PEACHTREE CITY, GA--(Marketwire - March 20, 2009) - A trading expert is available to discuss
the U.S. Federal Reserve's move to buy U.S. Treasuries, what it means for
traders and investors, and what they should do about it.
"The Fed's purchase of Treasuries might help save the real-estate market,
but we're going to have to pay a high price for it over the next decade,"
says
Wayne McDonell, Chief Currency Coach of FX Bootcamp
(
www.fxbootcamp.com), a live forex training organization, and author of
"The FX Bootcamp Guide to Strategic and Tactical Forex Trading"
(Wiley Trading, September 2008).
"The move killed the dollar, rallied gold and will drive inflation by
pushing interest rates down and driving up stocks," Mr. McDonell says.
Mr. McDonell is available to discuss:
- What traders should watch for: "Keep an eye out for signs of
hyperinflation," Mr. McDonell says. Hyperinflation will hit if the stock
market rallies ahead of the economy in a low interest-rate environment.
"The Fed will try to hold interest rates low while it waits for signs of an
economic upturn, and that will drive investors into stocks. The market for
Treasuries will crash once the Fed stops buying, and that will drive stocks
higher, too. Higher share prices will put money into circulation that the
economy can't absorb -- it will lose value, and the USD will fall. Signs
are there -- gold is already up and the USD and JPY are under
pressure."
- What they should do: "Consider selling the USD and JPY and
buying gold," Mr. McDonell advises. "Rising U.S. share prices in a slow
growth environment will create an oversupply of USD and drive down its
value. The Japanese economy will follow a similar profile. Also, think
about buying the AUD. Australia will benefit from a gold boom and since
many commodities are priced in USD, the lower purchasing power will likely
raise the price of commodities -- Australia is a net exporter of commodity
classes such as gold, coal, beef and wheat."
To not miss the boat, traders should be disciplined about watching for
further signs of hyperinflation -- such as a continued upward move in share
prices while economic activity and interest rates remain low -- and be
ready to act, Mr. McDonell says.
Wayne McDonell is available for interviews. For more information, or
to schedule an interview, contact Itay Engelman of Sommerfield
Communications at (212) 255-8386 or itay@sommerfield.com.
About Wayne McDonell
Wayne McDonell is the Chief Currency Coach of FX Bootcamp, a live forex
training organization, which has an audience comprised of members from over
50 countries. He is also the author of
"The FX Bootcamp Guide to
Strategic and Tactical Forex Trading" (Wiley Trading, September 2008),
a top seller in the Foreign Exchange category. Mr. McDonell is a regular
speaker at major investing conferences, including the upcoming Traders Expo
in New York. He provides his weekly trading outlook on FOREX Television and
his training videos are syndicated around the world on outlets including
FXstreet.com, MoneyShow, DailyFX, Yahoo! Finance, MSN and others. As a
professional forex trader, Mr. McDonell is a member of the National Futures
Association and a registered Commodities Trading Advisor.
Contact Information: Contact:
Itay Engelman
Sommerfield Communications
(212) 255-8386
itay@sommerfield.com