Please Enable Images To See This
What a Big Mac Tells Us About World Currencies Today
By Dr. Steve Sjuggerud
Monday, March 13, 2017
The big opportunities in currencies happen at extremes…

That's the moment that you want to consider trading them.

I don't trade currencies that often. But when these extremes materialize, I get in.

We haven't seen many currency extremes lately. But we are about to…

----------Recommended Links---------
[VIDEO] Meet the Most Successful Stansberry Readers
$50k on a single trade... $600k in profits... or 87% gains PER YEAR for 10 straight years... all thanks to one breakthrough strategy.  See it here.
Why 2017 Could Offer a Rare 'Second Chance' to Get Rich in the Stock Market
Imagine waking up to find the size of your retirement account has doubled... all thanks to a small $500 investment. It sounds impossible... But this sort of thing has happened before. Could it happen again? Click here for the full story.
---------------------------------

The U.S. dollar has gained roughly 25% in three years against the world's major currencies.

Said another way, the world's major currencies have lost a heck of a lot of ground against the U.S. dollar – in just three years.

Finally, we are approaching extreme levels. We are reaching the point where we will look to get some money outside the U.S. dollar again.

But where are the extremes?

The United Kingdom and Mexico are the obvious choices. Let's look at the U.K. first…

The British pound has fallen from 1.70 (in 2014) to 1.20 versus the U.S. dollar since the people of Britain voted to leave the European Union.

The fall has been terrible… For the last 30 years, the British pound had always rallied whenever it dropped to around 1.40. But not this time. Take a look:


The pound is the cheapest it has been in 30 years, relative to the dollar.

And that's not just on the exchange rate. England is CHEAP right now…

Historically, a trip to merry old England was expensive for Americans – everything cost more than it did back home. But now the situation is the opposite.

This next chart shows a simple example… It's the cost of a McDonald's Big Mac in England versus the cost of one in the U.S. (I use this as a quick-and-dirty way to size up the relative values of currencies.)


From 1999 to 2007, a Big Mac in Britain was dramatically more expensive than one in the U.S. Now it's the opposite – to a record extreme.

In my investing lifetime, I've never been able to buy into Britain this cheap.

I'm not rating the British pound a "buy" yet, because the downtrend is still in place. But I am close.

The story in Mexico is similar…

The Mexico peso is the cheapest it has been in decades.

Thanks in part to Trump's rhetoric, the decline in the Mexican peso has accelerated. A Big Mac in Mexico is 56% cheaper than one in the U.S. That's the record-cheapest value for the Mexican peso in two decades' worth of data. Take a look:


I am not buying the British pound or the Mexican peso just yet…

If you're a longtime reader, you know why – I want to wait for the uptrend to confirm this idea before I get into it.

But I will get in. These are multi-decade lows. This is an exceptional moment.

We will take advantage of it… Just not yet.

Put the British pound and the Mexican peso on your radar. When the uptrend returns, consider buying British and Mexican investments.

Good investing,

Steve
Further Reading:

Catch up on more of Steve's latest ideas here...
 
"The computers behind my high-priced True Wealth Systems service are signaling now is the time to buy."
 
"Everything has gone up... Nothing is cheap anymore... right? My friend, you are not looking hard enough..."
 
"After a month of terrible underperformance, gold stocks are a little bit less loved..."
  Email Story       Print


NEW HIGHS OF NOTE LAST WEEK
 
3M (MMM)... manufacturing
Fastenal (FAST)... tools
Lennar (LEN)... homebuilder
PulteGroup (PHM)... homebuilder
Toll Brothers (TOL)... homebuilder
Madison Square Garden (MSG)... sports and entertainment
Camping World (CWH)... recreational vehicles
National Beverage (FIZZ)... soft drinks
Panera Bread (PNRA)... restaurants
Activision Blizzard (ATVI)... video games
Electronic Arts (EA)... video games
Sinclair Broadcast (SBGI)... TV stations
Facebook (FB)... social media
Priceline (PCLN)... online travel
Global Payments (GPN)... digital payments
Symantec (SYMC)... security software
TransUnion (TRU)... credit reports
Visa (V)... credit cards
Citigroup (C)... banks
Morgan Stanley (MS)... financial services
Cigna (CI)... health insurance
Humana (HUM)... health insurance
UnitedHealth (UNH)... health insurance
Johnson & Johnson (JNJ)... health care products
Eli Lilly (LLY)... pharmaceuticals
Baxter (BAX)... medical devices

