Professor 4x
4x trade school
02/28/05
Earn 17% interest
U.S. DOLLAR VULNERABLE
Dollar deficits continue to
soar and 4x markets still focused on USA’s ability to collateralize in question. The latest figures from the Fed Beget
Chairman still indicate an increase in the Federal Budget for the remainder of 2005. Now with the latest data the US Dollar
will have a record 4 levels of debt to focus on with no end in sight keeping the downside pressure on dollar for next 3-6
months.
With the Federal Deficit,
Current Account Deficit, Trade Deficit, and Personnel Consumption Deficits currently expanding the dollar cannot recover short
term. The Federal Deficit is expected to grow in 2005 to $426 billion from $412
billion, and if we are still in Iraq, costing USA over $80 billion a year, we will escalate to over $470 billion in 2006. Right now with the current position we will have higher debt and of course the Iraqi
War spending going forward will be focus on 2006.
The Current Account and Trade
Deficit have a direct correlation with the Price of Oil since the USA are NET IMPORTERS and must pay the price from the current
account and included in trade figures, Any price over $50 per brl will raise the two simultaneously. All of this couple with rising interest rates will cause the Fed to place Gross Domestic Produce into stagnation
and stall the expansion efforts which keeps further pressure on Deficits due to lack of taxation revenues because of slower
growth meaning lower tax income to govt to pay down debt.
Recently OPEC Ministers have expressed
satisfaction with the price of oil and it was the dollar weakness which cause the cut in supply so they could make up gross
margins in the first place last August.
These factors plus more create an outstanding investment
opportunity in a Carry Trade for a long term hold stripping interest of over 17% from market. This is our current recommendation
stated below to increase your wealth with a manage risk in the 4x Markets.
JAPAN
ECONOMIC WOES CONTINUE
Yen is under pressure and dollar
should maintain value via worse economic barometers than expect. Most recent
data from Japan indicate that they have slipped back into recession for 4th time in 13 years. This plus the fact
Japan’s Government has been speaking of an EXPORT LED RECOVERY and since
USA is responsible for 65% of their export purchases a strong dollar is much more feasible.
With latest data also showing deflation in the picture coupled with the fact
Japan are also Net OIL Importers meaning rising oil will add to their slower growth, the Bank of Japan cannot afford
to allow the usd/jpy to have an adverse relationship to their economic recovery.
The
IMF estimates for every $10 per barrel increase in oil it would reduce global
economic growth by about .05% in the industrialized nations.
RECOMMENDATION
LONG GBP/JPY
Entry: Market Stop: 198.25 Target: 215.00
Annual Yield: 17% Leverage:
2:1
Risk: -3.84% Reward: 44.46%
Ratio: 1 : 11.6
Lesson
Carry Trade is an Interest Rate
Strategy where by the investor takes advantage of the interest rate differential between two countries. Also are looking for he general direction of current trend targeting better than average returns and targeting
long term gains. Growth and Income philosophy stripping interest from pair and
participating in the growth or pair.
For Further Information:
Email: professor4x@hotmail.com
Website: www.pffx.com
