Aud is dropping against usd for 12 days consecutively. What is the best way to conserve my savings of 100k? I had been told House market is bad. And i don't know much about Share market. Bank is not giving much interests. What are other options?
AUD is dropping 12 days consecutively. What to do?
Cataclysm on 05/08/2019 - 17:33
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BuyBorrow some USDJPY
USD has dropped 5% in the last two weeks against the JPY. Really good time for JPY at the moment.
@DarthAntz: As in to buy or sell? I went over there for a holiday about 10 years ago and ended up with about $1500aud worth of yen that I didn't spend. I've just kept it hoping for something to change in my favour..
@Spic3y: Its been quite good this year to sell that yen.
Good time to earn yen! Not so good to travel to Japan, but you've also already got money to spend.
Short the yen baby.
Too late now.
Australian trade balance smashes forecast. Hopefully everything will pick up from here.Nekminit 67c
I ordered something from the US just over a week ago and got refunded yesterday (they couldn't get stock for 3 months), free profit!
You forex trader you!
I hope you plan to declare that CGT on next year's return!
Do you paid tax on that kind of investment ?
Do you live in your own (debt free) home or parents? Spend some money a holiday, worth every dollar even if your bank balance drops a bit.
How does that work if my dollar is only buying 67 U.s. cents?
Travel to Venezuela, Syria or South Sudan.
Travel around AU?
Might be a one way trip tbh.
Just don't come to OZ after travelling to these places, or Dutton's henchmen will get ya. hell of an explanation for the judge -re not being a 'foreign figher'.
Username checks out
Bitcoin
I actually agree on Bitcoin, but only a little bit (what you can afford to lose)
Gold and silver are also good stores of value in uncertain times
Panic!
Where should I do this?
At the disco
I CHIMED IN WITH A HAVEN'T YOU PEOPLE EVER HEARD OF
it's much better to face these kinds of things with a sense of poise and rationality
AT THE DISCO!!!
Aw man….
Panic after tomorrow’s RBA’s announcement.
Lower rates again?
Pretty sure the IMF was pushing them towards negative interest rates (will try and find the article).
The RBA will NOT cut
On the Streets of London….
and Birmingham
In the interest of completeness it's also on the streets of Carlisle, Dublin, Dundee, and Humberside
Way too much panic for me…
Pretty much in the same boat with sizeable amount in bank with pitiful interest and not sure what to do with it. Property market not great at the moment. Not willing to risk forex/crypto/stock options. Will be interested to see what people suggest.
Honestly the answer is forex, not as a money-making enterprise, but as hedging.
Might be a bit too late for that as majority is in GBP already… sigh
Ouch. That's uh… possibly one of the few places worse than AUD to have kept it.
GBP? Seriously? From before the Brexit referendum, or after?
There was an immediate 10% (or so) crash in June 2016, and a very steady decline ever since.
@Roman Sandstorm: Much before. Basically sold property in UK about 3 years ago and never did anything with the funds. Been siting in bank account since. Moved over here over a year ago but didn't bring the money over.
Won't be purchasing property here till market stabilises and get PR to avoid things like the additional 8% foreigner stamp duty surcharge and/or if no PR then won't be staying here anyway.
So, back to a huge chunk of cash sitting precariously in a bank account…
@Hybroid: It's a good problem to have, never easy deciding on what to do with it.
At least you can put it in a high interest account while you decide.
I actually have the same problem. Just now I have decided to bite the bullet and start transferring over my GBP. Did 20k today, and will do the rest over the next month or so.
My plan is to put a lot of it in ratesetter and selfwealth. I basically CBF with the property market. Will look at it in maybe 5 years.
I think the main point is to get any decent holdings out of GBP well before October. I already have my income in GBP so I am too exposed to it. The plus side is that if something odd happens and Brexit causes the GBP to strengthen, then I get a free pay rise! But it more likely to tank, like it has been since the past decade.
This is when less is more, just do nothing, it is better than losing money.
In general don't disagree but doing nothing literally is losing money due to inflation and currency dropping in value.
Yes it sucks but risk free fixed income products all have low yields, so unless you are willing to take on risk, there are no alternatives anyway.
