FX risk hedged income, low risk forex, macro market outlook
Contributor Since 2009
Cliff Wachtel, CPA, MBA, former Chief Global Markets Analyst, Director of Market Research, New Media and Training for a number of leading online Forex and CFD brokerages. His focus includes global market drivers, forex, currency hedged and diversified income investing, and related topics like MLPs, REITS, BDCs, etc. He is also the author of The Sensible Guide To Forex , [https://www.amazon.com/Sensible-Guide-Forex-Smarter-Survive/dp/1118158075 ] a book dedicated to providing safer, simpler ways for active traders and passive long term income investors to use forex markets to limit risk of your currency being debased by central bank policies. Since the Great Financial Crisis began in 2007, Cliff was among the first financial writers to focus on stocks that provide steady, high yields currency diversification for insurance against currencies being steadily devalued. Articles focus on both top income stocks for exposure to multiple quality currencies, and safer, simpler less demanding types of longer term forex trades than commonly covered on other forex sites. He also posts a variety of articles on topics ranging from weekly strategic global market analysis, conservative forex trading, assorted special reports, currency diversified income investing, binary options, and trader training articles via multiple websites. His home sites include: globalmarkets.anyoption.com, thesensibleguidetoforex.com, caesartrade.com, globalmarkets.com, and others. Most can also be found at leading financial websites like seekingalpha.com, businessinsider.com, and forex sites like forexfactory.com and fxstreet.com. His work is regularly translated into numerous languages, including Spanish, French, Italian, Turkish and Russian, Arabic, German, and Chinese, often with his express knowledge and permission! He has appeared in a variety of offline publications including Forex Journal, and John Nyaradi’s book, Super Sectors, in which he was interviewed along with other market experts like Jim Rodgers, Dr.Marc Faber, John Mauldin, Robert Prechter, and Tom Lydon. Prior to his current positions, he was Chief Analyst at avafx.com, and a 30+ year financial market veteran as investor, trader, writer, analyst and advisor to private clients and institutions. He attended Vassar College and Cornell University, and is a certified public accountant. He’s married with 5 children and lives in Jerusalem, Israel, where he can follow Asian markets in the early morning, Europe through the workday, and the Americas at night.
Why all hell could break loose when Greece restructures of leaves the EU, advice on how to cover your assets for traders of both binary options and traditional spot market stocks, indexes, forex and commodities.GREEK RESTRUCTURE APPROACHES
Timing a potential market crisis is always hazardous, but when the German daily Der Spiegel dropped its bombshell news Friday that Greece has threatened to leave the EZ unless it gets a restructure deal, after weeks of not so subtle German hints that Greek restructure is coming, it’s time to make plans for this contingency and its ramification.BACKGROUND: THE WARNING SIGNS HAVE BEEN THERE
In addition to the now well known news:
Just last week Lars Feld, one of Angela Merkel’s most senior advisors, (and thus an assumed mouthpiece for Merkel herself) advised Greece to restructure now in order to end the uncertainty and minimize panic and contagion risk. This was the third not so subtle hint from the former anti-bailout Germans that Greece was a lost cause. In case you forgot, here are the other two:
See how much greater the web of uncertainty and potential contagion becomes? To continue, Indirect effects may include:
That’s actually good news because crises are wonderful for focusing politicians and keeping otherwise unpredictable political decisions ultimately rational. For example last spring the EU and IMF quickly found the needed funds to stabilize the situation – but only after all other alternatives were exhausted.
Thus far 2011 suggests they’ve learned from last year and could well yet save the day. The question is, in 2011, will they manage to avoid a market panic? Lehman brothers was just one large bank. Now, we have tens of potential such banks, in addition to multiple sovereign states on the brink of insolvency.How to Cover Your Assets
In the event of another panic, the short term ramifications are likely to include:
Lots of money printing…er…stimulus, in much of the developed world to provide the needed cash for bailouts –either of sovereign nations to prevent defaults, or to support the TBTF banks taking the hits from the bad bonds they hold
What are the likely ramifications of that money printing? Two scenarios:
DISCLOSURE & DISCLAIMER: THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY AND NOT TO BE CONSTRUED AS SPECIFIC TRADING ADVICE. RESPONSIBILITY FOR TRADE DECISIONS IS SOLELY WITH THE READER.