Recently, Mr. Ted Bauman did an article in which he analyzed the effects of the recent tax cuts that were passed by the House of Representatives and how ordinary individuals can take advantage of it and make a quick buck before time runs out. The article starts with a story of how when he flew into South Africa way back in 1984 and considering the strength of the dollar back then compared to the South African Rand, Ted managed to purchase an asset which he says has really paid off for him over the years. He advises his readers to try this move because according to him time could soon be running out especially now that the House of Representatives has passed the tax cuts and this will definitely have an effect on the financial markets in turn affecting the strength of the dollar.
He goes further to reveal that while a strong dollar means that when Americans travel abroad to countries where their currencies are weaker compared to the dollar, they are treated to cheaper vacations and so on but on the other hand this means that products made and manufactured in the United States for the export markets are pricier and thus making them a hard sell especially to countries with weaker currencies when compared to the dollar. As a result, this hurts the manufacturing industry which is one of the top employers in the United States job market. On the flipside, the imports are also cheaper compared to goods manufactured in the United States which encourages some consumers to buy from the foreign markets and in turn hurting the local manufacturers and trade balance.
Ted predicts that all indications point to a relatively weaker dollar in the near future considering that it is estimated that the recent tax cuts passed by the house of representatives will likely lead to a $1.5 trillion in federal deficits. Hence the opportunity is to buy foreign assets that are priced at local currencies such that when the dollar declines, the assets will be worth more in dollars than when you bought them a concept Ted calls and “exchange-rate turbocharge.”
About Ted Bauman
For the past 4 years, Ted Bauman has been working with Banyan Hill Publishing as the editorial director and editor of The Bauman Letter, Plan B Club, and Alpha Stock Alert. He is an expert in low-risk investment and asset protection.