Europe’s currency – the euro – is going down…
The reasoning is simple.
A weaker euro is politically the easiest fix available…
You see, Europe is struggling right now.But inflation is not a problem. So a weaker currency is an easy fix.And that is the exact solution that Europe is pursuing today.
If you haven’t taken advantage of this situation yet, there’s an easy way to do it through your regular brokerage account.
Let me explain exactly what’s happening, and how to trade it.
From The Wall Street Journal last week:
European Central Bank President Mario Draghi signaled Thursday he was pleased with the recent decline in the euro’s exchange rate and outlined a number of forces that may weaken it further…
[ad#Google Adsense 336×280-IA]Mr. Draghi, according to the article, made “unusually blunt comments about exchange rates. Central bankers typically shy away from such direct remarks on currencies.”
Government officials might be incompetent at a lot of things… But one thing they can do very well is “trash” their currencies.
And the euro is in the midst of its trashing. Draghi isn’t even trying to hide it.
Two months ago in DailyWealth, I explained exactly how to make this trade, through an exchange-traded fund – the ProShares UltraShort Euro Fund (EUO).
I wouldn’t change a word of it today. Please read it:
As I write, we have an uptrend in EUO. EUO is breaking out to highs not seen since early February of this year. It’s looking good.
Thankfully, you can set this trade up in a high-reward, low-downside-risk way…
EUO is a unique investment… It will give you a lot more upside than the currency itself, if I’m right about the euro.
Here’s how it works: If the euro falls by 1% in a day, this fund will rise by 2%. The opposite is true as well – if the euro rises 1% in a day, this fund will fall by 2%. (A proper description for this type of fund would be to call it an “inverse 2x fund.”)
In short, Draghi is going to “trash” the euro. And EUO is an easy way to profit as he does.
I wrote that two months ago. The picture has only gotten clearer since then. Draghi is closer to unleashing a QE-style stimulus in Europe. He’s willing to do anything to continue to “trash” to euro. But the euro hasn’t moved that much – yet.
Europe’s politicians want a weaker euro. They will get it. And you can profit from it, by buying EUO – an inverse fund.
I suggest getting on board today…
Source: Daily Wealth