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High Return Investments - A Buy and Hold Strategy For Big Gains

Monday, February 25, 2008

Here we will outline a simple investment, that’s low risk and has the potential to make 30 – 50% annual gains and finally, it’s simple to understand, easy to do and requires only a low minimum investment to get started.

The US Dollar is suffering from sluggish economic growth and debt and is set to fall which has been the story for the last few years. This strategy is simply to buy and hold two currencies against the dollar – the Australian and Canadian Dollar.
Your not going to trade in and out all the time, this is a strategy for the patient trader and when this trade is entered it can be left for years.
Your buying and holding for the longer term. Before we look at the potential gains lets look at opening a currency account and taking advantage of leverage to improve profit potential

Opening an account

Today you can open one online and you only need a few hundred dollars. Most brokers will give you 100:1 leverage so if you deposit $1,000 you can trade $100,000 if you wish.
This is a buy and hold strategy and you wouldn’t want to over do leverage and 10:1 leverage would give you the chance to easily target 50% + per annum. If you look at the price rises in these currencies over the last 5 years you will see this is a realistic target

50% Per Annum Capital Growth Potential

So why should these currencies continue with their bull run against the dollar?
Quite simply there economies are in better shape and booming while the US economy is sluggish and may even slip into recession and furthermore the US dollar is more affected by world volatility and political factors than ever before.

Another major factor is the boom in commodity prices that has taken place in recent years as India and China push prices up with their ever rising demand and spectacular economic growth.

Canada and Australia are exporting commodity nations and the US is a net importer.
Commodity price rises obviously support exporting nations currencies but hurt importing nations like the US. The trend that has been in place for the last few years of dollar declines against the above currencies looks set to continue.
Although you have to careful with your timing, a simple buy and hold strategy will do well longer term and represents a great diversification from volatile stocks.

If you want a high return investment, that’s simple to understand easy to do and provides diversification then this one provides it.

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