Hi Grant,
I agree that there is a long term risk of recession if the dollar continues on past the 80c mark (which even the shoe shiners are forecasting).
My strategy is to keep holding the $AUD until July, then try to buy into an offshore position. The "real" value of the $AUD (according to Ord Minnett) is around 66-68c, therefore mean reversion would suggest a 17% profit if I can get it offshore at a rate over 80c.
The big challenge is where to invest? I've always favoured the big US diversified companies such as GE, but I doubt I can trust the US economy (at least not until the election's over). Euroland's a mess and China has got another confirmed SARS case. Where can you invest? (I have heard Iraq is cheap at the moment).
Cheers
- Forums
- ASX - General
- asia up, australia down, $a up
Hi Grant, I agree that there is a long term risk of recession...
Featured News
Featured News
The Watchlist
LGP
LITTLE GREEN PHARMA LTD
Paul Long, CEO
Paul Long
CEO
Previous Video
Next Video
SPONSORED BY The Market Online