Anglo sphere is where they speak English, but aren’t US and Great Britain. Namely this consists of Canada, Australia, and New Zealand. Peter likes Australia due to it having more exposure to commodities and is a little more stable politically then New Zealand. Canada is heavily tied to the US, but will start to export elsewhere once the downturn happens and so they’re still a possibility as a place to invest in before, during, and after the economic collapse of the U.S.
Nordic Bloc allows exposure to Europe without being in the Euro zone. Countries included are Scandinavia, Iceland, Greenland, and Estonia (northern region). Both like Sweden because they really embrace free markets and no bailouts, i.e. not bailing out Saab, which recently declared bankruptcy. Specifically peter likes the Norwegian Krone due to its exposure to oil, on which he’s very bullish. They’ve also got a better balance of trade, higher interest rates, and fishing.
Continental Europe. Japan has a strong currency despite a down economy over the last 20 years. Why? The more ineffective the Japanese government is, the stronger the currency appears to become; and the reason is that they have a current account surplus. Having a current account surplus means that the economy slows down, consumers save more, and the currency gets stronger. Peter likes the Swiss Fran due to it being strong. It’s strong because of high export growth, and hardly any budget deficit, but with sound fiscal policy. With them pegging their currency to the Euro, they’ll reduce the cost of employees and paying them, but they simultaneously expose themselves to the bankrupt/eventual bailout of PIIGS countries. Euro will gain ground against the Franc in the short term with the recent peg, but the Franc will long term win because it will eventually sever its peg and appreciate accordingly.
East Asia. Peter likes the Singapore dollar most due to minimal government interference, low taxes, and low regulation. They don’t have a minimum wage. It and the Chinese Renminbi are set to rise significantly as soon as they stop pegging their currency to the dollar. Overall the Renminbi will grow like crazy once they let their currency appreciate relative to the US dollar, but until then the Singapore dollar is the way to go, but even then and WITH the peg of the Franc to the Euro, the Franc is still stronger in Axel’s opinion as a safe haven currency. Peter likes the Hong Kong dollar and sees its potential as THE currency of choice for global investors in the next five years.
These currencies would be based on a buy-and-hold portfolio for retail investors building stocks and bonds portfolios. Axel also tells his investors in his newsletter that adjusting your position on a daily basis isn’t the dumbest thing to do as sometime huge macroeconomic changes occur that have big consequences for the involved currencies.
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