The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (28172)	3/8/2005 8:22:09 PM
From: benwood	Read Replies (1) of 110194

Just because the US dollar declines does not mean the investment itself decline in terms of yen. If I'd converted my energy stocks into yen before the run-up 18 months ago, I'd have had X yen. But if I converted them today, I'd have 1.2X (or something like that). JW never said he had no currency risk; he said he came out ahead in spite of it. What JW is arguing would be clearer to me at least with a concrete example -- I'm only assuming that he can achieve the 30x leverage as he said with a future's contract. I've no doubt that if somebody removes the apparent risk out of the system (Greenie & US interest rates, for a while at least) that one can exploit that. Somebody will get blown up at some point though, showing that the true risk was still in the system somewhere else.

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