Economy Could Make Smart Investors Rich.
With Boris Schlossberg and Kathy Lien
Hosted by Larry Edelson
This is Larry Edelson, welcoming you
to the first episode in our series Three Shocking
Forecasts for 2016. Now, my special guests today are
two superstars of Wall Street,
In today's program, Boris and Kathy will unveil their
forecasts for my part of the world, the Far East.
Welcome Kathy, welcome Boris. It's great to have
you here today.
Great to be
with you, Larry.
Great to be here.
Tell me about
forecast number one.
Well, first and foremost, in
terms of our general outlook of the economy, we think that the markets are
headed lower and there's one trade that we're watching very carefully. The
rest of the market hasn't really discovered and that's the New Zealand
The reason why the New Zealand dollar is so attractive is because we
believe terrorism and China's economic crash will explode New Zealand's
economy creating massive profit opportunities. Now, this is not what the rest
of the market is doing or thinking about because the New Zealand dollar has
been falling and locks up with China's market meltdown. But, the lower it
falls the better the opportunity it is for us to get in.
81% win rate in 2015! Gai
up to 2,043%
Gains of 1,392% ... 1,401% ...
up to 1,587% possible!
to get Boris and
Kathy’s “Buy” and “Sell” signals
throughout 2016 and beyond!
The new year started with crushing losses in the financial market and mark
my words, the selling will only intensify in the months to come. So it's time
to consider new places and instruments to park your money and we think
there's no better opportunity than the New Zealand dollar.
Why? Because geographically New Zealand is as remote as you can get. It's
a tiny Anglo-Saxon economy that is rich in resources, and with what we
believe is becoming increasingly rare: A stable economy and a political
system that is relatively stable as well. And what I love about it the most is
that it has extremely low risk of terrorism.
Well, Boris and I are currency traders, and what we particularly like about
the way the New Zealand government is run is that the prime minister is
actually a currency trader in his former life. So in terms of monitor policy,
fiscal policy, he knows the importance of currency policy.
Now, New Zealand is very rich in natural resources and you may know that
New Zealand provides significant amount of natural resources to China, but
they also sell to Russia.
Back in August, Russia extended its food ban on many western nations, but
New Zealand was the only country that escaped the ban. Russia was
desperate to meet the countries shortages of milk products, and that is New
Zealand's most valuable export, which is milk, and it's one of those exports
that the world cannot live without.
So, even though Russia may be
kind of in a difficult situation with
many parts of the world, they're
still importing from New Zealand
and I think that benefits New
Zealand's economy at a time
when China's economic rotation,
which we'll talk about later is also
going to provide long-term
support for New Zealand's
Well, I don't think I could
agree with you more. My wife
and myself were in New Zealand
last year, we love the country, its
people, its products, it's
politically stable, it's run by a
former Forex trader, which is always a good thing, so I don't think I could
disagree with you on any account there, Kathy.
Tell me now about forecast number two if you will.
Now, Larry, forecast number two is really interesting because we
think that at the same time as the New Zealand dollar is going to soar, the
Swiss franc is going to sink like a stone; amplifying our profit opportunity.
We like the idea of buying the New Zealand dollar versus the Swiss franc
because there's more trouble in the euro-zone to come and that's going to
mean much, much more pain for Switzerland.
Yes. The weakness of the euro puts great pressure on the Swiss
franc. For example, if terrorist attacks intensify, it's likely that more
investors are going to convert their money into francs and this is exactly
what the SNB has been trying to avoid for years.
They won't be able to credibly introduce another euro Swiss peg, but they
can intensify their war on cash. They can punish savers very badly by
charging even more money to park money in the banks. So that means, for
example, they could take the rates further into negative territory, breaking
the key one percent barrier.
Just to give you an idea what that means psychologically, imaging if you put
1,000 francs into the bank in January 1st. By December 31st, all you have,
even if you didn't take a single franc out of your bank account is 990 francs
left. It's like government is stealing your money and that is definitely going
to drive the value of the franc lower as the year progresses.
Yeah and also, you know Switzerland has caved in on privacy matters
digitally and tax wise, to the United States, so it's lost its safe haven status
as well. I can't disagree with you there.
How about the geopolitical reasons? Give me some of the bigger geopolitical
reasons, for example, with China and New Zealand.
Well, Larry, this is the year of terror in the markets and I think
everyone's watching for where the next big terrorist event is going to occur.
There are more than a million people on the U.S. terror watch list.