Today, a look at how China could crash the global economy… and how you can position yourself to profit.
But first… a quick thought experiment.
Imagine waking up in the morning… grabbing a shower… and heading to the office.
You buy a coffee… hop on the subway… and make it to your desk before the sun comes up.
You switch on your computer monitors… catch up on the latest news headlines… and scan some fresh market data.
Then you set about putting together a $10 billion trade.
If it goes wrong, it’s a fortune on the line. If it goes right, it will pay out a $1 billion profit.
With that kind of cash, you could spend $1 million a week for the next 19 years… and still have cash left over.
One of them is Andy Krieger.
He’s the famed currency trader I (Chris) introduced you to on Thursday.
Andy has an uncanny talent for spotting patterns in market movements. When he was just three years old, he’d read the stock quotes in the newspaper… spot predictable patterns… and tell his father what stocks to buy. Andy says his father actually made money on these tips…
He went on to use this talent to score some of the biggest trading wins in history. He’s made hundreds of millions of dollars in profits on single trades – several times in his career.
Andy was such a key figure on Wall Street that when he quit his job at top trading firm Bankers Trust, The Wall Street Journal splashed the story across its front page.
Now, he’s getting ready to make the biggest trade of his career.
It’s on an unprecedented currency move he says will hit sometime mid-2020. And as you’ll see today, the trigger could be a crashing Chinese economy.
Our mission here at The Daily Cut is to help ordinary investors achieve extraordinary gains in the market. And we do that by plugging you into the top moneymaking ideas from some of the world’s greatest investors.
And they don’t come much greater than Andy.
He became a legend on Wall Street after the monster trade he made in 1987, while at Bankers Trust.
He bet that the overvalued New Zealand dollar would fall versus the U.S. dollar. It turned a profit of $300 million for his firm.
And that wasn’t even the biggest trade of Andy’s career so far.
He later put together a trade worth $10 billion for a private speculator. It paid off if the German currency at the time, the Deutschmark, fell against the dollar.
That’s exactly what happened. That trade paid out $1 billion.
He hasn’t worked on Wall Street since 1988 (when he quit George Soros’ Quantum Fund).
Since then, Andy has been trading multibillion-dollar positions in the currency, commodity, and financial markets as an anonymous actor.
But this year, he’s decided to come forward and warn as many people as he can about the big move he sees coming in global currency markets.
He says it will be highly dangerous if you’re unprepared. But he also says it will be an opportunity to 30x your money… if you follow his trading instructions.
He’ll be revealing all the details during a live broadcast on Thursday at 8 p.m. Eastern Time.
But I can tell you here that it has to do with the worldwide addiction to easy money central banks have been pumping into the economy.
Here’s Andy with more…
It started in 2008. That’s when central banks resorted to seemingly endless printing of money. They hoped it would avert the total collapse of the global financial system.
This move prevented the collapse. But the central banks have continued the printing to this day. And the easy money gets quickly sucked up by the addicts – all of us. What was supposed to be a temporary, emergency fix has become a seemingly permanent dependency.
But despite all of the central banks’ efforts, economic growth is in trouble around the world…
As followers of Legacy Research cofounder Bill Bonner will know, Japan’s central bank has been one of the most aggressive in trying to “stimulate” the economy through easy money.
Since 2001, it’s been flushing new cash into the economy by way of quantitative easing (QE). That’s economist-speak for buying bonds with newly created cash.
And today, the Japanese central bank also owns roughly 5% of the entire Japanese stock market.
But yesterday, news broke that Japanese GDP (aka economic growth) plunged by an annual rate of 6.3% in the fourth quarter of last year.
And you better believe that matters – Japan’s economy is the world’s third largest.
Meanwhile, the world’s fourth-largest economy, Germany, is flatlining. It grew just 0.6% last year.
With two of the world’s largest exporters headed for recessions… forecasters are starting to downgrade their global growth outlooks for 2020.
The deadly virus has infected more than 72,436 people in China alone. And so far, it’s killed at least 1,875 people worldwide.
U.S. companies are now saying the outbreak is going to make a dent in their profits. Apple just warned it won’t meet Wall Street analysts’ earnings estimates for the next quarter.
That’s due to work slowdowns in China (where Apple makes most of its products) and a gaping hole in demand.
That’s because 46 million potential Chinese iPhone buyers are in quarantine.
And the result will be even more money-printing. Andy…
China’s economy is the world’s second largest after the U.S. It’s come to a near standstill due to the coronavirus. But it’s not just the virus the Chinese authorities are contending with. There’s also the record number of corporate bankruptcies… and terrifying levels of bad loans on banks’ balance sheets.
The Chinese central bank is resorting to the same practices other central banks have mastered. It’s pumping the equivalent of hundreds of billions of dollars into the system in an effort to float China’s economy out of trouble.
It won’t be just the People’s Bank of China, the Chinese central bank, that panics if its economy falters. A dramatic end to the 31-year Chinese boom could send the global economy tumbling.
If that happens, Andy says the Fed won’t be far behind the People’s Bank of China with more easy money…
The Fed will implement even more aggressive levels of quantitative easing. It will balloon the central bank’s balance sheet to almost unimaginable levels and pump trillions more newly created dollars into the system.
Far from it.
Although he describes the current situation as dangerous… he’ll use the coming move as an opportunity to place what could be his biggest trade ever.
And he says savvy investors can make 30x their money when the wave of volatility he sees coming hits.
You might think a strategy like this would involve tons of risk. But not the way Andy creates trades.
You see, for all the monster trades he’s responsible for, he kept his downside risk strictly limited using a strategy he’s developed over his 33-year career dominating markets.
He’ll reveal all Thursday, February 20, at 8 p.m. Eastern Time. I hope you take the opportunity to learn from one of the top traders of all time.
Andy will tell you all about the currency event he sees coming… and the details on how to profit.
So make sure you sign up to attend, for free, here.
Regards,
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Chris Lowe
February 18, 2020
Barcelona, Spain
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