Everbank As Your U.S. Dollar Hedge
Over the last few years The Sovereign Society has worked closely with St. Louis based Everbank (www.everbank.com). We’ve structured several foreign currency CDs, including the successful Sovereign All-Weather Portfolio and the Sovereign Asian Currency Portfolio. Both programs have posted gains since their inception amid dollar weakness.
Everbank is the leading U.S. based bank offering a dynamic lineup of foreign currency CDs backed by FDIC insurance. That’s unique in the world of currencies because most offshore banks don’t provide deposit protection; in fact, CDs and other offshore bank currency accounts are considered “on balance sheet” assets and can be seized if that bank fails. Not so with Everbank’s CDs.
Recently, Sovereign Society has worked with Everbank to launch the Everbank MarketSafe BRIC CD or BRIC currencies (Brazil, Russia, India & China) versus the U.S. dollar complete with a capital guarantee. Again, that’s a first in the United States and only available through Everbank until August 18.
But Everbank also offers a wide range of individual foreign currency CDs, including the Norwegian kroner, which is currently my favorite because I’m bullish on the NOK versus the dollar and the EUR.
Norway is a small country to be sure and her capital markets were squeezed by the deflationary storm that swept world markets in 2008; but based on fundamentals it’s also one of the few currencies to sport a positive trade and budget surplus and its surplus as a percentage of GDP is a whopping 10.5% -- higher than Germany and Switzerland. In a world mired by debt ridden currencies, the NOK is the best of the bunch.
Everbank also provides a large and growing menu of theme related CDs like the Viking CD, Dollar Bull CD, Global Power Shift CD, Petrol CD and many others.
You don’t have to go offshore to diversify into foreign currencies. For Americans and Canadians alike, Everbank offers a one stop shop to hedge against the long-term decline of dollar-bloc currencies. And you get FDIC insurance, too. That’s why Everbank is the only bank I’m recommending in the United States.