Email of the day (2)
Comment of the Day

January 18 2013

Commentary by Eoin Treacy

Email of the day (2)

on Yen hedging
“Here is another suggestion for your collective that have the ability to do so.

“There is nothing difficult about this.

“Just borrow Yen and buy Nikkei &/or Topix ETF.

“You get about 2% dividend, your cost of funds is 1%. So, you have a 1% carry to wait and see if you are right.

“It all goes wrong if Yen appreciates and Nikkei goes down. However, Indices and currency movements aren't as dramatic as small cap stocks. So, you'll be able to hold the position.”

Eoin Treacy's view Thank you for this suggestion which is an appropriate strategy for larger investors

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