The carry trade — almost wordless

November 28, 2011

The idea

Borrow in a currency with low interest rates, lend in a currency with high interest rates.

The image

Photo by Patti via stock.xchng

The question

Am I wrong?

Subscribe to the Portfolio Probe blog by Email

Latest posts

Leave a Reply

  1. Steven 2011-11-28 at 16:29 - Reply

    Except most of the time you get the cheese. The carry trade has been remarkably fruitful, even considering the periodic crashes.

    http://www.nber.org/chapters/c7288.pdf

    • Pat 2011-11-28 at 16:51 - Reply

      Steven,

      Thanks for adding the reference.

Related posts

  • Market beliefs

    April 4, 2011

    Friday was a day to fool others.  Every day is a day to fool ourselves. Primed to know The video gives a great example of how knowing what to [...]

  • Which way is the future?

    March 14, 2011

    In the Aymara language the past is in front and the future is behind. It is rare for languages (at least existing ones) to have the metaphor turned this [...]

  • An investment lottery

    February 28, 2011

    Can fund managers capture money that is now gambled away? Investing versus gambling A clean, though imperfect, distinction between investing and gambling is: if the expected return is positive, [...]