With the AUD hitting more highs recently are investors here doing anything different? eg. Paying down foreign debt, investing (or preparing to invest) overseas, buying foreign currency?
Andrew
itsandrew
Go as far as you can see and you will see further.
The strength of the dollar has certainly raised my eyebrows Andrew. Personally I have started investigating investing in US Property through a SMSF, so hopefully in about 6 months time when I am close to being ready and educated enough the strength in the dollar will still be there.
The high $A has come full circle. Back in 1974 when I first arrived in Australia it took $1.50 U.S. to purchase an Aussie $.
I started in July 2009 using the rent money from my properties in our Super Fund which are paid out to build a reserve of Gold Bullion so that 5% of our super assets will be in Gold Bullion.
Gold Bullion long term is a terrible investment. What it is …is a great hedge for the properties and for the eventual decline in the Australian $. The Australian share market only represent 2% of the world equity markets so a strong Aus $ for the long term is unlikely.
Regards NR
Hi NR,
I think it will be temporary as well. How long temproary is I'm not sure (short to medium term is my guess. 12-18-24 months?). Two things I believe is that 1) Australia is a solidly performing economy with interest rates significantly higher than the US. This will keep a tendency for the AUD to remain higher. 2) given Australia has a high level of export in primary produce and resources the government will want to keep the dollar lower (I think they would like it around .80). How much they can influence the market is a separate question. So predictions I have heard that the AUD might go to US1.20 is a bit premature.
I also think gold will be strong unbtil the USD recovers.
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi all,
How can you not do something in US. We see the big retailers complaing, but they should buy into the market as well.
We've been advising to stay local though, and generate money into Australia.
Hope to hear more about this!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
