Comments on: Fluctuations? Well, fluc you, too … http://7million7years.com/2009/02/28/fluctuations-well-fluc-you-too/ How to make 7 million in 7 years ... Sat, 11 Feb 2012 22:32:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Steve http://7million7years.com/2009/02/28/fluctuations-well-fluc-you-too/comment-page-1/#comment-2404 Steve Tue, 14 Apr 2009 04:27:12 +0000 http://7million7years.com/?p=1670#comment-2404 Well, I am thinking net buyer right(as we would be earning the money in pesos and then need to buy American dollars to be able to spend it here). But then again, some of that will have to remain in pesos and in the Phils, as reinvested into the business,for expansion purposes. Well, I am thinking net buyer right(as we would be earning the money in pesos and then need to buy American dollars to be able to spend it here).
But then again, some of that will have to remain in pesos and in the Phils, as reinvested into the business,for expansion purposes.

]]> By: Adrian http://7million7years.com/2009/02/28/fluctuations-well-fluc-you-too/comment-page-1/#comment-2403 Adrian Tue, 14 Apr 2009 03:45:23 +0000 http://7million7years.com/?p=1670#comment-2403 @ Steve - You're looking for CHANGES in relative currency rates; so the question is: which way do they have to move to help/hinder you, and THAT depends on whether you are a net buyer or seller in each country ... @ Steve – You’re looking for CHANGES in relative currency rates; so the question is: which way do they have to move to help/hinder you, and THAT depends on whether you are a net buyer or seller in each country …

]]> By: Steve http://7million7years.com/2009/02/28/fluctuations-well-fluc-you-too/comment-page-1/#comment-2402 Steve Tue, 14 Apr 2009 02:13:38 +0000 http://7million7years.com/?p=1670#comment-2402 I know I like to Shop The Phils for cloths (as they are about 60 to 75% ) cheaper there than here.And I get some very nice cloths there. ;) I know I like to Shop The Phils for cloths (as they are about 60 to 75% ) cheaper there than here.And I get some very nice cloths there. ;)

]]> By: Steve http://7million7years.com/2009/02/28/fluctuations-well-fluc-you-too/comment-page-1/#comment-2401 Steve Tue, 14 Apr 2009 02:12:03 +0000 http://7million7years.com/?p=1670#comment-2401 This Adrian, is a really really great Post. I never had considered exchange rates in the past, however, since we have businesses,in the Phils(and Plan others in the future) I think we need to be aware of exchange rates. :) If we are earning money in The Phils, and plan to spend it in the U S< with our (American)Money being worth about 3 to 4 times the Philippine Peso, will that negatively affect us? or will it positively affect us? This Adrian, is a really really great Post. I never had considered exchange rates in the past, however, since we have businesses,in the Phils(and Plan others in the future) I think we need to be aware of exchange rates. :)
If we are earning money in The Phils, and plan to spend it in the U S< with our (American)Money being worth about 3 to 4 times the Philippine Peso, will that negatively affect us? or will it positively affect us?

]]> By: traineeinvestor http://7million7years.com/2009/02/28/fluctuations-well-fluc-you-too/comment-page-1/#comment-2405 traineeinvestor Sat, 28 Feb 2009 09:57:59 +0000 http://7million7years.com/?p=1670#comment-2405 I completely agree. Another point on how hard it is to predict currency movements: I spent some time last week comparing forecasts from major financial institutions for some currency pairs that I am interested in. There was nothing even close to a consensus for the currencies I looked at. If the experts produce such diverse opinions, I take that as a reasonable indication of just how hard and how hard it is to make either short or long term predictions (although if an economy is looking in bad shape, that is usually a good indicator that the currency is going to suffer). This doesn't mean that speculating on currencies is pointless - the Yen/NZD carry trade was good while it lasted - but it is risky. I completely agree.

Another point on how hard it is to predict currency movements: I spent some time last week comparing forecasts from major financial institutions for some currency pairs that I am interested in. There was nothing even close to a consensus for the currencies I looked at. If the experts produce such diverse opinions, I take that as a reasonable indication of just how hard and how hard it is to make either short or long term predictions (although if an economy is looking in bad shape, that is usually a good indicator that the currency is going to suffer).

This doesn’t mean that speculating on currencies is pointless – the Yen/NZD carry trade was good while it lasted – but it is risky.

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