Predicted weaker pound....

PauliPauli

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/05/cnhsbc105.xml

If prediction is anywhere near true, what is best way to move forward in terms of transferring some savings into foreign currency then convert back in 18 months?

DocProc

The article mentions how the UK£ has been the darling of the yen "carry trade", drawing in speculative flows from investors in Japan and funds able to borrow at near-zero rates in Tokyo to take advantage of the 5pc interest rate spread.

It warns that the flows are likely to reverse abruptly as the UK economy slows and the housing market tips over, both of which are heralding lower interest rates - perhaps in the new year.

Hot money deposits in Britain have ballooned fourfold in a decade to £4,000bn. "What we have is an enormous liability. People have been very happy to park their money in Britain because of the high interest-rate culture and the country's reputation for sound management, but if you start to unpick that, it can go very fast. These investors are fickle," he said.

Obviously, one would think that investing in the Japanese Yen could be one such suitable place to park your money ready for it.

However, here is a warning:

http://www.investmentu.com/IUEL/2007/20070216.html

It advises how it might be better to buy shares in Japanese exporters:

Leading Japanese exporters include:

• Toyota (NYSE: TM),
• Canon (NYSE: CAJ),
• Mitsubishi (OTC: MMTOF),
• Sony (NYSE: SNE),
• Honda (NYSE: HMC),
• Nissan (Nasdaq: NSANY) and
• Matsushita (NYSE: MC).

rail.link

DocProc wrote: »

It advises how it might be better to buy shares in Japanese exporters:

Will any broker deal in Japanese shares ?

If not, could you recommend one ?