Pssst! Do you want to make some money trading some initials? Real easy money?
As soon as you read this "ECB QE and EU LTRO for Dummies" explanation, which would take even a dummy about two minutes to understand, you'll be set to trade some initials.
For real. I just made my subscribers 382% trading these initials. And we're not done. After closing out our 382% gain, we're in the same trade again, and we're up 180% in just a few weeks – and still going.
We're also in a conservative trade, trading the same initials mind you, and we're up 41% there.
The initials are EUO. EUO is an ETF (exchange-traded fund).
Soon, you'll be ready to make some real money…
ECB QE: The World's Biggest Economic Experiment
The ECB is the European Central Bank. It's Europe's central bank, just like the U.S. Federal Reserve is the central bank of the United States.
The EU is the European Union. The EU is a confederation of 28 European countries, a sort of wannabe United States of Europe. Of the 28 countries in the EU, 19 of them exchanged their sovereign currencies for the euro, the EU's single currency. The other nine EU member countries, though they gladly accept euros, kept their old currencies.
After the credit crisis of 2008 and the Great Recession, which devastated Europe as much as the United States, the EU and the ECB followed the U.S. government and Fed's "stimulus" plan and worked to drive interest rates down.
The ECB embarked on an LTRO program, longer-term refinancing operations. But its "stimulus" program wasn't nearly as big as what the Fed did in the United States.
While the Fed spent about $4 trillion buying U.S. Treasuries and agency mortgage-backed securities ("agency" means that those mortgage-backed securities are guaranteed by some federal agency, like Fannie Mae or Freddie Mac), the ECB spent less than half that amount on asset-backed securities and covered bonds from European banks.
The Fed's stimulus programs, which happened in three stages – the first in November 2008, the second in 2010, and the third in 2012 – became known as QE1, QE2, and QE3.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
He helped develop what has become known as the Volatility Index (VIX) - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of 10X Trader, Shah presents his legion of subscribers with the chance to earn ten times their money on trade after trade.
Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps.
Shah is a frequent guest on CNBC, Forbes, and Marketwatch, and you can catch him every week on Fox Business's "Varney & Co."
He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.