The Three Global Shifts That’ll Change The Way You Trade in 2012

Welcome to the FSP Invest VIP Trader webinarThe three global shifts that’ll change the way you trade in 2012

By Warren Jeffery, Head of Trading and ResearchFSP Invest

2012…• What to look forward to• And the best ways to profit!

How the webinar will work• Introduction• The next 20-year Super Cycle

by Francois Joubert of Red Hot Trader• Chinalisation and Currency

by Gavin Fourie of Forex Trader• A Bear in a Bull Market

by Warren Jeffery of Spread Trader• Viewer Q&A

How the webinar will workNOTE: All questions will be addressed after the speakers have shared their insights and predictions for 2012.

How the webinar will workNOTE: All questions will be addressed after the speakers have shared their insights and predictions for 2012.

The next 20 year Super Cycle!Don’t miss out on the bull market of the decade

By Francois Joubert, Chief Investment StrategistRed Hot Penny Shares and Red Hot Trader

A big year for resources…

• A bigger year for oil!• Oil at $150/barrel• Petrol at R15/l this year…

IRAN

• Active nuclear programme• Threat of nuclear warfare• USA and Israel up in arms…• US sanctions on Iranian oil imports...• Iran threatens to cut off their trade

rout…• Major oil shortages• Huge oil price spikes worldwide…

Think about it…

• What does the US do whenever someone threatens its oil supply?

• It bombs them!• Iranian citizens hoarding supplies to

sustain them should a war break out…

Iran surrounded by US military bases

So what should you do?

• Hedge against an oil war in the Middle East…

• Buy Sasol!

Another hot commodity

• GOLD• Conservative view: $2,000/ ounce by

year end…• But if a war in the middle east breaks

out…• Expect $2500/ounce or more!• Buy gold whenever it pulls back below

$1650

Red Hot Resource Report

• Coming 1st April 2012:The Red Hot Resource Report: 6 Ways to Profit from the 20-year Commodity Super Cycle

• Email your name to resource@fsp.co.za to find out how to get your hands on this report

Chinalisation and CurrenciesMake money from money as the Red Dragon roars ahead in 2012

By Gavin Fourie, Chief Investment StrategistForex Trader

The world’s new reserve currency

• The yuan: • The world’s safest, least volatile,

currency• The People’s Bank of China control price

fluctuations• The yuan’s gained 4.5% per year against

the US dollar for the last 7 years• This a safe and steady return will

continue this year

Gaining strength against the dollar…

The currency of the decade

• The yuan’s the best currency to own today

• Just a matter of time till the yuan’s freely traded…

• Then the yuan will rise rapidly against the dollar -and all other currencies.

The entire world wants in on the action• Hong Kong’s yuan deposits balloon from

$1 billion to $95 billion in just over two years

• China's bond market’s soaring• It’s grown from virtually nothing four

years ago to around $31 billion today• It’s anticipated to grow to $1 trillion by

2020• Huge profit potential for the yuan

Commodities and Currencies

• The commodities rally will strengthen 2 currencies:

• The Australian dollar (AUD)• The Canadian dollar (CAD)

The AUD at an all time high

Why the AUD?• Australia is a significant exporter of iron

ore, wool and other resources to China• With China growing as fast as it is, the

AUD will benefit from the increased demand for Australia’s resources

The CAD gains strength

Why the CAD?• Oil’s going to $150 per barrel• The CAD is highly correlated with oil• Canada has the second largest reserves

of oil in the world, behind Saudi Arabia• Oil exports generate over 8% of its

annual gross domestic product per year• So as the oil price goes up, the CAD will

strengthen

The worst performers of 2012

• 2nd place: the rand• 1st place: the euro

The rand and the euro lose ground

Why will the rand fall?• Expect a full-out eurozone recession• Even China won’t save the day• Harsh austerity measures hamper

growth• Expect the euro to fall to around

$1.2000• 35% of SA’s international trade is with

Europe• The rand will follow the euro downwards• Expect the rand to fall to R9 per

dollar

Take a long-term view to bank short-term profits

• Trade more profitably this year…• Know where currencies are going in the

long-term• Then capitalise on the short-term

fluctuations within these long-term trends for maximum profits

A Bull in a Bear MarketRide the rampant bull that’s set to charge through 2012 to huge profits

By Warren Jeffery, Head of Trading and ResearchFSP Invest and analyst for Spread Trader

Why I tend to be bit of a bear

• The down moves in the market tend to be the big moves

• Bear markets are where the exciting money is made

• But in 2012 the bull is bigger than the bear

• There’s a massive bull getting ready to charge

• You don’t want to get caught short in front of it!

Every detail has fallen into place to make 2012 the perfect bull year

• Global economic recovery’s starting to take hold

• Record loose monetary policies around the world

• Healthy inflation caused by increased spending

• Inflation directly drives share prices higher as the value of the money shares are priced in decreases

• All these factors feed the 2012 market bull

The bull’s already begun• January 2012 saw the S&P 500 up 4.36%• The S&P gives insight as to what 2012

has in store• Since 1957 the S&P has only moved

up 4.36% or more in January ten times

• In each of those ten years the annual S&P returns averaged over 22% - compared to the usual overall average of just 7.6%

• So expect a big bull through 2012!

The JSE All Share index to breach the 40,000 level this year

• For the markets to push to this level in 2012, the majority of the moves will be to the upside

• Use market pullbacks as opportunities to buy into the markets

• Enjoy the ride to your most, rewarding profitable trading year ever!

Questions and answersSend us your questions now!

Happy Trading!

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