The Multicurrency
Sandwich has been a phenomenal way to invest for over
three decades, and we are tracking four MultiCurrency
Sandwich portfolios beginning.
These four portfolios are geared for four different philosophies.
| Idea
#1 |
Those who believe the
US dollar will appreciate versus other currencies. |
| Idea
#2 |
Those who believe that
the US dollar will remain steady versus other currencies,
but could fall. |
| Idea
#3 |
Those who believe that
the US dollar will fall. |
| Idea
#4 |
Those
who believe that Asia is the place to invest.
|
One great feature of the MultiCurrency Sandwich is that
it can work for any of these ideas and more.
This message looks at the MultiCurrency Sandwich portfolio
geared for a strengthening US dollar.
US Dollar Long MultiCurrency Sandwich
Starting Date 10/21/05 $100,000 Invested & $200,000 Borrowed
$Amount
Currency Investment Price Yield % % Portfolio
$12,000 BRL 12.5% Brazil Rep 05-01-16
94.60 11.82 4%
$30,000 AUD 5.5% Landwirt Rentenbank
99.79 5.48 10%
16-04-07
$15,000 GBP 7.125% British Tel 102.79 7.32 5% 07-12-06
$15,000 HUF 6.25% Hungary Gvt. 12-6-07 99.35 6.20 5%
$30,000 ISK 0% Iceland 09-02-07 89.23 11.20 10%
$60,000 MXN 8% Mexican Fix Bonos 98.73 7.89 20%
24-12-08
$30,000 NZD 6.5% ABN Amro Bnk 99.54 6.47 10% 08-02-08
$12,000 TRY 14.5% E.I.B. 21-02-2007 102.10 14.34 4%
$30,000 USD 7.2% Ford-Global 15-06-07 98.64 7.10 10%
$15,000 USD 3.875% Deutsche Telekom 97.75 3.78 5%
22.07.08
$15,000 EUR JI High Yield Corporate Bond Fnd 110.70 5.00
5%
$36,000 US$ JI Emerging Markets Bond Fnd 242.10 7.00 12%
Total Invested $300,000
Estimated Gross Income $ 22,812 Loans in UD$ Equivilent
20.00% JPY 1.63% 40,000
80.00% CHF 2.38% 160,000 Total Loan $200,000
Total Estimated Loan Cost $4,460 Net Amount Invested $100,000
Estimated Income After Loan Cost 18,352 The profit projection for this portfolio is made before
calculating fees. Plus there are risks. Be sure to study
lesson 14 of International Currencies Made EZ (a free online
course) to understand the risks of the multicurrency sandwich. This portfolio has the potential to return 18.35% per
annum on the initial $100,000 invested, plus if those who
long for a rising dollar are correct some extra forex profit
on this portfolio that is dollar long! In addition investors who hold this type of portfolio
gain security and stability by having a diversified basked
of currencies. Until next message, may all your investments be good! Gary
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