They can only use their euro account when they go on vacation in Euroland, but then Amercian Express probably can give them a better exchange rate on the credit card charges.
Henry C.K. Liu
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| Subject: | Seeking Profits from a Falling U.S. Dollar |
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| Date: | |
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| January 23, 2003 You've probably heard: the U.S. dollar is beginning to follow the U.S. stock market south. Why? A couple of reasons: (1) Skeptical foreign investors are pulling out of U.S. financial markets. In the first quarter of 2000, the flow of foreign investment capital into the U.S. was $66 billion. By the 3rd Quarter of 2002 (the last data available), the amount of foreign investment had fallen to just $7.4 billion. (2) Attempting to avoid an even deeper recession, the U.S. government appears to now favor a soft dollar policy. That makes our products more competitive overseas. Between 2/1/02 and 1/17/03 the U.S. dollar has weakened 24% against the euro...21% against the Swiss franc, and 31% against the New Zealand dollar. The list goes on. But here's the interesting part Currency trends historically take many years to play out. Consider this broad snapshot of recent U.S. dollar trends: Weak dollar 1972
- 1978 (6 years) Since we are just 10 months into the current weak dollar trend, the best could very well be ahead. Now may be an ideal time for you to intelligently diversify into world currencies. How to Invest? Check out Everbank... Everbank, the nationwide division of First Alliance Bank, is one of the only banks in the country that offers retail-oriented FDIC-Insured‡ Deposit Accounts and Certificates of Deposit denominated in any of the world's major currencies. With clients in all 50 states, Everbank -a Forbes.com "Best of the Web" recipient for three consecutive years-is a recognized leader in providing branchless banking services to discerning clients. This could be your ticket to getting it right in 2003. HERE'S WHAT THE MEDIA SAYS. Recently, CBS MarketWatch ("Foreign-linked CDs deliver cash, yield and gains" - Jan 6, 2003) gave Everbank's innovative currency accounts extensive favorable coverage, and the Wall Street Journal gave the accounts positive mention ("Dollar's Steep Fall May Mean End of Many Bargains is Near" - Jan 9, 2003) And no wonder. In addition to offering simple U.S. dollar alternatives in the form of single currency deposit accounts and CDs, Everbank also offers innovative multi-currency Index CDs designed to meet specific investment objectives. For example, Everbank's European Currency Opportunity CD is made up of the currencies of three countries scheduled for admission into the European Union next year. It is widely anticipated that their economies will continue to improve in order to meet the EU admission standards and that, as a result, their currencies will strengthen. Since first announced to the public in January 2002, the European Opportunity CD has gained over 20% in a combination of yield and capital gains. Speaking of yield, as of January 14, 2003, a 3-month European Opportunity CD yields 5.75% APY†. But make no mistake: the real upside is if the U.S. dollar continues to weaken. The Risks? Of course, it is vital to understand the risks of any investment. If the U.S. dollar were to appreciate against a world currency you hold, you can lose money, including principal. ** In addition, while Everbank's accounts are FDIC-insured, the FDIC-insurance only covers losses due to bank insolvency, but does not cover losses due to currency fluctuations. With those caveats, however, globally diversifying your portfolio is a time-proven practice to reduce the risks of being invested in a single economy-even if that economy is the U.S. And Everbank makes it incredibly easy and cost effective to own the world's currencies. So, there's a new idea for you to consider as you try to peer through the fog of today's U.S. markets. Perhaps it's time to rise above the fog, and look overseas. It's easy to learn more - click into Everbank now and get all the details, or call them a call today at 800.926.4922. We're always willing to take the time to answer questions. Best Regards, P.S. A useful
tip: Every day our team puts out a complimentary daily e-letter for clients
entitled The Daily Pfennig that covers global currency and economic developments.
In addition to being informative, we hear it's pretty entertaining as well.
Even if you're not a client, if you email us we'll be happy to
add you to the list. While the information it contains is excellent, you
can't go wrong at the price - which is free! ‡ As a division of First Alliance Bank, your deposits with Everbank Worlds Markets are FDIC insured. The FDIC insurance only insures against losses related to bank insolvency-it does not cover any risk associated with changing currency prices. As with all investments, investors can lose money, including principal. Deposits held at Everbank are added together with deposits held at First Alliance Bank for the purposes of the $100,000 limit on the FDIC insurance coverage. |