Re: Puzzel of interest
Brett Robson wrote:
> On Wed, 4 Jun 2003 11:50:01 -0400, "Kevin ...
>
>>>2. Where should I have put the money?
>>
>>Outside Japan. My checking accout has a 1.31% APY. Put the money there.
>
> The US dollar is at a 2 year low to the Yen.
>
> http://au.finance.yahoo.com/m5?&a=1&s=USD&t=JPY&c=2
>
> So you would seriously suggest someone put money in US dollars to get a 1.3%
> return in the face of a strong possiblity of an adverse movement in the exchange
> rate?
>
> (if you don't understand the above, I'm sure Declan would be happy to fill you
> in).
Actually I don't think I would be. Real exchange rates and hedges are a
bitch.
--
"All FDR undid was the value of the dollar"
Kevin Gowen (really)
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