Fancy a gamble? Try Greece on for size…

Throw away all of your Forex trading dreams, trading schools promising big returns, and investment guru newsletters – there is now a real way to make 50% per year.

Greek Bonds.  

That’s right, you don’t need all of that junk, you can just loan money to the Greek government for two years at the exorbitant rate of 49.9%. Bloomberg sums up the important notes rather succinctly:

Greek bonds dropped, with 10-year yields climbing as much as 46 basis points to a euro-era record 19.78 percent, while two-year note yields added 215 basis points to 52.53 percent. The yield spread between Greek 10-year notes and similar- maturity German bunds widened to a euro-era high of 1,794 basis points, or 17.94 percentage points.

Now, there is just one little problem… The Greek government doesn’t have the money needed to pay you back, and will need a further bailout (and then probably a few more after that…) from the Euro Zone (or Chinese?) in order to make good on its debts.

But as compared to the unknown risks trading some other investment with the promise of 50%, these Greek yields look good. Instead of being scammed on an investment guru newsletter or automated forex trading system that works while you sleep – here is a cut and dry risk/reward scenario.  Greece gets bailouts for the next 2 years? You make 50% this year, and 50% the next.  Greece defaults? You lose some to all of your investment.

The ascent of Greek yields has been brutal. One look at 10 year Greek bond yields over the past month shows just how upward-bound things have been as of late, with some noting that the trajectory is similar to what was seen in Argentina in 2001 a month before they faced default.

[Source: Bloomberg]

 So yes, you could theoretically snap up some Greek bonds at these rates, and if things went your way, you’d be boasting some pretty impressive returns on your investment. But for us, risk is just as important as reward, and with the potential for Greek default seeming bigger by the minute, this is one risk we wouldn’t want to take. Would you? their respective subsidiaries, affiliates, officers or employees.

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Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

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