The ultimate investment: buy sovereign bonds or currencies of troubled countries?

Discussion in 'Economics' started by crgarcia, Sep 9, 2008.

  1. * Post war Germany and Japan.
    * Tequila effect Mexico.
    * Post Berlin-Wall-Fall Russia.
    * 98 Asian Crisis
    * Corralito Argentina

    They all have recovered in the long run.
    Even if they had temporary defaults or currency devaluation, the high interest paid on bonds purchased at a deep discount, makes it very good LONG TERM investments.

    Alternatives for the future:
    * Post coup Zimbabwe (we are not there, yet)
    * Iraq
    * 2010+ Europe
    * Post mortgage meltdown USA

    By the way right now I'm going all-in in the latter one.
  2. I guess if you want to gamble with money outside of this country, go for it. I would never allow my money to leave my sight further than a button away, and never ever overnight. Just my style of risk management.
  3. Gamble?

    Banking dynasties like the Rothschilds, invest heavily this way.

    And their wealh continues to increase.
  4. Let them do their thing. At higher ranges of capital, you would have to settle for lower ROI, like they do. No thanks, for me.