Wednesday, August 08, 2007

Folding Green

As Harry recently commented, the U.S. stock market isn't always the first place to which one should look to invest. Harry mentions real estate, but look at this one-year chart of Japanese Yen per US$:

Now consider that foreign exchange traders can be leveraged up to 400:1, and it's easy to see the makings of a dynastic fortune - IF one has the Soros touch.

Almost nobody does.


Blogger Mike Beversluis said...

That's kinda a big if, no?

August 08, 2007 6:42 PM  
Blogger Harry Eagar said...

Even International Capital Management got hung out to dry, despite 2 Nobelists working out their strategy.

After being rescued, ICM came back and made more piles of money, but that was subsidy, not smarts.

It doesn't matter how good the longevity pill is if you die every now and then.

Currency is only for the biggest boys.

People who rode the yen up from 360 to 120 in the mid-'80s made a lot of money, put it into Hawaii real estate and were all bust by '96.

August 08, 2007 10:52 PM  
Blogger Mike Beversluis said...

The average investor thinks they aren't.

An old gf is a currency trader for Singapore's trust fund. She said she was thrilled if 60% of her trades resulted in a net gain. Her advice, passed on from her veteran boss, was to stick to index-funds and trust in the magic of compound interest.

August 09, 2007 6:57 AM  

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