Many things I enjoy; the ocean, seasonal foods, relationships, good movies, and even video games; come in cycles or waves. One good film will often be followed by many sub-quality ones. A fun with a friend or loved one is often followed by distance and long periods of no contact. An excellent video game comes once every year or so, leaving a hard void to fill.
Right now the USD and the Japanese Yen are performing the same dance. I can buy $1.00 for only 95 yen, as of today. That is a 25% increase in buying power for the yen since 8 months ago. The yen has not been this strong against the USD since 1993. So what does this mean for me person? I have been thinking about some options to take advantage of this. And by "take advantage" I of course mean economic speculation. There is no guaranty the future USD will be stronger. It could continue to get weaker.
Thinking about many possible future outcomes, the greatest benefit for me would be to replace by US student loan (at 4%) for a Japanese loan (at 2%). This would also save $$$, not having to wire money overseas to pay my loan. I will be talking to my bank about this, to see if I can even get a loan.
1 comment:
It seem like a good ideat convert your dollar loan to yen while the yen is high, especially if you can get a lower interest rate. Assumming you pay is constant. Maybew the dollar will drop some more! Even if you can't do the loan conversion, it seem sto be to your advantage to pay it off with yen as best you can.
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