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The U.S. Dollar is Plummeting -- Here's How to Profit from the Decline. . . and Lock in Dividend Yields of up to 24.9%
By: Nick Lanyi
Editor, High-Yield International
Learn more about the High-Yield International (click here)
Published: June 4, 2008

If you've traveled abroad recently, then you probably understand the impact of a weaker dollar when it comes to purchasing power.

In early 2002, it took about $0.83 to buy one euro -- now it will cost you about $1.57.  In other words, the same 200 euro-per-night Paris hotel room that cost $166 several years ago will now set you back about $310.

Fortunately, what's bad news for the U.S. traveler can be great news for the U.S. investor.  And the best way for you to make money off the tumbling dollar?

Buying foreign securities.

Suppose you invested 10,000 euros ($8,600) in a European stock in 2002.  Even if its share price went nowhere, thanks to a falling dollar you could sell your shares, and those same 10,000 euros would now be worth $15,500.  That's an +80% gain from the currency fluctuation alone -- with no share price appreciation.  Of course, most foreign stocks have been surging lately, which would make the gains even more dramatic.

Likewise, dividends paid in foreign currencies are worth more when converted into U.S. dollars.

Suppose you invested in a European stock that paid an annual dividend of 5 euros per share.  This dividend would have been worth only $4.15 annually in 2002.  But thanks to the falling dollar, the same 5 euro dividend is now worth $7.75 -- an increase of +80%.  How many U.S. stocks have you run across that have raised their dividends +80% since then?

Currency Fluctuations Lead to Big Gains for U.S. Investors

Whether you're investing in Zanzibar or on the NYSE, you're making a currency bet.

Get the currency right and you've already won more than half the battle.  If you can get into a country when its currency is 200 units to the dollar and get out when it's 100 to the dollar, you've already doubled your money.  And that's on top of any capital gain on the stock, or interest on the bond.

I hate to discourage all the stock pickers out there, but the simple fact is that it's much more important to be in the right countries than the right stocks.  An appreciating currency pushes the dollar-value of your investment ever upward, even if its price in local currency doesn't move a bit.

Take Australia, for example.  You could have bought any Australian stock five years ago, and with the currency doubling against the dollar, you would have had an extra 100% in your pocket -- on top of whatever the stock returns.  The +135% return of Australia's All Ordinaries Index became a +245% gain for U.S. investors.

Almost the exact same thing happened in New Zealand.  Over the past five years, stocks have soared +75% there.  But American investors gained +245% because of the currency effect.

In Germany, stocks rose +138% in euros, but in dollar terms they were up +214%.

It goes on and on around the world.  In Great Britain, stocks rose +81% for British investors, but +118% for their U.S. counterparts.

 In Brazil, the currency effect was like rocket fuel.  Local investors saw their shares soar +441% . . . but in dollar terms Brazilian stocks gained an eye-popping +892%!

Profit from Today's Most Attractive Currencies . . . and Lock in Dividend Yields of up to 24.9% 

Over the next several years, foreign currencies should continue to skyrocket versus the U.S. dollar.  After all, U.S. economic growth is slowing, foreigners are pulling their money out of U.S. treasuries, and money is flowing into other countries like Brazil, Norway, Poland, Australia and New Zealand in an effort to capture strong returns and relatively high interest rates.

With all of these factors in mind, I believe the U.S. dollar will continue to fall versus many other foreign currencies, leading to an ever-increasing stream of capital gains and dividends for U.S. investors.

In fact, millions of investors have already locked in gains of up to +892% and healthy dividend yields of 8.2% simply by investing in foreign stocks . . .

Global Stock Market Performance
5-Year Total Returns
(May 2003 - May 2008)

Country What Local Investors Earned What U.S. Investors Earned Current Dividend Yield
Brazil +441% +892% 2.5%
Norway +300% +425% 3.3%
Poland +205% +424% 3.0%
Philippines +195% +260% 4.6%
Australia +135% +245% 4.0%
Thailand +151% +223% 3.7%
Spain +143% +221% 3.8%
Germany +138% +214% 3.5%
Singapore +141% +207% 4.0%
Netherlands +106% +172% 3.9%
France +93% +155% 3.9%
New Zealand +75% +139% 8.2%
Italy +33% +76% 5.9%
United States +59% +59% 2.2%

These recent returns have been nothing short of spectacular, but if you're investing in today's markets, then you need to know where to put your money NOW in order to capture both high yields and strong capital gains.  That's where my premium newsletter -- High-Yield International -- comes in.  It's the only newsletter of its kind devoted exclusively to finding high-yielding securities in today's best-performing foreign markets.

In recent issues, I've profiled some of the most attractive dividend payers on the planet, including a rock-solid Australian utility with a 21.1% yield, an international shipping company paying 15.7%, an emerging Europe fund with a 21.5% yield, and a Canadian trucking giant with dividends of 24.9%, among many others.   

If you'd like to learn the names of these companies -- plus receive a steady stream of foreign stocks, funds and other investing ideas with abnormally high dividend yields each and every month -- then I'd like to extend you a personal invitation to try my premium international investing newsletter . . . High-Yield International.
Visit this link to learn more

Thanks for joining me on my search for today's highest-yielding securities!


Nick Lanyi
Editor
High-Yield International

About High-Yield International

High-Yield International is a monthly investment newsletter focused on bringing subscribers the highest-yield securities in the world. By focusing solely on those securities trading outside of the United States, this newsletter offers a host of relatively unknown investment options that you probably won't find coverage of anywhere else. Many of these securities provide investors with annual dividend yields of 10%, 15%, even 20% or more, while also outperforming the major U.S. averages. 

About Nick Lanyi

Nick Lanyi has spent 17 years researching and analyzing money-making opportunities for three of the most widely read investment advisory services in history. At Louis Rukeyser's Wall Street, Nick spent the better part of a decade as Rukeyser's trusted lieutenant, covering the entire investment waterfront. Earlier, Nick refined his touch at Fidelity Insight, a leading mutual-fund newsletter, and wrote for the venerable general-interest financial newsletter, Personal Finance.

Nick has been quoted in the Wall Street Journal, Boston Globe, Chicago Tribune, Bloomberg and Forbes.com. He has also appeared on CNN/fn and CNBC.

To learn more about Nick Lanyi's premium investing newsletter -- High-Yield International -- please visit this link.



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