Buying foreign securities.

Suppose you invested 10,000 euros ($8,300) in a European stock in 2002.  Even if its share price went nowhere, thanks to a falling dollar you could sell your shares, and those same 10,000 euros would now be worth $15,500.  That's an +87% gain from the currency fluctuation alone -- with no share price appreciation.  Of course, most foreign stocks have been surging lately, which would make the gains even more dramatic.

Likewise, dividends paid in foreign currencies are worth more when converted into U.S. dollars.

Suppose you invested in a European stock that paid an annual dividend of 5 euros per share.  This dividend would have been worth only $4.15 annually in 2002.  But thanks to the falling dollar, the same 5 euro dividend is now worth $7.75 -- also an increase of +87%.  How many U.S. stocks have you run across that have raised their dividends +87% since 2002?

Currency Fluctuations Lead to Big Gains for U.S. Investors

Whether you're investing in Zanzibar or on the NYSE, you're making a currency bet.

Get the currency right and you've already won more than half the battle.  If you can get into a country when its currency is 200 units to the dollar and get out when it's 100 to the dollar, you've already doubled your money.  And that's on top of any capital gain on the stock or interest on the bond.

I hate to discourage all the stock pickers out there, but the simple fact is that it's much more important to be in the right countries than the right stocks.  An appreciating currency pushes the dollar value of your investment ever upward, even if its price in local currency doesn't move a bit.

Take Australia, for example.  You could have bought any Australian stock five years ago, and with the currency doubling against the dollar, you would have had an extra 100% in your pocket -- on top of whatever the stock appreciates.  The +160% return of Australia's All Ordinaries Index became a +301% gain for U.S. investors.

Almost the exact same thing happened in New Zealand.  Over the past five years, stocks have soared +92% there.  But American investors gained +176% because of the currency effect.

In Germany, stocks rose +165% in euros, but in dollar terms they were up +273%.

It goes on and on around the world.  In Great Britain, stocks rose +94% for British investors, but +145% for their U.S. counterparts.

In Brazil, the currency effect was like rocket fuel.  Local investors saw their shares soar +518% . . . but in dollar terms Brazilian stocks gained an eye-popping +1,203%!

Profit from Today's Most Attractive Currencies . . . and Lock in Dividend Yields of up to 24.9% 

Over the next several years, foreign currencies should continue to skyrocket versus the U.S. dollar.  After all, U.S. economic growth is slowing, foreigners are pulling their money out of U.S. treasuries, and money is flowing into other countries like Brazil, Norway, Poland, Australia and New Zealand in an effort to capture strong returns and relatively high interest rates.

With all of these factors in mind, I believe the U.S. dollar will continue to fall versus many other foreign currencies, leading to an ever-increasing stream of capital gains and dividends for U.S. investors.

In fact, millions of investors have already locked in gains of up to +1,203% and healthy average dividend yields of 8.5% simply by investing in foreign stocks . . .

These recent returns have been nothing short of spectacular, but if you're investing in today's markets, then you need to know where to put your money NOW in order to capture both high yields and strong capital gains.  That's where my premium newsletter -- High-Yield International -- comes in.  It's the only newsletter of its kind devoted exclusively to finding high-yielding securities in today's best-performing foreign markets.

In recent issues, I've profiled some of the most attractive dividend payers on the planet, including a rock-solid Australian utility with a 21.1% yield, an international shipping company paying 15.7%, an emerging Europe fund with a 21.5% yield, and a Canadian trucking giant with dividends of 24.9%, among many others.   

If you'd like to learn the names of these companies -- plus receive a steady stream of foreign stocks, funds and other investing ideas with abnormally high dividend yields each and every month -- then I'd like to extend you a personal invitation to try my premium international investing newsletter . . . High-Yield International. Visit this link to learn more. 

-- Nick Lanyi
Editor
High Yield International

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