THE GAME OF RISK

its alwayz a question, how 2 make more money from the money you have now?? well you have things like FD and investment in shares on stable bluechips and stuff, and the list goes on…

bt it depends basically on the return you’re looking for, your risk appetite 2 be more exact , when you perform a certain investment, the higher the risk you take, you alwayz would deem 2 receive an equivalent or higher return, or it will just be a stupid investment decision…bt obviously,relating risk with return, is merely impossible 2 quantify, hence its a game of advanced speculation…

let me share smtg im planning,before that when people with commitments wana do smtg which involves the game of risk, it should be done with excess cash instead of savings, bt unlike me,my savings is my excess cash..no commitments at this age, and i have a very large risk appetite, one thing i realized saving money is absolutely AWESOME, when all ure FD matures and when u check the balance in your savings accounts after a long time, u get a joy…. achieving a certain accomplishment, it feels good :)

as we know it everyone is talking bout the fall in the currency of GBP! as i checked now its RM4.86… is this the right time 2 buy??

everyone says this is the right time 2 buy and keep….but 2 me NO!! wait for it…!!  i did a little bit of research…well, there's 2  factors:                                                                                                                     1) the GREEK- BAILOUT

2) upcoming UK election

2 cut short the story, Greece is  under debt crisis, and its under da EU…so all da 16 EU nations need 2 help out this country lead by Germany… and when logic comes 2 play, when money comes out from da nations 2 stabilize its neighbour what can u expect?? what most people don’t understand is London is part of EU but it uses its own currency which is GBP instead of EURO! Pound’s will boost if EU policymakers announce a finalized and expanded Greek bailout as expected…but then there's da story of pressure where da election is cming…so they naturally have 2 hold back first!!

 

talking bout da elections on da other hand, in that week of election, guaranteed da GBP will go down, but its up 2 u 2 monitor it. why???  new fiscal policies will be implemented and a possible restructuring…this will send the sterling down…usual election aftermath!!

QUESTION: how 2 buy????

1) buy GBP in cash  2) open a foreign FD acc

im looking at this, its from PUBLIC BANK…

Foreign Currency Fixed Deposit Rates

Foreign Currency Fixed Deposit Rates  as at 30/04/10 3:45 PM

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Currency	1 Month	3 Months	6 Months	12 Months
USD	0.27	0.35	0.50	1.00
GBP	0.42	0.55	0.70	1.10
AUD	4.25	4.40	4.75	5.25
SGD	0.30	0.40	0.50	0.60
JPY	0.10	0.15	0.30	0.60
EUR	0.30	0.38	0.65	1.00
HKD	0.05	0.10	0.20	0.50
NZD	2.55	2.70	3.10	3.55
CAD	0.26	0.35	0.50	0.80
CNY	0.70	0.75	0.75	0.80

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NOTE:
1.	Minimum Placement = RM10,000 equivalent of foreign currency amount.
2.	Rates are quoted based on 365 day count.

though looking at it, im nt placing it in this FD for da interest as it is low, bt it is smtg than ntg…and then again, its not a short term gain, looking at it, if it goes down 2 RM4.50 further…than that’s the time 2 buy and making a profit of RM0.50 is sufficiently enough for those short term players,

calculation : im putting in RM10,000 of my money in da FD.(let say the rate is RM4.50)

I WILL HAVE GBP2222, and thus if it rises 2 rm5.00, ill be making a 10% interest…but of cause, its speculation with risk involved… pounds went up 2 rm6-7 last time but alwayz remember, HISTORICAL PERFORMANCE IS NO GUARANTEE FOR FUTURE PERFORMANCE!!!

 

written by: lamev