Friday, August 29, 2014

Long Term Position in AUD

The author states his view of why to choose AUD over other currencies for the SGD currency holder looking to park his money somewhere.

I've been doing the same since 2009 when the market crashed and recovered, that year I had allocated a portion of my portfolio to AUD currency, bonds and equities and they now make up roughly 30% of my portfolio. 40% is in SGD and the remainder is split between HK and US market.

I like his blog as it is quite relevant to singaporeans. Many times, we have news telling us AUD is overpriced and it's going to go down against the USD. But many times, most of us have the bulk of our money in SGD denominated assets. We should instead be focusing on what SGD USD(i believe our currency weighting is very heavily towards USD) is doing and then USD AUD is doing and then you will have your answer to the SGD AUD pair.

I hope our local banks start dishing out more SGD related analysis instead of echoing what the global banks are talking about(always in terms of USD).

So when friends ask me what to buy, guess what I say ?
Pretty brainless AAA bet even for Singaporeans – instant carry with massively higher yields. There is little reason for the SGD to out perform the AUD now that the RBA has little onshore reason to cut further after reading into RBA Governor Steven’s remarks last week.

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