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3 letters, 2 predictions, 1 way to profit

by , 23 January 2014

Three letters: U.S.A.

2014 is going to be the year of America.

You see, two things are about to happen that'll push the American economy back to its former glory...

And there's an easy way for you to profit along with it.

Let me explain...

Prediction #1: USA stocks will thrive in 2014
 
I believe the USA’s stock exchange, or more specifically its S&P 500 market index, will finish the year with gains of 9% to 12%.
 
Why?
 
You see, the S&P 500 is on a bull market surge. Its stock market has recovered from the financial crisis in 2008. 
 
The economy is looking healthy too. The Gross Domestic Product (GDP) recently grew to 2.8%.
 
But there’s another element in the mix this year: Tapering. 
 
The US Federal Reserve will probably continue to cut down on its bond-buying program (QE). Already it’s cut the rate at which it buys bonds by $10 billion each month. This shows how confident the US is about its economy and market.
 
Also, the Fed’s zero interest rate policy will stay intact for 2014 and possibly 2015.
 
This low cost of financing should keep the US market moving higher.
 
Finally, there are earnings. This is the strongest driver of markets. 
 
Already the banks in the US have shown their might with strong earnings, and this should set the tone for 2014. 
 
And there’s one more prediction at play…
 
Prediction #2: A powerful dollar will emerge
 
With the Fed tightening up the reins on its bond-buying program you can expect the dollar to appreciate in value. 
 
Because when the Fed cuts more and more of these purchases, it means there will be less dollars floating around. 
 
When this happens, the supply of dollars will fall. And the less there is of something, often the more valuable it becomes…
 
And that’s exactly what’ll happen to the US dollar.
 
So if the dollar were to strengthen to R12.38, it means investors in the US would get a boosted return of 13.16% in rands. And when you add this to the 12% return of the market it means they could get a stellar 25.16% return!
 
But that leaves one question…
 
So how can YOU profit from all of this?
 
Get double profits with one purchase
 
What you want to do is profit directly from the US market. 
 
You can unleash the profits from this market by buying an Exchange Traded Fund (ETF). And you want one that profits straight from the US market growing.
 
That means you need to buy the DB X-tracker MSCI USA Index ETF.
 
If you invest in this ETF, you’ll essentially profit when the top US firms grow. And it’s not just one company you can profit from. This ETF will allow you to profit from about 600 US firms.
 
So when these firms profit, and the US dollar strengthens, you’ll get double whammy profits!
 
If you want to find out more about this ETF you can visit www.etfsa.co.za.
 
Thrive in your possibilities,
 
Jonathan Bachrach
 


3 letters, 2 predictions, 1 way to profit
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