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Gecko

Gecko

Sweden

November 22, 2007

 

     You have heard about it, it have been really common the last years.  Becouse of the low borowing rate in Japan and the hig Rates in USA, JP 0,5% US 5%.               but how does it work like?  you borrow money from Japan and you change the cureency to dollar and invest in rent papers,  then you invest the money in rent paper and benefit from the middle diferens.  That way you get a stedy return.   

But there is riskes to, the big risk is Curency change,   if the Yen get stronger , you may lose alot of money, but you can benefit to, if the dollar get stronger and yen get weeker  it have an ladder effect.  in order to use this trading method you need alot of money to make some gain, the ones that often does this is institutional investors and major big players on the world market

i don't recommend private investors to do this kinda strategies.   but if you live in Japan it's a good time to borrow some money an buy worldwide stock

 

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