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Dear iTulip Readers,
I've received several emails from readers asking, more or less, "Why is iTulip selling Crooks on Currencies? The ad for this service reads like a get-rich-quick scheme, not exactly in keeping with iTulip's editorial philosophy. Has iTulip sold out?"
The answer is that while the ad is a bit over-the-top by iTulip standards, the Sovereign Society's Crooks on Currencies service is not. Five pieces of relevant background.
First, yes, I'm a paid subscriber.
Second, no, this is not a service that's pushing risky, leveraged FX accounts. On that point, the article below appeared in yesterday's Wall Street Journal.
The article goes on to talk about new online brokerage services, such as Interbank FX, that provides accounts for currency trading using leverage, just like "...billionaires, giant corporations and governments do."
The gist of the report is that currency trading happens outside the purview of the SEC. Unlike stock trading accounts where the ratio of margin to capital are limited to a maximum ratio of 2-to1by law, these new currency–foreign exchange or "FX"–online brokerages give individuals accounts with plenty of rope to hang themselves. Some allow leverage of as much as 400 times investor's capital in an account. As a result, a lot of novice currency day traders are losing their shirts, ala tech stock bubble. One statistic says it all: the average life of an online FX brokerage account? Forty five days.
The article concludes that investors who are interested in trading currencies safely can do so by, "...simply buying exchange-traded funds [currency ETF's] that track currency moves."
Currency ETF's, and how and when to invest in them, are what Crooks on Currencies is about, versus using leverage to make short term FX bets. As much as the ad reads like a get-rich-quick offer, it's more about getting rich slowly in a relatively safe way.
Third, iTulip has been talking about an eventual correction in the dollar since 1998. There will be other currency shifts, too, when the imbalances between the export/saving trading block and the import/consumption trading block correct, such as in the ruble and Canadian dollar. I have not come out and made any predictions as to what, when or how, as I have on the stock market bubble, housing bubble, and gold. I am not qualified to give an opinion on currencies. Crooks is.
You may know of John (Jack) Ross Crooks Jr. as President and Chief Trading Officer of the independent minded currency advisory firm with the catchy name Black Swan Capital. For years, Jack's macro-economic analysis has been as contrarian and accurate as any I know.
Forth, I call to your attention an article posted by our own jk last week:
Fifth and finally, I call attention to this television report below on the new administration in Japan, elected on a platform of providing the nation's first post WWII generation leadership. The new administration in Japan is run by the generation born after WWII, a generation that does not feel indebted to the US, is not afraid to push for changes to Japan's constitution to allow Japan to build a military to defend itself versus counting on the US for protection, and is more interested in focusing on its relationship with China as their engine of future economic growth than with the US. That means getting Japan to buy US bonds to pay for US military protection from hostile neighbors and fund US consumption is about to get a lot harder. An unwinding of the "vendor financing" that started in 1971 when the US began to borrow heavily from export-driven economies, such as Japan, to fund current consumption–versus using the money to make economically productive investments–is now in play.
The primary mission of Crooks on Currencies is two-fold: to capture above average returns by investing in trends and speculating on special situations in the currency market, utilizing currency ETF's, and to protect purchasing power and increase yield on cash deposits utilizing a multi-currency deposit account.
At the core of Crooks on Currencies' mission is to provide timely and actionable recommendations to help subscribers consistently profit by positioning for trends and special situations over the intermediate- and long-term as they develop in the currency market.
If you have an interest in currency ETF's, Crooks on Currencies is a service that may fit your needs. As always, consult a professional investment advisor before making specific investments, full disclaimer here.
Sincerely,
Eric Janszen
Founder & President
iTulip, Inc.
Copyright © iTulip, Inc. 1998 - 2006 All Rights Reserved
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Nothing appearing on this website should be considered a recommendation to buy or to sell any security or related financial instrument. iTulip, Inc. is not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. Full Disclaimer
I've received several emails from readers asking, more or less, "Why is iTulip selling Crooks on Currencies? The ad for this service reads like a get-rich-quick scheme, not exactly in keeping with iTulip's editorial philosophy. Has iTulip sold out?"
The answer is that while the ad is a bit over-the-top by iTulip standards, the Sovereign Society's Crooks on Currencies service is not. Five pieces of relevant background.
First, yes, I'm a paid subscriber.
Second, no, this is not a service that's pushing risky, leveraged FX accounts. On that point, the article below appeared in yesterday's Wall Street Journal.
A Risky Money Game
October 28, 2006 (Karen Richardson and Peter A. McKay - Wall Street Journal)
Currency Trading Spreads to the Little Guy; How Leverage Leaves Investors Teetering
American investors are increasingly playing one of the riskiest games in the money business: buying and selling actual money.
Traditionally, currency trading was the reserve of global power brokers -- giant corporations, billionaires, and governments themselves. Now an array of online brokerage firms are bringing the little guy to the table with free demo accounts and online training classes designed for the novice. One provider, Interbank FX, even offers a training-wheel "Mini Account" that lets investors practice with bets as little as 50 cents.
