk that your target currency could depreciate in value and you could lose some portion of your principle. In just a moment, Im going to show you one of the methods used by FOREX traders to minimize this risk. But first, since weve already talked about the potential downside, I want to tell you about my favorite part of the Foreign Currency CD: the interest rates. The Icing on the Cake Best of all, several of these CDs earn twice the interest of a typical U.S. dollar-based CD. Thats right, regardless of exchange rates you could actually stand to double your profits on interest alone. In fact, one of these CDs returned 18.5% in 2007. How many investments can boast that for the past year? Not many, thats for sure. So if you want to profit by getting away from the falling dollar OR you have a long-term view on a foreign currency but dont want to trade or leverage, then Foreign Currency CDs could be your best investment option. The Best way to Invest in the Top 3 Commodity Currencies Set to Soar Against the Dollar One of the safest and best bets you can make against the dollar today is by investing in the longterm prospects of the Brazilian Real.
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Brazil is in the throes of a sweeping industrial, agricultural and technological transformation. It is fast becoming a leader in not just energy, but in agriculture, outsourcing, infotech and telecommunications. Annual Foreign Direct Investment is exploding. In the past decade FDI has gone from next to nothing to tens of billions of dollars a year According to Goldman Sachs, its GDP is projected to soar a staggering 10-fold in the next 40 years! Despite the global financial crisis, Brazils GDP continued to expand by 5.1% in 2008. The country is currently the fourth-biggest emerging mega-market on the planet. Brazil is also: An Emerging Energy Superpower. The recent discoveries of the Carioca and Tupi oil fields off the coast of Brazil may soon triple the nations oil reserve to 33 billion barrels making Brazil the third largest oil reserve on the planet! These fields also support massive gas wells too! But not only is Brazil a leader in fossil fuels it is also hands down the global leader in alternative energy. Around 50% of Brazils vehicles are powered by domestically-produced bioethanol made from sugar cane. As the world wheezes under the weight of peak oil, Brazil is set to speed ahead. An Agricultural Superpower. About a third of Brazils economy is linked to agriculture. Its the worlds largest exporter of coffee, sugar, cattle, orange juice, and has just surpassed the U.S. as the biggest exporter of soybeans. The rain forests of the Amazon River basin produce timber, rubber, and other forest products such as Brazilian nuts and pharmaceutical plants. With food demand (and scarcity) on the rise, Brazil is set to harvest big profits in the coming race to feed the world. A Commodity Superpower. Brazil is also rich in other commodities whose values are set to ignite as global stimulus packages kick in, including iron ore, chrome ore, copper, manganese, diamonds, gem stones, gold, nickel, tin, bauxite, uranium, platinum, and zinc.

Cash-Rich! Unlike the cash-strapped industrialized west, Brazil is swimming in surpluses. It boasts over $200 billion in cash reserves. But not only that, while mortgage markets in the US and England reached staggering sums equivalent to as much as 65% and 73% of the countrys GDP, this countrys mortgage to GDP ratio reached only a humble 2%. In other words, the real estate boom hasnt even begun here yet. In fact, due to its low credit risk, Brazils bonds were raised to investment grade in 2008, opening the doors for hedge and mutual funds around the globe to buy Brazils bonds, which (unlike Americas) are some of the most stable in the world. With the combination of Brazils massive commodity reserves and favorable economic conditions we believe its currency should rise to a stunning degree against the dollar in the years to come. In a moment well reveal one of the safest and easiest way to ride the long-term bull market in the Brazilian Real. But before we do, there are two other commodity currencies that should follow a similar trajectory to the Brazilian Real. They are: 1. The Australian Dollar Australia is the worlds third largest producer of gold and one of the largest suppliers of ores, minerals and energy to Japan, China, the United States and South
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Korea. The state of Western Australia (one of the largest gold-producing regions on Earth) recently gave each of its citizens a prosperity bonus! And while derivatives (that financial plutonium that keeps rocking Wall St.) will take years to unwind out of the American financial system, Australia has already purged its banks and markets of these financial weapons of mass destruction. 