Lacking Soros' resources, I don't have the stomach for currency speculation. In effect, this is the added complication of unhedged USD investments.
Without doubt, they've had a stellar run these past few months. But will it perform as well in the next 12 months?
The AUD is now at .81 and not expected to go below .75 so there's only a 7% upside left to the currency equation.
This is not much shy of the gross yield I get from say VHY in 12 months.
So this leaves all your eggs in the growth side of the equation. Dow at 18,000 yesterday. Economy in US is on the uptick, consumer confidence at a 9 year high. It may be that you will be rewarded with double digit growth next year.
Ps..My super is in pension phase, hence my conservative view point. So, I'll stick to the comfort zone of the local playground.
