"Currencies are the single biggest risk [for investors] at the moment. I'm scared about what's going on," said David Jane, head of equity investment at M&G.
A fall in the cost of speculating in currencies is allowing hedge funds to make multimillion-pound bets against the euro "for just the price of a cup of coffee in Starbucks", one of Britain's leading investment managers warned today.
David Jane, head of equity investment at M&G – which controls more than £170bn on behalf of small investors – said it now costs just £1 a day to speculate in £1m worth of currency.
"Currencies are the single biggest risk [for investors] at the moment. I'm scared about what's going on," said Jane, who has bought insurance against currency movements for much of his portfolios.
As the Greek government struggles to impose an austerity programme amid widespread strikes by public sector workers, its future membership of the euro could well be decided by hedge funds and investment banks in London. Every day, global dealing in foreign exchange totals around $4tn, 90% of it purely speculative, and London traders dominate the market.
More: http://www.guardian.co.uk/business/2...-investor-risk
AtW's comment:
A fall in the cost of speculating in currencies is allowing hedge funds to make multimillion-pound bets against the euro "for just the price of a cup of coffee in Starbucks", one of Britain's leading investment managers warned today.
David Jane, head of equity investment at M&G – which controls more than £170bn on behalf of small investors – said it now costs just £1 a day to speculate in £1m worth of currency.
"Currencies are the single biggest risk [for investors] at the moment. I'm scared about what's going on," said Jane, who has bought insurance against currency movements for much of his portfolios.
As the Greek government struggles to impose an austerity programme amid widespread strikes by public sector workers, its future membership of the euro could well be decided by hedge funds and investment banks in London. Every day, global dealing in foreign exchange totals around $4tn, 90% of it purely speculative, and London traders dominate the market.
More: http://www.guardian.co.uk/business/2...-investor-risk
AtW's comment:
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