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How to Profit From the Currency War

If you want to know how to profit from the currency war, just look to Japan.

That's because Japan's aggressive move to cheapen the yen in order to stimulate its own economy is working.

Of course, Money Morning's Chief Investment Strategist Keith Fitz-Gerald predicted this would happen months ago, and he was dead on.

But even if you missed the first moves in this currency war, it's not too late to profit.

To hear Keith explain how investors can still take advantage of the "race to the bottom" and profit from the global currency war,

click here.

Why Your Financial Future Will Be Built Upon the Chinese Yuan

It’s the Yuan’s world, and the West is just living in it.
It’s no coincidence that Yuan-settled trade jumped 41.3% - to nearly three trillion Yuan - in 2012, after it increased by more than 300% in 2011.
In fact, since June 2005, the Chinese Yuan has risen 24.66% against the U.S. dollar, backed in part by 1.3 billion consumers and real assets. To borrow a tech term, China's currency is the world’s new “killer app.”
Here’s how you can make it part of your investing future

Is Japan About to Fire the First Shots in a 1930s Style Currency War?

The great currency risk right now is not the "race to the bottom" you hear about, but a full-blown 1930s-style currency war.
This is not front-page news yet, but I have a sneaking suspicion it will be shortly...
It's going to blindside Washington and most of Europe, where central bankers, politicians, and economists fail to recognize that events from nearly 100 years ago are now primed to repeat themselves. Worse, it will devastate an entire class of investors who have put their faith in the current economic dogma of endless bailouts and money printing.
I'll explain what happened in 1931 in a moment. But first, ironically, this currency war won't start because of international problems. Instead, it will be touched off in earnest because of domestic concerns - only not American ones.
Here are three reasons I think Japan will fire the first shots.

The Best Currencies to Invest in for 2013

The best currencies to invest in for 2013 come from Asia, South America, Australia - but not the United States.

The Federal Reserve's misguided insistence on a loose monetary policy, ongoing resistance to government spending cuts, and another increase in the U.S. debt ceiling will all conspire to boost inflationary pressures and restrain the value of the U.S. dollar.

That will, of course, impact domestic market performance and cut into real returns on dollar-denominated investments - but it will also provide major opportunities for U.S. investors who can target issues denominated in the strongest foreign currencies.

Unfortunately, that doesn't include most of the world's other major currencies - including the euro, British pound and Japanese yen - since the economies of the underlying nations are also suffering from sluggish economic recoveries and problems with excess debt.

As such, the strongest currencies in 2013 will likely be found to the north and west of the United States, starting with the neighboring Canadian dollar.

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Four of the Best Currencies to Invest in for 2012

If you had to pick one word to describe the outlook for the world's major currencies heading into 2013, it would have to be "inconclusive."

Since late May, none of the leading currencies has managed to establish a prolonged trend, with choppy action being driven by continued economic instability in Europe, a sluggish recovery in the United States and slowing growth in the Far East.

Even the Japanese yen, which has been one of the strongest currencies the past few years and held fairly steady through most of the summer choppiness, has weakened in recent days in the wake of a slowing Japanese economy and falling export business, much of the latter blamed on the strong yen.

And the indications are the world's major currencies will likely stay that range bound for the remainder of 2012. Investors can expect price movements to be driven by short-term speculative reactions to each new economic report, unexpected developments in the U.S. election campaign and the continuing failure of European bailout proposals.

So, what's a currency-conscious investor to do?...

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