Stanzione Stands Firm On Sterling Collapse Prediction
"The disagreement between the two men [Jim Rogers and Vince Stanzione] was not the weakness in the pound, but when it would appear. Jim said within months. Vince thought it was within weeks. What happens? The pound collapsed within days."
PRESS DISPENSARY - Tuesday, Mar 02, 2010 - The controversial trader and investment coach Vince Stanzione is today standing by his predictions last week for a collapse of sterling that led to something of a furore when incorrectly attributed to financier Jim Rogers.
In a statement made the morning after the pound reached a 10 month low and fell below the psychologically crucial $1.50 USD, Stanzione says:
"I was wrong to include Jim Rogers' name in my remarks about the pound last week: I've admitted that and publicly apologised. But I stand by the underlying message. On Thursday I called the pound a basket case and said that collapse was imminent. Look at where we are now. I said it would happen pre-election and many commentators are now putting yesterday's fall down to fears of a hung parliament."
As Jonathan Russell in The Telegraph put it this morning, under a heading "The end of the pound is nigh":
"Apparently the disagreement between the two men [Jim Rogers and Vince Stanzione] was not the weakness in the pound, but when it would appear. Jim said within months. Vince thought it was within weeks. What happens? The pound collapsed within days."[1]
Stanzione continues: "The pound is damaged goods: it already needs surgical support. And by the end of the year, the double dip's second slump could well see the economy needing life support, never mind surgical support. If we don't plan for that very real possibility, we'll be worse affected than we were two years ago."
His remarks come ahead of his Global Trading Day seminar in central London on March 19, at which Stanzione will be sharing a platform - and investment strategies designed to deal with the downturn - with financier Rogers and investment adviser and author Dr Marc Farber. All three speakers are confirmed to attend.
Stanzione states: "I'll admit that making these calls on sterling and the economy can help to sell our seminar, of course, but turn it the other way round: the reason we're holding the seminar, and the reason why tickets are selling, is the very real risk that what I'm saying is right. And it's not as if I'm now alone in my opinion."
Edmund Conway, also in The Telegraph, today asks, "Is this the start of a Sterling crisis?"[2] and Nick Beecroft, senior FX consultant at Saxo Bank, this morning told The Times:
"We are witnessing what can justifiably called the beginnings of sterling's collapse ... Expect a test of $1.40 within a month and, as the global landscape turns ever-more ugly on the back of deflation and sovereign debt concerns, a continuing flight to the dollar, taking sterling down below $1.20 by the summer." [3]
Even The Sun says:
"Last night it was worth $1.4986 - against $1.645 just six weeks ago. It also fell to a three-month low against the Euro. Experts said it could mark the beginning of a Pound 'collapse'"[4].
Stanzione bluntly puts his case for speaking out: "What investor wouldn't at least plan for a worst case scenario right now? Our event on March 19 is simply designed to help investors do just that, with insider advice from people who've already proved successfully how it can be done. If I see the need for that advice growing as the pound recedes, why would I not speak out?
"With foreknowledge, experience, advice and skill, even the steepest downward slide can be turned to advantage. Recession can be just as much a source of wealth as growth. That's our message at the Global Trading Day seminar."
On Thursday, The Telegraph reported that strategists at Swiss bank UBS were worried that Tory policies could send the pound down to near parity with the dollar[5]. Yesterday, Paul Robinson, chief sterling strategist at Barclays Capital in London, told Reuters: "Sentiment on sterling is very bad at the moment. Given half a chance, people will just sell it."[6] And, also yesterday, Bloomberg reported on two Scottish investment houses that are fearing the worst: Turcan Connell foresees a sterling drop of between 20% and 30% against the dollar while Bruce Stout, of Murray International Trust Plc, said the chances of a plummeting pound are "better than even" and that sterling is a "very vulnerable currency."[7]
The Global Trading Day seminar is not only about currency. It presents a full set of strategies and tips for dealing with, as Stanzione put it last week, the threat of an "economic winter".
Stanzione, Jim Rogers and Dr Marc Farber will be flying in especially for the seminar, to meet with investors who believe there's wealth to be found in the coming market conditions and want to learn its insider secrets from those who have already proven how effectively it can be done.
As Stanzione sums it up: "If some of the world's most renowned investors are betting on a deep second dip, the rest of the investment community should be doing more than looking on from the sidelines."
For more information about the Global Trading Day seminar, visit <a href="http://www.traders2010.com">http://www.traders2010.com</a>
Notes for editors
Citations
[1] <a href="http://www.telegraph.co.uk/finance/comment/citydiary/7347350/Famous-five-banks-go-looking-for-their-bonus.html">http://www.telegraph.co.uk/finance/comment/citydiary/7347350/Famous-five-banks-go-looking-for-their-bonus.html</a>
[2] <a href="http://blogs.telegraph.co.uk/finance/edmundconway/100004089/is-this-the-start-of-a-sterling-crisis/">http://blogs.telegraph.co.uk/finance/edmundconway/100004089/is-this-the-start-of-a-sterling-crisis/</a>
[3] <a href="http://business.timesonline.co.uk/tol/business/economics/article7046058.ece">http://business.timesonline.co.uk/tol/business/economics/article7046058.ece</a>
[4] <a href="http://www.thesun.co.uk/sol/homepage/news/money/2874075/Poll-panic-sparks-Pound-meltdown.html">http://www.thesun.co.uk/sol/homepage/news/money/2874075/Poll-panic-sparks-Pound-meltdown.html</a>#ixzz0h02maZPa
[5] <a href="http://www.telegraph.co.uk/finance/currency/7307279/Pound-faces-a-savage-reaction-if-deficit-cut-too-aggressively-UBS-warns.html">http://www.telegraph.co.uk/finance/currency/7307279/Pound-faces-a-savage-reaction-if-deficit-cut-too-aggressively-UBS-warns.html</a>
[6] <a href="http://uk.reuters.com/article/idUKLDE6201FR20100301">http://uk.reuters.com/article/idUKLDE6201FR20100301</a>
[7] <a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aVDvzOH9wSks&pos=5">http://www.bloomberg.com/apps/news?pid=20601087&sid=aVDvzOH9wSks&pos=5</a>
About Vince Stanzione
Vince Stanzione is a self-made multi-millionaire based in Europe. Beginning aged 16 at NatWest Foreign Exchange in London, he quickly made his mark and then left to form his own company, since when he has been involved in mobile communications, premium rate telephony, interactive gaming, publishing and television and financial trading. He currently lives most of the year between Spain and Monaco and trades his own funds, mainly in currencies and commodities. He also teaches a small number of students and produced the best-selling course on Financial Spread Betting.
Vince Stanzione is the author of 'How to Stop Existing & Start Living' and 'Making Money From Financial Spread Trading', is the Spread Betting Expert for Growth Company Investor and writes monthly columns for The City Magazine, Canary Wharf and Vicinitee Magazine.
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