We at The KIN Consortium recently published articles discussing the advantages of manufacturing in the KSA. The fact is that we in the region are blessed with a lack of natural disasters, and a location that is midway between Asia & Europe. We believe that the Kingdom is the ideal place for the development of automated robotic manufacturing facilities, and we merely propose that the various Japanese manufacturers consider moving to our location. We have a liaison office set up just for such an occasion called Saudi Arabian General Investment Authority (SAGIA), we are sure they would be happy to assist you with any and all of your endeavors.
Now that we have discussed the macro solutions to the macro problems, let's take a moment to discuss various investment strategies to profit from the volatility in Japan. In the recent video that we mentioned earlier on our website, we discussed a product of Morgan Stanley that's called iShares. The specific one that pertains to our discussion of Japan is the EWJ iShare. Its top holdings include Toyota & Honda, amongst other Japanese brand names. On March 17, we bought a long straddle on the EWJ which is "at the money" purchase of both call & put option contracts. That basically allows the purchaser to profit from both volatile rises and falls in the Japanese financial markets. We actually bought the contracts that expire in September of 2011, which allows us to sell the contracts at any point of time between now and then. This type of investment strategy is an elegant way of profiting or hedging portfolio risk. Please keep in mind that one must always speak to their respective investment advisers prior to making any investments, so that they may determine their level of suitability for the investments. The aforementioned strategy profits from extreme volatility in the underlying assets, and it demands the undivided attention of the investor.
We recommend all our readers stay vigilant in all your investments whether you are investing in long-term manufacturing projects, or short-term hedging strategies.
— Khalid I. Natto ([email protected]) is chairman & CEO of The KIN Consortium.