Foreign Currency CDs And More, A Good Idea?

Marc Faber recently stated that his personal holdings included foreign currency. I haven’t really explored this investing island for a long time. If you are tired and stock-heavy in an internationally volatile market, perhaps foreign currency cd’s and a few other eclectic foreign currency basket cd’s are in order.

A very active market in these type of investments comes from EverBank (www.everbank.com/001Currency.aspx?LinkID=Navigation). EverBank offers WorldCurrency CDs for many countries: Australia dollar, Brazil real, British pound, Canadian dollar, Chinese renminbi, Czech korune, Danish krone, Euro, Hong Kong dollar, Hungarian forint, Icelandic krona, Indian rupee, Japanese yen, Mexican peso, New Zealand dollar, Norwegian krone, Polish zloty, Singapore dollar,South African rand, Swedish krona and Swiss Franc.

WorldCurrency cd’s are available. If diversification is an important goal with currencies, look no further.Take advantage of EverBank’s variety of single cd’s comprised of multiple currencies - each strategically designed to focus upon a specific regional strength, and/or geographic and economic development. Cds are available in such areas as commodities, new world energy, prudent central banks, geographic - the list features almost twenty of varying degrees of sectors and/or regions. Look within their web site for all the details.

For US bulls, there are DollarBull cd’s, which has the investor “borrow” money from a foreign country and benefit if the US dollar appreciates against the currency. These are available in all major currencies.

For US bears, there is the WorldCurrency Access Deposit Account, which is the correct choice if the investor seeks to diversify a financial portfolio globally against a depreciating US dollar without locking into fixed terms. This is also a smart business solution if you require a cost effective account to manage foreign currency exposure.

All in all, EverBank offers numerous effective ways to avoid the vagaries of stocks for the safety of interest-bearing cd’s with the ability to hedge against currency fluctuation using EverBank’s blanket approach of currency in varied determined scenarios.

In this market, I advise investor’s - and myself - to utilize holistic diversification beyond stocks and bonds. This creative bank may assist the average investor find interesting opportunities to make a zloty or two.

Posted in Categories: Australia, Canada, Contributor, Eurozone, External Research, Forex, Japan, New Zealand, Switzerland, UK, USA.

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Comment by jerry robinson

2008-10-13 08:33:42

Happy with Everbank….except it downloads data in Quicken only. Do you know of a software program that does a good job of keeping track of purchases of various currency CDs, including BASIS and gain and loss easy updates? Thanks. Jerry

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