As a matter of fact, I thought I am totally free from the recent global financial turmoil. I do not mean I am wealthy enough to waste some money, but I just DO NOT have any assets to be hurt by the international credit crunch.
However, it was only a couple of weeks ago when I got a bank account report from a Japanese city bank, I recognized the aftermath of the disaster has finally reached me.
I opened a bank account at the bank about 6 years ago to save my bonus payment in euro and Aussie dollars. Why did I put my money there in Aussie? The reason was easy -- interest rates! Initially, I planned to buy only euro with my bonus in Japanese yen. But... all of a sudden...somebody inside me whispered a warning: "Mina, Don't you have to hedge risks? Is euro-only saving good enough for you?"
In terms of risk hedges of stronger yen against other currencies --which would lessen my bank account balance in yen eventually-- as well as to earn better profits via differences of higher interest rates, I decided to put the half of my bonus into Aussie...
Yet, it seemed to be OK until September this year. The unrealized profits of my saving in euro and Aussie increased by 25-30% from the initial capital, thanks to weaker-than-expected yen against those currencies and relatively high interest rates.
But the situation converted all of a sudden under the growing concerns on the global credit crunch triggered by the bankruptcy of Lehman Brothers and other related issues.
The latest account report showed my "Unrealized Losses" are now swelling to as much as 10%; Aussie plunged by 40% while euro weakened by 25% against yen during the past two monthes.
I know it's not easy to earn money...... But I learned now that it's SO EASY to lose money in a instant.