Chris’ note: Today, I’m sharing another insight from Imre Gams. He’s a top trader who works alongside longtime friend of Legacy Research, Jeff Clark.
Regular readers know Jeff as a veteran trader who makes his money by going against the crowd… and Wall Street elites.
His nearly four decades-long professional track record is hard to beat. And now, he and his team share their winning strategies with everyday investors.
Below, Imre explains how global interest rates have led to a 95% win rate using their latest strategy… and why it’s the best time in 15 years to trade an often-overlooked corner of the market.
If you’re interested in learning more about how you can participate, make sure to join him and Jeff at their free online breakout session this Thursday, February 9, at 8 p.m. ET. You can sign up here with one click.
Think you can’t make money in today’s market?
That’s the relentless message mainstream financial media organizations are pumping out.
But it’s a lie…
Sure, stock market investors have been cursing the Fed and battling a bear market. But currency traders have never been happier.
I launched the beta test of my Currency Trader advisory in July 2022. (During a beta test we verify the accuracy of a system internally before sharing it with the public.)
And so far, 22 of my 23 recommended trades have been winners.
That’s a 95% win rate.
One trade I recommended gave beta testers the chance to make $1,694 on a $10,000 account… in just one day.
Another could have netted you a $2,145 gain on a $10,000 account… in just three days.
That’s a 21% return – roughly double the average annual return of the S&P 500 over the past 30 years.
The good news is you don’t need a $10,000 account to get started. You can get started as a currency trader with as little as $200.
So today, I’ll pull back the curtain on the top-down “macro” trend that’s powering this winning streak.
It’s all down to a momentous decision last year by the world’s most powerful central bank, the U.S. Federal Reserve…
In 2020, the coronavirus spread out of China and around the world.
So the Fed doubled down on its 2008-era policies to fight the economic issues brought on by the pandemic. It dropped interest rates back to zero… and cranked up the printing press once again.
This ultra-loose monetary policy… plus the $5 trillion in direct stimulus Congress authorized… helped fuel the worst inflation since Ronald Reagan was in the White House.
So the Fed had to start raising rates again last March to fight inflation (an inflation that it had previously claimed was “transitory”).
As the Fed raised rates, it triggered a bear market in stocks. And it caused a roughly $9 trillion wealth wipeout for stock market investors.
But the Fed’s move had an unexpected side effect. It set the stage for the foreign exchange – or forex – market to make a big comeback.
In fact, it’s led to the best trading environment for forex in 15 years.
We’re seeing dramatic moves across the major currencies almost every week. Each one is an opportunity to scalp outsized trading returns.
Check out some of the returns beta testers have had the chance to make from live trade recommendations…
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Trade #1 returned $1,767 in 7 days…
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Trade #2 returned $1,907 in 5 days…
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Trade #3 returned $2,145 in 3 days…
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Trade 4 returned $1,694 in 1 day…
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Trade #5 returned $728 in 1 day…
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Trade #6 returned $1,560 in 1 day…
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Trade #7 returned $1,227 in 2 days…
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Trade #8 returned $767 in 4 days…
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Trade #9 returned $1,434 in 3 days…
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Trade #10 returned $2,440 in 9 days…
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Trade #11 returned $1,880 in 4 days…
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Trade #12 returned $2,008 in 6 days…
So, why did this happen?
It’s all down to interest rates.
Capital goes where it’s treated best. So currencies that offer higher interest rates suck in capital from lower-yielding currencies.
Say you can earn 1% interest in a bank account in Australia… but you can earn 3% interest in New Zealand. Wouldn’t you move your money out of Australia and into New Zealand?
Well, that’s what hedge funds, currency traders, investment management firms, and businesses do, too.
They sell their Australian dollars (AUD) and buy New Zealand dollars (NZD). This pushes up the value of NZD relative to AUD.
It’s like supply and demand of a product. If people demand less of something, the price falls. If demand increases, the price goes up.
That’s what happened here, and that move between these two currencies created an opportunity to profit.
That’s why currency traders are happiest when there are big differences – or spreads – in interest rates around the world.
And that’s exactly what’s been happening since the Fed started raising rates again last March.
It set off a chain reaction of rising interest rates around the world, as other central banks followed suit.
We’ve seen this play out between the U.S. dollar and its European counterparts – the euro and the British pound.
Last July, the euro fell to parity with the dollar (meaning one euro equals one U.S. dollar). The last time this happened was back in 2002.
And last September, the British pound dropped to an all-time low against the dollar. That coincided with the British government trying to pass a reckless budget.
But this currency action all made sense.
The Fed jacked up U.S. interest rates to 4.5%. At the time, the equivalent rates were just 2.5% in the eurozone and 3.5% in Britain.
Yet despite the Fed’s frenzied rate hiking, inflation in the U.S. is still running at an annual pace of 6.5%. That’s more than three times higher than the Fed’s target rate of 2%.
That means a lot more pain to come for investors sticking to traditional asset classes such as stocks and bonds.
But it means more great opportunities to trade currency moves.
Over the coming days in these pages, I’ll reveal more about my currency trading strategy.
And this Thursday, February 9, at 8 p.m. ET, I’ll be hosting a free trading breakout session.
I’ll go into more detail on why the stars are aligning for currency traders right now… and how the current market is offering the best forex opportunity in 15 years.
I’ll show you how you can get started… and how to access to more than $4,000 in bonuses just for attending.
And I’ll even reveal what I’m looking to trade next. So, claim your spot for this event right with one click right here.
Happy trading,
Imre Gams
Editor, Currency Trader