July 12, 2007

Want to make some serious money? Buy yen now.

Thousands of investors have cashed in on Japan's low interest rates - the lowest in the world - and the Bank of Japan's reluctance to raise them for fear of deflation.

These investors, many of them ordinary Japanese housewives, have managed this through what is known as the "yen-carry trade".

Here's an example of how it works.

It's a win-win investment. But is it substainable?

According to Randall Forsyth of Barron's Online, the answer is no:

In today's markets, the ultimate contrarian bet would [be] to buy yen. Were these yen-carry trades… to be reversed, these effective yen short sales would have to be covered, meaning yen would have to be bought."

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July 5, 2007

Risks Involved In Making Money From Home

Making money from home is definitely a dream many of us share. Why work for someone else when you can work for yourself, set your own hours, and call all the shots?

The trouble is that dream-seekers like this often jump into a "make money from home" program without thinking about all the risks involved. For example, do you have a good enough skill base for the business you are considering?

Are you getting into a home business just for some quick money without enjoying the work that's involved in that business?

There are risks involved when starting a home money making business, and if you are aware of these risks, then with careful planning, you can avoid some problems you may encounter along the way.

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