Multi Currency & Economic Fundamentals Provide Economic Warnings

by | May 22, 2010 | Archives, DO NOT USE - MC

Our study of multi currency & economic fundamentals has provided us with many economic warnings over the years.

Here are some of the facts that have led to early warnings, again and again, over decades.

More than a week before Black Friday 1987 we were able to warn readers to bail out of the market.

Since that time the systems outlined in our Borrow Low-Deposit High Report have helped readers save themselves from disaster again and again.

These warnings are well documented.

The warnings at our site on August 17, 2007 said: “Such historical measures are so inexact that we cannot predict just from them what will happen in the short term. The numbers are close enough that we could be entering the fourth sub cycle down (similar to 1976 to 1978). If so expect a sustained drop in markets for two to three years.”


Our September 21, 2007, message said: “equity markets dropped again violently last month. Now these markets have recovered again. Yet this may be a last gasp party. This drop of interest rates at a time when inflation is beginning to soar could lead to a rapidly falling US dollar. We can see from the chart here that the dollar has done almost nothing but drop for 40 years (that chart is below). Yet much more dollar dropping could be in store.”

The October 14, 2007 message stated: “Periods of high performance are followed by times of low returns. We never know for sure when an upwards cycle will stall. Fundamentals look good for a bright 2008 in emerging and equity markets, but this can change quickly so to give our readers a better perspective, this year we are reducing leverage and adding a sixth portfolio with no leverage to study”.

Oct. 15, 2007 we wrote: “Okay it’s time to turn the burner down.”

We offered a “leverage dwindling” warning on Oct. 26 that explained to readers how I had eliminated even my modest leverage, Here is a direct quote: “There is a final reason I liquidated my leverage now…to lead by example. Too many readers are thinking that the dollar short or dollar neutral Portfolios are only up 38% or 48% for the year. When one thinks that way they could be headed for trouble, so I hope investors will follow my lead and take greater care with their leverage.”

The November 8, 2007 Black Friday interim message warned about all the points above and more.

So those who used what they learned in Borrow Low-Deposit High were saved from the crash in the 2008 market that you can see in this chart from


More recently in October 2009 (the week before the Dow dropped below 10,000) our site issued a Triple Crunch warning that said… “I see three signals of caution in equity markets that could cause a market crunch”. Once again our study of frequency in the market had spotted potential for a serious drop and sure enough it did!

Again this is well documented in our archives at

Finally in 2010 seasonality warnings on April 21, 2010 ( and Economic cycle warnings May 3, 2010 ( alerted readers just before the largest one drop of the Dow in history.

On Monday May 17, 2010 we share a big economic warning: Here is the warning from our archives:   There is a strong long term head and shoulders pattern in the Dow… right now.

You can see it in this chart from


Most investors will miss this because it only becomes obvious when looking at really long term charts. This chart for example looks at the Dow from 1930 to 2010.

A head and shoulders pattern consists of a peak followed by a higher peak and then a lower peak with a break below the neckline. The neckline is drawn through the lowest points of the two intervening troughs and may slope upward or downward. A downward sloping neckline is more reliable as a signal.

This is an explanation from


In short this is a huge sell signal on the Dow and the way the market has been oscillating… I am taking this chart seriously!

How accurate was this warning?

The next Monday’s message, May 24, 2010 said:.

The chart below of the Dow from shows that…

Chart forDow Jones Industrial Average (^DJI)

last Monday’s warning was not in vain.

The news was even worse. The News at Yahoo headline said: US STOCKS SNAPSHOT-S&P futures breach market plunge lowFri May 21, 2010 7:44am EDT NEW YORK, May 21 (Reuters) – S&P 500 index June futures contracts SPc1 fell on Friday below 1,060, the lowest level hit during the still unexplained market plunge on May 6, which some analysts see as technical support level. Failing to bounce from support levels can trigger further selling.

The Dow rallied Friday… yet last week’s volatility plus all the other weak fundamentals we have been writing about mean we have to ask; are we heading for a double dip recession and another stock market disaster?

Watching the fundamentals over the years has  really helped me and our long term readers have a good feel for what economically is ahead.

This is good because spotting trouble before it arrives can create profits.

Problems create opportunity…  if you were looking ahead.

