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Sunday, July 26, 2009

Media Alert: Forex and Commodities Expert Available to Discuss What Fed Move Into Treasuries Means for Investors -- and What They Should Do About It

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 ( ), a live forex training organization, and author of "The FX Bootcamp Guide to Strategic and Tactical Forex Trading" (Wiley Trading, September 2008).
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"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 .

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, 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.

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Contact: Itay Engelman Sommerfield Communications (212) 255-8386

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