Reynold

4 Comments

    • Lehman Bros. Enters the ETN Market with 'Opta' Commodities, Private Equity [view article]
      Gosh, top ratings from S&P and Moody's--how reassuring! The risk of Lehman Bros. going bankrupt may be "small", but the default risk here has to be somewhat less small. ETN's backed by a brokerage house? Sorry, no thanks! Feb 20 06:01 PM
    • Claymore Fund Closings Not Good for ETF Industry [view article]
      You may "believe you're write," but your being right is not at all convincing. You are defending the indefensible. The "industry" has slung hundreds of funds out there, and only a few of them are "great products". Many are just niche garbage. Die, ETFs, die! Feb 02 08:58 PM
    • ETF Update: Waiting On China's Currency Release, Less Than Green ETFs, Getting ETFs Into 401(k)s [view article]
      "Investing in China's yuan doesn't have an easy or direct path"? Oh yes it does! You can purchase a CD denominated in Chinese yuan (renminbi) from Everbank. It's listed under Products > Foreign Currencies > Worldcurrency Access Deposit Account > View Currency Rates. It does not pay interest. Dec 13 11:03 AM
    • Ben Stein, Global ETFs and The Dollar [view article]
      Is it possible that Stein is saying that the stocks the ETFs invest in, and not the ETFs themselves, are denominated in foreign currencies? I think he meant that these ETFs are non-dollar-hedged, so their returns will be affected by swings in foreign currencies. Which has happened to great positive effect the last several years, as the dollar has fallen.

      The biggest, and most foolish, macro bet one can make on the future of the dollar is to put all one’s eggs in dollar and dollar-hedged baskets. Instead, one should link one’s investments proportionally to the entire global wealth, and thereby to a basket of major currencies. This is not speculation. It is diversification. Over the long term, even though currencies will rise and fall, results will probably be better than patriotically betting on one’s homeland currency. Lucky is the rare investor who has the foresight and skill to pick the single currency that will win the long-term race. Otherwise, holding assets in various currencies, by investing around the world, in proportion to GDP or market cap, will help insure against financial ruin.
      Oct 15 09:36 AM
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