Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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From: Haim R. Branisteanu	1/15/2010 3:09:09 PM
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Example of a successful "investment for the long term" In 2005 I bought GE notes in AUD - GECAUF 5,75% 18-jan-2010, maturing on coming Monday, January 18, 2010. AUD/USD at the time was 0.7570 the note payed 5.75% interest which I did not invest but hold in AUD, earning some interest. Since the AUD appreciated around 22% v the USD My total return on this investment over 5 years was slightly above 51% inflation adjusted gain I estimate is in the 30% area On the other hand if I would have invested in the US economy via the S&P index I would be under water loosing money over the same period 5 year treasury notes returned something in the range of 18% to 20% - this investment barely coped with inflation and I would be FLAT in buying power MSFT, INTC, DELL, IBM, BMY, CAT, MMM, even MRK etc., all underperformed the above GE bond

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