What does sizable mean?
Nothing, that's what.Holding cash is a speculative position.
If you think the world economy is going to take a dive, then invest in something that will appreciate if that scenario does play out.
Someone early suggested a diversified portfolio, maybe do that and don't worry about it for a few years.
Term deposit. Slightly better interest rates.
ALT F4
What does tha
If your savings are in AUD and you are based in Australian the FX rate for the Aussie is of no consequence. Unless of course you are an importer of foreign goods or planning a holiday overseas.
Directly no. But if, for example, you were looking to buy property, "cashed up foreign buyers" now become more "cashed up" comparatively speaking.
On the other hand, our exporters and export industries should benefit, which should be good for our somewhat mediocre economy in recent years, and especially give a boost to our farmers.
OP is talking about "conserving" his/her savings of AUD100,000. If OP wanted to take a punt on increasing the AUD100,000 value then there are numerous options available.
Otherwise, regardless of the FC value of the AUD, his/her AUD100,000 will still be worth AUD100,000 tomorrow here in Australia.
The underlying future buying value of his/her AUD100,000 is a whole new topic, which could run into pages.Otherwise, regardless of the FC value of the AUD, his/her AUD100,000 will still be worth AUD100,000 tomorrow here in Australia.
Technically correct, but as you point out:
The underlying future buying value of his/her AUD100,000 is a whole new topic, which could run into pages.
The details might run into pages, but the TL;DR would be: "The same AUD100,000 would be worth less".
Several large regional towns in NSW and QLD, are set to run out of water in next 6-12 months. Will be interesting to see how many farmers we actually have left in a few years.
This is actually an area I don't mind government subsidies going to to sustain - primary production isn't just "a part of the economy" (it is, an important part), but self-sufficiency in terms of basic foodstuffs is strategic consideration 101, in the same category as (heavy) fuels, potable water, and energy generating capacity.
@HighAndDry: If a business or business practices aren't sustainable then no amount of money is going to change that. Better to invest in figuring out how to conduct agriculture sustainably in an increasingly hostile environment (because it's not like there's magically going to be more water in the future).
"cashed up foreign buyers" now become more "cashed up" comparatively speaking
…or not, if they use currency that also gets weaker against USD - see NZD for example ;)AUD has been dropping against USD for quite some time and it's likely to continue, IMHO
China is now allowing its currency to devalue, which won't help inflows to Australia.
Or the RMB - as they're letting it drop to win their trade war with the US.
What is the best way to conserve my savings of 100k?
You want to maintain 100k of AUD while it drops against other currencies?
Just, leave it?HODL
Dude, you just missed 12 days of profit.
If the property market is bad, isn't it time to BUY? Why buy HIGH? Buy low and SELL high! Also credit is cheap. Trust me, I'm trying to buy something now and prices are going UP for good ones due to lack of stock.
never catch a falling knife ?
If you buy a house and the value falls, you still have a house that you can live in or rent out.
Investments go up and down. You only have a problem when you want to convert back to cash again.
I've had investments drop crazy amounts (Flight Centre 2008). I think I paid $20 and the dropped to <$6 so I bought more and then they dropped to <$5. I held them because people still had to travel and Australians were travelling everywhere because we had money and there were travel bargains out there.
I took the dividends.
They were my first 10-bagger (1000% profit). I've sold 75% of my holding but what's left gives me a 36% dividend return on my base cost.Wow, looked at the historical values and you have done well.
Respect on the balls to back it after losing 75% of its value. Clearly your decision has paid off.
@andyfc: I was beyond the point of no return.
I've done similar recently with Platinum Asset Management and it probably hasn't been a smart decision. Not every roll of the dice is a winner.
Similarly if you bought stocks in any of the major Australian banks in 2008. None of our banks were at risk of going under, but their share prices still dropped a lot.
@macrocephalic: I did buy banks but not much $$ invested and I sold out of ANZ & NAB quite early as they never failed to disappoint.
I only had 100 CBA (recently bought more) and a nice chunk of WBC from when they bought SGB. Recently bought back into NAB because of the crazy high FF dividend return which may drop a bit but that's OK.
never catch a falling knife ?
No-one leaves a knife on the floor. It gets picked up again.
