YoDollas
Ben and all you other investing gurus out there, I got four words for you: get your rupee on. The equivalent of the fed in
posted by Gabe at 8:53 PM
Friday, February 09, 2007
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5 Comments:
Two questions:
Does India have their own version of an FDIC?
Aren't index funds and mutual funds earning a higher rate of return with less risk since they aren't vulnerable to fluctuations in the exchange rate?
These could very well be stupid questions but Finance was never my specialty.
2/10/2007 11:11 AM
I'm actually not sure about the FDIC question. I was doing a little research last night and it was inconclusive. The rates quoted are listed on the Bank of India's website. I would guess that your money is about as safe their as in a AAA bond and further suspect that short of a government overthrow (or something radical like that) you would not see the Bank of India default. Anyways, I was putting this up more as a joke than an actual suggestion, but the idea does have some potential.
In our finance class we were discussing, how in recent years (about the past 15) the US govt has consistently been able to earn greater returns on its outstanding assets than it pays in its liabilities. This is due to the appreciation of the Euro (which is due to us borrowing so much).
The rupee has also been appreciating significantly compared to the dollar recently. (Maybe it’s the case that the dollar is depreciating compared to everything else, but we wouldn't want to say that in finance classes in this country, unless it happened over 50 years ago.) My feelings on the government spending is that its not going to slow down anytime soon, as our boys are still over seas, so the depreciation should continue. I was figuring since India is having this economic crisis and offering extraordinarily high return rates(for safe money), we could get in on the action and cash in on the favorable exchange rate and the high interest. The key would be getting a hold of some rupees.
As far as index funds they only perform as well as the market, probably around 7%, obliviously some do better some do worse and this is risky money. Mutual funds vary over time, and I would say the best performance of all the funds would be around 11%(in good years you may have some higher), but some mutual funds can remain stagnant or even lose money. As you probably know funds are just a portfolio of stocks, bonds, and foreign currencies(!).
2/12/2007 7:24 AM
Here's a question. How long has Windows had that shitty little calendar you can pull up by double clicking on the clock? Well, I have been using the Google calendar lately and I am ready to throw out my paper calendar. It's so easy to access and I can pull it up anywhere I get internet access i.e. everywhere....this is what technology should be doing for me.
I would guess that its pretty similar to the calendar the mac has, and probably Vista's. BTW does anyone have Vista yet?
2/12/2007 7:29 AM
Yeah the Windows XP calendar blows. Vista has a new one that looks a whole lot like iCal in OS X. I export my iCal to Google Calendar so I have my calendar everywhere, I love it.
My father has a few copies of Vista due to the MS thing he is in but he hasn't bothered installing it yet. Apparently if you have slightly older hardware and especially if you have a custom built machine it can be a real pain in the ass getting Vista to work.
2/13/2007 7:55 AM
I am still unsure what the advantage to Vista is. XP works fine for my needs.
I use my Outlook calendar for my calendar needs. It is nice, it syncs with my PDA so I have my appointments when ever I need to check them.
As for the rupees; humm, my only concern (i think it has been stated already) is the security. FDIC and what not.
Very Interesting though!
2/13/2007 10:48 AM
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