Finance is about managing and allocating risk, and one of the most
important risks in the corporate world is the risk of looking slightly
stupid. Not because it's the worst thing that can happen to you, but
just because modern life presents so many opportunities to look slightly
stupid. If you can cut back on those opportunities, life is so much
more pleasant.
For instance, if you're a corporate treasurer or mutual fund manager, you might need to convert 10 million euros into dollars today. But what time today? Ugh, what an awful question. If you bought dollars when you got to work today at 8 a.m. in New York, when the euro would buy around $1.128, then by 3 p.m., with the euro around $1.1325, you'd look, you know, slightly stupid. Not catastrophically stupid. Not like the guy who decided to stop hedging Swiss francs the week before the Swiss franc exploded. But you bought $11.28 million for your euros, and you could have bought $11.325 million if you'd waited a few hours. You lost $45,000. You look a little dumb.
Read more at Click here / www.trade4x.net
For instance, if you're a corporate treasurer or mutual fund manager, you might need to convert 10 million euros into dollars today. But what time today? Ugh, what an awful question. If you bought dollars when you got to work today at 8 a.m. in New York, when the euro would buy around $1.128, then by 3 p.m., with the euro around $1.1325, you'd look, you know, slightly stupid. Not catastrophically stupid. Not like the guy who decided to stop hedging Swiss francs the week before the Swiss franc exploded. But you bought $11.28 million for your euros, and you could have bought $11.325 million if you'd waited a few hours. You lost $45,000. You look a little dumb.
Read more at Click here / www.trade4x.net
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