8 Ideas to earn US$

The US$ is at RM 4.44 as of today.

Imagine if you could generate some income in US$ now.

I have come out with some ideas on how to get some US$.

The ideas below are what I think an individual could do. They are all medium to low risks ideas. If some of these ideas aren’t for you, just skip ahead to the next ideas.

Your situation is 100% unique and the only way you are going to make US$ is to ignore the ideas that aren’t right for you. Even if 80% of the ideas in this article are completely useless for you, that still leaves 1-2 ideas for you to consider for making US$ !

1. Invest/trade in US stocks for capital gains

2. Invest in US stocks for their dividends/bonus/splits

3. Invest in a stock options strategy called covered call.

4. Invest in a US property for value appreciation and collect rentals.

5. Open a Foreign Currency account in US$ and earn interest on the balance and future appreciation of US$.

6. Create a blogger site like Ongmali Blogspot, apply for Google Adsense advertisement and earn revenue in US$.

7. Register for EBay etc that allow you to sell something to other people and sell your goods online.

8. Create a website and sell 3rd party goods online.

The US Dollar Bull Market Could Trigger a $9 Trillion Debt Implosion

The US Dollar rally, combined with the ECB’s policies and the Fed’s hint at raising rates in December, is at risk of blowing up a $9 trillion carry trade.

When the Fed cut interest rates to zero in 2008, it flooded the system with US Dollars. The US Dollar is the reserve currency of the world. NO matter what country you’re in (with few exceptions) you can borrow in US Dollars.

And if you can borrow in US Dollars at 0.25%... and put that money into anything yielding more… you could make a killing.

A hedge fund in Hong Kong could borrow $100 million, pay just $250,000 in interest and plow that money into Brazilian Reals which yielded 11%... locking in a $9.75 million return.

This was the strictly financial side of things. On the economics side, Governments both sovereign and local borrowed in US Dollars around the globe to fund various infrastructure and municipal projects.

Simply put, the US Government was practically giving money away and the world took notice, borrowing Dollars at a record pace. Today, the global carry trade (meaning money borrowed in US Dollars and invested in other assets) stands at over $9 TRILLION (larger than the economy of France and Brazil combined).

This worked while the US Dollar was holding steady. But in the summer of last year (2014), the US Dollar began to breakout of a multi-year wedge pattern:

Why does this matter?

Because the minute the US Dollar began to rally aggressively, the global US Dollar carry trade began to blow up. It is not coincidental that oil commodities, and emerging market stocks took a dive almost immediately after this process began.

The below chart shows an inverted US Dollar chart (so when the US Dollar rallies, the chart falls), Brazil’s stock market (blue line), Commodities in general (red line) and Oil (green line). As you can see, as soon as the US Dollar began to rally, it triggered an implosion in “risk on” assets.

This process is not over, not by a long shot. As anyone who invested during the Peso crisis or Asian crisis can tell you, when carry trades blow up, the volatility can be EXTREME.

Indeed, the US Dollar as broken out of a MASSIVE falling wedge pattern that predicts a multi-year bull market.

The market drop in August triggered by China devaluing the Yuan (another victim of the US Dollar bull market) was just the start. Once the US Dollar rally really begins picking up steam, we could very well see a crash.


Source: http://www.zerohedge.com/news/2015-11-09/us-dollar-bull-market-could-trigger-9-trillion-debt-implosion

October 31 : 5 Things to know

1. Today is Halloween Day in the US. Lots of fun where people wear costumes and do pranks on each other. Some people think today the spirits will be released and allowed to roam a day before All Saints Day on November 1.

2. This week the KLCI Index dropped every day from Monday to Friday. Index seems very bearish (yet) the small cap and penny stocks rallied. Small is beautiful they say. Is November going to be like this too ???

3. Oil prices have rallied despite all the oversupply, strong USD, OPEC no action blah blah blah. Oil post first positive week in 3 and gain 4%. Oh because of this, when you go out later, please pump more petrol for your car. You can expect an increase in petrol prices tonight. Ha-ha.

4. The US rate hike story continue again ...this time need to watch the Dec 16-17 Fed meeting. Still a month and half away. There is a 50/50 chance Fed will increase the rate to 0.25%. It means the USD will be strong and RM will remain weak, for now.

5. XOX must be the hottest stock of the month of October. It keep going up despite 2 UMA from KLSE in a month! It look like a strong stock pump and dump to me. Some, not all, criteria, for a pump and dump are there.


GA