NEW LOWS OF NOTE LAST WEEK
 
GGP (GGP)... dying malls
Simon Property (SPG)... dying malls
Target (TGT)... discount retailer
Barnes & Noble (BKS)... book retailer
Bed Bath & Beyond (BBBY)... home-goods retailer
Mattel (MAT)... toys
GoPro (GPRO)... personal cameras
Rite Aid (RAD)... drugstores
Sprouts Farmers Market (SFM)... organic groceries
ExxonMobil (XOM)... oil and gas

Why you must understand currency risk when investing overseas...
 
The Mexican peso is the cheapest it has been in decades. And if you bought Mexican stocks any time in the last few years, that has crushed your investments...
 

Are You a
New Subscriber?

If you have recently subscribed to a Stansberry Research publication and are unsure about why you are receiving the DailyWealth (or any of our other free e-letters), click here for a full explanation...
 

Advertisement

The U.S. gov't is busy working on a plan that could have a more transformative effect on American money than any other change the government has made in the past 100 years. And may have major consequences for you and your money. Full details here...


recent articles

How to Inherit 20 Years of Business Know-How in a Single Year
By Mark Ford
Friday, March 10, 2017
 
The big problem everyone has when starting a new business is ignorance...
 
How to End up With a 434% Winner
By Dr. Steve Sjuggerud
Thursday, March 9, 2017
 
We're up 434% on one trade in my True Wealth Systems newsletter. How did we do it? The answer is simple. But it's hard to put into practice...
 
The Rich Do Have a Secret
By Dr. David Eifrig
Wednesday, March 8, 2017
 
Many Americans – average folks working to build a comfortable life – assume the "rich" have a secret...
 
Why I'm Buying This Breakout Market Today
By Dr. Steve Sjuggerud
Tuesday, March 7, 2017
 
In January, my True Wealth Systems computers alerted me to the big story the rest of the world was missing...
 
The Cheapest, Most Hated Asset Today
By Dr. Steve Sjuggerud
Monday, March 6, 2017
 
Everything has gone up. The "Trump Bump" has turned into a frenzy... Nothing is cheap anymore... right? My friend, you are not looking hard enough...
 

Home | About Us | Resources | Archive | Free Reports | Privacy Policy
To unsubscribe from DailyWealth and any associated external offers, click here.

Copyright 2017 Stansberry Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry Research, LLC., 1125 N Charles St, Baltimore, MD 21201

LEGAL DISCLAIMER: This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. Stansberry Research expressly forbids its writers from having a financial interest in any security they recommend to our subscribers. And all Stansberry Research (and affiliated companies) employees and agents must wait 24 hours after an initial trade recommendation is published on the Internet, or 72 hours after a direct mail publication is sent, before acting on that recommendation.

You're receiving this email at newsletter@newslettercollector.com. If you have any questions about your subscription, or would like to change your email settings, please contact Stansberry Research at (888) 261-2693 Monday – Friday between 9:00 AM and 5:00 PM Eastern Time. Or if calling internationally, please call 443-839-0986. Stansberry Research, 1125 N Charles St, Baltimore, MD 21201, USA.

If you wish to contact us, please do not reply to this message but instead go to info@stansberrycustomerservice.com. Replies to this message will not be read or responded to. The law prohibits us from giving individual and personal investment advice. We are unable to respond to emails and phone calls requesting that type of information.