2. The New Zealand Dollar What Australia is to hard commodities, New Zealand is to agriculture. This island nation of just 4.2 million people is one of the leading producers of wheat, barley, potatoes, fruits, vegetables, wool, beef, dairy products and fish in the Southern hemisphere. Today, New Zealand ranks in among the top agricultural suppliers to Australia, China, Japan, America, Germany and Singapore. There are now an array of novel and ultra-safe interest-bearing foreign currency CDs that allows you to invest in the long-term bull markets of these sure-fire currencies. For example, theres a Kiplingers and Forbes award-winning bank that has created a whole host of interest-bearing foreign currency CDs. This bank is EverBank, and its portfolio of foreign currency and non-U.S. dollar-denominated products is one of the best that youll find on homeland soil Whats more, its currency CDs are as easy to buy as it is to buy books at Amazon.com. In fact, Forbes.com awarded EverBanks Online Financial Center the Best of the Web 5 consecutive times an honor achieved by few other banks. And thats just one of the reasons why were recommending that you purchase EverBanks Brazilian Real, Australian dollar and New Zealand dollar currency CDs today. You can find EverBank at: www.everbank.com/campaigns/portfolios. EverBanks CDs, however, do not have minimums as low as currency ETFs (of which minimums can start around $32). To open an EverBank foreign CD youll need $10,000. But what makes these currency investments so attractive is that not only you get to directly own these currencies, but you also have some protection. Due to legislation that was passed just recently, these unique CDs are now FDIC insured up to $250,000 dollars until the end of 2013! FDIC insurance was supposed to drop back down to the $150,000 limit at the end of 2009 but the deadline was recently extended. You will NOT get this type of protection from any currency ETF. These are just a few of the reasons why these CDs offer one of the safest and easiest ways to profit during the dollars last days To find out more about these ultra-safe CDs you can call our Currency Capitalist support team at 1-800-818-6934 or email them at info@currencycapitalist.com. Likewise, you can call EverBank on 1 (800) 926-4922. But Why Stop There? If youre already diversifying your holdings away from the dollar to protect yourself from the risk of rising inflation, why stop at just one new currency? Forex traders often use multiple currencies to hedge the risk of loss, and you can too. In fact, EverBank has put together a few products specifically for this kind of investment strategy.
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The EverBank Asian Currency Portfolio and All-Weather Portfolio are both well-suited to replace your flailing dollar-based CDs with returns on interest and potential currency appreciation. They allow you to begin diversifying your holdings, along with a few other added benefits. If you purchased all these currencies separately at EverBank, building your own Asian Currency Portfolio would cost you $45,000. However, EverBank is offering this portfolio as a single product, so youll be able to get started for as little as $10,000. You can find EverBanks Asian Currency Portfolio online at: http://www.everbank.com/campaigns/portfolios/AsianCurrency.htm. Everbanks All-Weather Portfolio contains some of the most stable currencies from around the world, including the Canadian dollar, the Euro, the Swiss franc, Japanese yen and the Chinese renminbi. If youre interested in currency investments but afraid of the depreciation scenario mentioned above, the All-Weather Portfolio is probably your best bet. You can find EverBanks All-Weather Portfolio online at: http://www.everbank.com/campaigns/portfolios/AllWeather.htm. To get in touch with EverBanks World Markets Desk and find out what kind of Foreign Currency CD best fits your needs, you can call them at 1-800-926-4922 or send an email over to worldmarkets@everbank.com. Be a Wise Retirement Investor Make no mistake. These rough times are probably here to stay. Benn Steil of the Wall Street Journal even goes so far to say that the Feds actions have probably killed the last great hope for a sound, durable global fiat money system inflation targeting. While that statement might be a bit of an exaggeration, one thing is for certain: The dollars days as the worlds monolithic reserve currency are coming to a close. In the near future, investment strategies like Foreign Currency diversification will become a necessity for any investor looking for long-term stable growth. But few comparable strategies exist today. And you would be hard-pressed to find one as compatible with your current situation as the Foreign Currency CD. By combining the benefits and security of the traditional CD with the profit potential of todays foreign exchange, the Foreign Currency CD shields you from the risks of inflation and bank failure while maintaining a serious upside. Combine all of these benefits with the ability to hold these CDs in your IRA like a traditional CD and youve found the kind of strategy that makes the difference between a retirement investor and a wise retirement investor. About the author: Chuck Butler, President of EverBank World Markets, oversees the trading desk and operations for over 50,000 individual and corporate clients, both in the United States and abroad. He is a frequent contributor to FX University Daily and an editor of Currency Capitalist. He is also the author
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of the widely distributed newsletter on currencies and economies, A Pfennig For Your Thoughts. With over 20 years of experience Chuck is a frequently quoted and respected analyst of the currency market. Since 2003, hes been featured in the Wall Street Journal, U.S. News and World Report, Market Watch, USA Today, CNN, and the Chicago Tribune. He has written the foreword for Demise of the Dollar.