Blog > International Investing > Blog article: Foreign Investment: Cuba’s currency predicts an economic train wreck
 | Email This Article Email This Article  | 

Foreign Investment: Cuba’s currency predicts an economic train wreck

Posted March 10, 2008

"In March of 2005, Cuban President Fidel Castro announced he would decrease the value of the Cuban peso 7% in a single day. In other words, Fidel Castro was debasing his country’s currency — on purpose." — Sean Hyman

by Sean Hyman

Baltimore – (TFN):  There’s a lot to be said for watching other investors’ mistakes to learn what you should avoid in your own personal portfolio. I mean, why lose money on mistakes when someone else already did it for you?

And in the case of currencies, there’s no bigger cautionary tale than the Cuban peso.

Now, I realize you may not ever dream of investing in Cuba (I personally cross-off such unstable areas), but you can still learn a lot from watching this train wreck of a currency.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

New Century Financial
BANKRUPT!

American Home Mortgage
BANKRUPT!

Two Bear Stearns Hedge Funds
BANKRUPT!

The bad news just keeps on coming. And it keeps getting worse… except for those savvy investors who know how to make these "disasters" work for them.

Give me 10 minutes, and I’ll show you how you could turn financial bloodbaths like these
into gains of as much as 467%, 594% and 640%.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Foreign Investment: Revaluation spells trouble

For starters, the Cuban peso has been on a revaluation rollercoaster for nearly 20 years. Back in 1989, the peso was valued at seven pesos to the U.S. dollar. Then just five years later, it was 95 pesos to a dollar.

In 2005, it was changed again. Now a dollar bought you 25 pesos. In March of 2005, Cuban President Fidel Castro announced he would decrease the value of the Cuban peso 7% in a single day.

In other words, Fidel Castro was debasing his country’s currency — on purpose. Read on to discover which country has the right environment for solid currency investment.

****Make sure you sign up for our FREE TFN News Feed for breaking news, special reports and new financial videos. You can pick your favorite reader . Or if you prefer, you can have the feed delivered to your email. 


Related Articles


Posted by Sean Hyman · Filed Under International Investing 

Comments

close Reblog this comment
Powered by Disqus · Learn more
blog comments powered by Disqus