Currencies

Currencies by David Disraeli

One of the best forms of diversification on the planet at the moment is foreign currencies, more specifically a basket of them. What if I told you that your could get FDIC insurance buying a CD denominated in one of 20 different currencies?

Think about it. Almost everything you own is tied to the U.S. dollar which is heading for a fall.

Here is a list of what you can invest in via FDIC insured accounts at Everbank:

Australian dollar»	•	•	•
Brazilian real»	•	•
British pound»	•	•	•
Canadian dollar»	•	•	•
Chinese renminbi»			•
Czech koruna»	•	•	•
Danish krone»	•	•	•
Euro»	•	•	•
Hong Kong dollar»	•	•	•
Hungarian forint»		•
Indian rupee»	•
Japanese yen»	•	•	•
Mexican peso»	•	•	•
New Zealand dollar»	•	•	•
Norwegian krone»	•	•	•
Polish zloty»		•
Singapore dollar»	•	•	•
South African rand»	•	•	•
Swedish krona»	•	•	•
Swiss franc»	•	•	•

Here are a few charts worth reviewing. First, let’ss look at the Euro:

As you can see from this chart, the Euro has not gained ground against the dollar over the last two years. This chart is an ETF (exchange traded fund) of the Euro. It can be accessed using symbol FXE.

The Yen tells a different story:

The Japanese Yen is considered one of, if not the most stable currency in the world. This chart shows a 20% gain over two years and may be accessed using symbol FXY.

You can in fact purchase an entire portfolio of currencies using ETF’s for long term protection against the dollar. A good site to search for ETF’s is http://etf.stock-encyclopedia.com/category/currency-etfs.html