Re: Puzzel of interest
Brett Robson wrote:
> On Thu, 05 Jun 2003 11:36:06 +0900, Declan ...
>
>>Brett Robson wrote:
>>
>>>On Wed, 4 Jun 2003 11:50:01 -0400, "Kevin ...
<snip>
>>>(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.
>
> OK we will keep it simple.
>
> 1. The yen is at a 2 year low to the dollar.
>
> 2. Daily Yomiuri 5 June 2003
<snip>
But thats the point. Its easy to show that anybody who followed Kevin's
advice of putting the equivalent of 600,000 yen into a checking account
with 1.31% APY in Sepponia as per Kevin's suggestion would have lost
even more money than had it been left in Japan. Retrospective "wisdom"
is like that. Its not so easy to recommend where to invest/deposit now
with a view to four months down the track. Real exchange rates and
hedges are a bitch.
--
"All FDR undid was the value of the dollar"
Kevin Gowen (really)
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