October 28, 2006 (Karen Richardson and Peter A. McKay - Wall Street Journal)
Currency Trading Spreads to the Little Guy; How Leverage Leaves Investors Teetering
American investors are increasingly playing one of the riskiest games in the money business: buying and selling actual money.
Traditionally, currency trading was the reserve of global power brokers -- giant corporations, billionaires, and governments themselves. Now an array of online brokerage firms are bringing the little guy to the table with free demo accounts and online training classes designed for the novice. One provider, Interbank FX, even offers a training-wheel "Mini Account" that lets investors practice with bets as little as 50 cents.
>> Discount WSJ online subscription wallstreetjournaloffer <<
The article goes on to talk about new online brokerage services, such as Interbank FX, that provides accounts for currency trading using leverage, just like "...billionaires, giant corporations and governments do."
The gist of the report is that currency trading happens outside the purview of the SEC. Unlike stock trading accounts where the ratio of margin to capital are limited to a maximum ratio of 2-to1by law, these new currency–foreign exchange or "FX"–online brokerages give individuals accounts with plenty of rope to hang themselves. Some allow leverage of as much as 400 times investor's capital in an account. As a result, a lot of novice currency day traders are losing their shirts, ala tech stock bubble. One statistic says it all: the average life of an online FX brokerage account? Forty five days.
The article concludes that investors who are interested in trading currencies safely can do so by, "...simply buying exchange-traded funds [currency ETF's] that track currency moves."
Currency ETF's, and how and when to invest in them, are what Crooks on Currencies is about, versus using leverage to make short term FX bets. As much as the ad reads like a get-rich-quick offer, it's more about getting rich slowly in a relatively safe way.
Third, iTulip has been talking about an eventual correction in the dollar since 1998. There will be other currency shifts, too, when the imbalances between the export/saving trading block and the import/consumption trading block correct, such as in the ruble and Canadian dollar. I have not come out and made any predictions as to what, when or how, as I have on the stock market bubble, housing bubble, and gold. I am not qualified to give an opinion on currencies. Crooks is.
You may know of John (Jack) Ross Crooks Jr. as President and Chief Trading Officer of the independent minded currency advisory firm with the catchy name Black Swan Capital. For years, Jack's macro-economic analysis has been as contrarian and accurate as any I know.
Forth, I call to your attention an article posted by our own jk last week:
Costello seeks orderly $US withdrawal
October 18, 2006 (John Garnaut - International Herald Tribune)
TREASURER Peter Costello has called on East Asia's central bankers to "telegraph" their intentions to diversify out of American investments and ensure an orderly adjustment.
Central banks in China, Japan, Taiwan, South Korea and Hong Kong have channelled immense foreign reserves into American government bonds, helping to prop up the US dollar and hold down American interest rates.
Buy on rumor, sell on fact is the traders' wisdom. By the time we're reading about an event in the paper, the opportunity to make money from it has past. Will there by an orderly US capital "diversification"? Crooks on Currencies keeps us appraised.October 18, 2006 (John Garnaut - International Herald Tribune)
TREASURER Peter Costello has called on East Asia's central bankers to "telegraph" their intentions to diversify out of American investments and ensure an orderly adjustment.
Central banks in China, Japan, Taiwan, South Korea and Hong Kong have channelled immense foreign reserves into American government bonds, helping to prop up the US dollar and hold down American interest rates.
Fifth and finally, I call attention to this television report below on the new administration in Japan, elected on a platform of providing the nation's first post WWII generation leadership. The new administration in Japan is run by the generation born after WWII, a generation that does not feel indebted to the US, is not afraid to push for changes to Japan's constitution to allow Japan to build a military to defend itself versus counting on the US for protection, and is more interested in focusing on its relationship with China as their engine of future economic growth than with the US. That means getting Japan to buy US bonds to pay for US military protection from hostile neighbors and fund US consumption is about to get a lot harder. An unwinding of the "vendor financing" that started in 1971 when the US began to borrow heavily from export-driven economies, such as Japan, to fund current consumption–versus using the money to make economically productive investments–is now in play.
japanhawkswin
The primary mission of Crooks on Currencies is two-fold: to capture above average returns by investing in trends and speculating on special situations in the currency market, utilizing currency ETF's, and to protect purchasing power and increase yield on cash deposits utilizing a multi-currency deposit account.
At the core of Crooks on Currencies' mission is to provide timely and actionable recommendations to help subscribers consistently profit by positioning for trends and special situations over the intermediate- and long-term as they develop in the currency market.
If you have an interest in currency ETF's, Crooks on Currencies is a service that may fit your needs. As always, consult a professional investment advisor before making specific investments, full disclaimer here.
Sincerely,
Eric Janszen
Founder & President
iTulip, Inc.
Copyright © iTulip, Inc. 1998 - 2006 All Rights Reserved
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Nothing appearing on this website should be considered a recommendation to buy or to sell any security or related financial instrument. iTulip, Inc. is not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. Full Disclaimer
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