<i>"im gonna go long usdyen and buy stocks. its easy money"</i> Yes, that popular tactic will help propel the pending oversold bounce to lower-high failure. The second unwinding will be most interesting indeed.
I think I was misunderstood. My question was this ( forget easy money, just trying to understand if this would be a possible way to avoid USD risk). If, for example, someone from europe wants to invest in the US markets, they can open a US brokerage account and buy and sell whatever they want directly, but if they made 10% last year, they would have actually lost because the dollar fell around 12% against the euro. I know the yen fell by 8 or so (still better than 12), but the amount the european would have paid in interest would have been much lower as well, had he used margin. My question was this, since he wants to buy US equities, could he not do so from jpy us etfs or something similar, so that he would be less likely to lose on currency, and at the same time pay less interest? Or is it necessary that if the dollar weakens against the euro, the yen must too by an approximate same amount?
yeah u can do that, fact is u are only limited to buy what's available on the jap mkt as far as US securities jdrs concern.