No point trying to judge the bottom. Better to buy and watch it fall by one-fifth only to climb past it again in a few years - than to wait trying to judge the bottom, miss out because everyone is fighting for the limited properties (because people then hold onto them waiting for a rise) and have to pay more anyway to secure the 'bargain'. You could have also been collecting rent for 1-5 years.
But it depends where you're talking about too… All RE talk usually centres around capital cities. And after the RE boom 10+ years ago, things began to 'fall', yet properties out of Syd/Melb didn't change much at all, and if anything, went up slightly.
@lainey
The good properties will always maintain value and sell quickly.
When I was buying last year there were so many poor properties (bad layout, no sun, noisy, obviously bad neighbours), you could see they would be on sale a long time in a slow market. When there's no FOMO those dogs hang around forever.
Buy shares in an ASX company with $USD revenue
Yep - I'd potentially be looking for any exporter-based companies with a product that is in-demand - be it mining, medical, tech, or produce/livestock. I was going to say something like Bellamy's Organic or A2 Milk, but their ties to Chinese market are going to hurt them with US-China trade war.
Short the ASX and AUD, make sure you leverage it to the max too.
Simple. PANIC!
Nobody ever panics enough. Now is the time to get the tinfoil hats out, move onto the doomsday bunkers and wait for sky net to do its thing before you emerge victorious as the last human!
THE AUD dropping doesnt affect you locally.
Only when you buy imported goods or travel overseas.
And almost everything we buy is imported.
So if you are thinking about buying some big ticket items do it now!Theoretically a cheaper AUD should push the local stock market up just as lower interest rates do.
First step: steal underpants
Phase 2: ?
Apparently cause new gfc by underselling underpants to undermine other underpant manufacturers
I am in a similar situation so have decided to:
- renovate my house, this will add value to and give me some enjoyment from it from now to when I sell
- install Solar Panels and solar hot water, the return on investment far exceeds the 2.4% I get from the bank
- make voluntary super contributions to the max $25k and claim it ( I am self employed ). Depending on your marginal tax rate that's an instant 15%+ return, compounding to retirement ( 15 years for me . Sure it can go up and down from here but at least its managed by professionals with hedging strategies, diversification etc and it would be fair to assume in 15 years it will be worth more than today.
not an earner but perhaps update my car, I have never owned a new car and have wanted to, the car industry is in a recession so if I can get a car 10% cheaper than a year ago its sort of like a 10% return even though it's a depreciating asset.
Anything you can think of that by spending on it will save you money and the return is greater than say 3%
Those sound like great strategies. I have quite a significant HECS debt I need to pay off, that is currently been taken out of my pay. Is it worth paying it off or leaving it in term deposit? I dont know much about equities and not sure if its worth the risk/reward.
HECS interest rate 0%, Term deposit or online saver ( I use UBank ) 2.4%. Pretty easy choice if you ask me.
HECS is indexed to inflation which is currently 1.8-1.9% so thats why i asked the question.
@sagrules: Oh, I didn't realise. When I had a HECS debt early 90's it wasn't indexed so I paid off my house first.
Well then it's a marginal decision. You will pay tax on your 2.4% which will bring it down to about what the HECS debt is going up by. Depending on the RBA decision today 2.4% may become 2.15 ish so paying off HECS may be more attractive.
I guess it depends on what near term future purchases you may make. If you pay off the HECS then it's gone. If you are thinking of buying property / travel / Wedding etc in the next few years then it may be better to hold on to the cash.
As always it comes down to personal circumstances :)
Put the money into an indexed fund instead. They go up and down, but over a long enough time frame they always go up. If we ever have a long sustained period (a more than a couple of years) where indexed funds don't go up then we're in serious trouble (all of us, not just those with large investments).
Travel till it runs out start again.
Gold. Precious metals.
Trading at all time high in AUD. Hovering around $2200/ouce. It's time to sell that gold if you have any.
Looks like people took my advice ;)
IMHO it has further to run over the long run
It is a dilemma to purchase something that has just spiked, though.
Silver might be a better immediate option.
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Quick! Buy some USD, wait for AUD to drop more, translate back to AUD, profit.