At the end of that collapse on May 20, 2010 one of our long term readers sent this note:

“Hi Gary, In case you were wondering, I *did* buy a batch of options against the DOW about a month ago as I mentioned I might be doing.  Today I cashed them out at the close for a massive chunk of cash.

The options don’t expire until tomorrow’s close, but I never trust expiration day for options (prices often go violently against you).  DOW
currently looks grossly oversold, so I’m guessing there might be a rebound for a few days.  But then the outlook looks even worse, but by
then I’ll be ready with more options!  Time to buy a new car (maybe).  cheers”

I have been told by readers, has helped many of them make millions.

I hope so as a big win is much better than a narrow escape, but the concepts contained in Borrow Low-Deposit High – have also helped readers save millions… and stepping away form markets, is at times, is MORE IMPORTANT than forging ahead.

Yet we are not market timers and the data in Borrow Low-Deposit High report I want to tell you about offers a view far more global view than just the US stock market.

American stock price movements are just one of many indicators you’ll can learn to use in a search for global investing balance that can preserve the purchasing power of your wealth.

The information in this report helps you learn how to calculate the risks and rewards of currencies, interest rates, bonds, stocks and cash so you can diversify your portfolio  in good value and attain balance in an increasingly destabilized economic world.

The first edition of Borrow Low-Deposit High was published over 20 years ago, but the  roots of this publication flow back even further… about 39 years to the Raffles Hotel in Singapore at a time when Multi Currency investing became increasingly more important.

Over these past four decades our lives have been consistently improved  as technology has allowed an expanding global economy. This has been good… materially at least, for almost everyone but, global economic changes that have come with the technology forces us as investors to  know more about which currencies are most likely to rise and fall.

“Borrow Low – Deposit High”  is the primer to help you with this type of international investing

Why be a multicurrency investor?

The answer to this question and the roots of this report began over 40 years ago. I had been traveling since 1968 throughout Asia, an investment adviser helping Asians invest in the US.

Here is my first passport. I began in Hong Kong…1968.


I entered Singapore on May 5, 1971 with a seven day visa, to May 12, 1971.


Little did I know that this was the week that would change the world.

The Raffles (the famous historic hotel) back then offered a great outdoor restaurant just next to the Long Bar (home of the Singapore Sling). There was something comfortable in the old fashioned pots of thick cut marmalade and slightly burnt toast that stood in racks of sterling silver. This elegant setting and the quiet service was an easy, wonderful way to start the day. I felt in place, relaxed and comfortable, part of an ancient tradition, the modern link in a rite that this hotel had offered for so many generations past. I sat back feeling that all was well. I felt in control and on top of that modern era.

That suddenly changed as I was about to learn a serious lesson about international currencies.

I opened the morning Straits Times and the headlines declared “U.S. Dollar Devalues”.

That comfortable era had just come to an end. International currencies were in turmoil.

That day, when the dollar devalued, money changers would not take the greenback. I couldn’t pay for my hotel. I couldn’t even pay for breakfast and I was 12,000 miles from home. Was I ever scared!

Since that day I have never trusted the US dollar or any other single currency. This has reaped rich rewards. Betting against the US dollar (as I have again and again over these four decades) has been exactly the right thing to do. As the chart below shows, the greenback has lost about 75% of its value against other major currencies.

The chart below from shows how much the US dollar has fallen for almost 40 years.


So what currencies should an investor hold?

The answer to this question is one that can create fortunes or can ruin an investor’s financial well being. Yet there is no continual correct answer.  A good currency balance continually changes!

This is why I, with the aid of Jyske Bank, I have updated this report with three goals.

#1: Help you improve creative skills for developing global investment ideas that serve specific, personal needs.

#2: Help you learn how to stick to good investment ideas and get out of bad ones.

#3: Help you understand multicurrency investing because in this latest edition of Borrow Low-Deposit High, you will see…we need this ability more than ever before.

We hope you will be able to use this course, but if not…we’ll keep sending our warnings and thoughts about values of the markets and currencies as they unfold.

The updated, latest edition of Borrow Low-Deposit High is available now. $79. This price includes the next update which will come when we view the next important economic shift.  This report comes with our 30 day money back if not satisfied guarantee.  Order here.