Author Topic: Where should you park your money right now?  (Read 344587 times)

Offline c722

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Re: Where should you park your money right now?
« Reply #15 on: October 13, 2008, 21:52 »
so for those ppl that put assie $$$ as fixed deposit in the hope of getting 5% interest rate, they would have lost more than 25% + whatever exchange rate the bank is charging....

u lost more.  the "5%" AUD rate is annual, the 30% drop is spot.  Say you put 3M FD, u really just get 0.05/4 = 1.25%.  So you lose total 28.75%.

FD rates can never never hedge the loss in exchange rates.  At this juncture no one dares to be ccy expert any more.  Just 3 months ago, analyst are calling AUD reaching parity with US$, now it's going to 0.6x level.  You really think after 1Y AUD will be back ?  Fx is no less risky that equities. 

And btw when you do fx, it's real silly if you really go buy AUD (and at maturity sell AUD) in the bank! You are paying anywhere from 75bps to 150bps just on the exchange rate itself to the bank!  Normally people do fx hedge when they have a natural fx need, like salary, or trading income, or expense in fx.  Or you do some cross currency bets to get high yield (12-20%) and ended up converted to fx.  Never never go to a bank and buy fx there.  Spore banking system is not a "free" fx system like HK.  You dun really have a fx account.  You fx valuation are just a booking entry in the bank, and is daily valued internally in S$ (and special case US$, as SG has a local US$ clearing house).  For example say you have a EUR or AUD account balance of 10,000. You go to a branch and withdraw your money in foreight currency.  The bank will charge you as if you are doing a fx in lieu of fx rate. 
« Last Edit: October 13, 2008, 22:04 by c722 »

Offline Quest

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Re: Where should you park your money right now?
« Reply #16 on: October 15, 2008, 01:05 »
Well, my opinion is the A$ may drop further.. but not by alot more. i am not too sure on the status of commodities now but can't imagine A$ dropping below S$0.85 or so. I kind of recall this was the historical low level maybe 8 yrs ago when I was studying there. conversely, S$ may devalue and thus the trade may improve.

But bearing all these factors in mind, ur money may be better invested elsewhere.. taking a chance that A$ will rise in value within next few years back to 1.3 level is not really a good bet IMO.

Offline petetherock

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Re: Where should you park your money right now?
« Reply #17 on: October 15, 2008, 05:33 »
Hey guys, considering the Pioneer LX 508 is about Aus $4400, maybe we can bring in a few sets from there...
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Offline n3wk1d

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Re: Where should you park your money right now?
« Reply #18 on: October 15, 2008, 10:13 »
We chip in and get an air ticket for one person, then this person going there and buy a few unit and send each of us a "gift", wouldn't this be a great idea ? It's christmas time, you know. gotta prepare lots of "gift". I'm yearning for a full HD 50" plasma or bigger..  ;D

Hey guys, considering the Pioneer LX 508 is about Aus $4400, maybe we can bring in a few sets from there...
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Offline game_goondu

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Re: Where should you park your money right now?
« Reply #19 on: October 15, 2008, 14:38 »
u lost more.  the "5%" AUD rate is annual, the 30% drop is spot.  Say you put 3M FD, u really just get 0.05/4 = 1.25%.  So you lose total 28.75%.

FD rates can never never hedge the loss in exchange rates.  At this juncture no one dares to be ccy expert any more.  Just 3 months ago, analyst are calling AUD reaching parity with US$, now it's going to 0.6x level.  You really think after 1Y AUD will be back ?  Fx is no less risky that equities. 

And btw when you do fx, it's real silly if you really go buy AUD (and at maturity sell AUD) in the bank! You are paying anywhere from 75bps to 150bps just on the exchange rate itself to the bank!  Normally people do fx hedge when they have a natural fx need, like salary, or trading income, or expense in fx.  Or you do some cross currency bets to get high yield (12-20%) and ended up converted to fx.  Never never go to a bank and buy fx there.  Spore banking system is not a "free" fx system like HK.  You dun really have a fx account.  You fx valuation are just a booking entry in the bank, and is daily valued internally in S$ (and special case US$, as SG has a local US$ clearing house).  For example say you have a EUR or AUD account balance of 10,000. You go to a branch and withdraw your money in foreight currency.  The bank will charge you as if you are doing a fx in lieu of fx rate. 


thanks for all the additional info. i know that its not that simple like buying SGD fixed deposit.

Offline lewlian

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Re: Where should you park your money right now?
« Reply #20 on: October 16, 2008, 11:56 »
http://www.cnbc.com/id/27177659



Not too later if he wants to re-enter. Markets are tanking again...
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Offline c722

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Re: Where should you park your money right now?
« Reply #21 on: October 23, 2008, 12:03 »
for those cash that are really excess and have appetite for risk...pls buy some bluechip stocks...many have fallen 60-70%...these opportunities only come once in 8-10 yrs and most often you will double or triple your initial investments in 3-5yrs time...ON what to buy please ask your stockbrokers...what I can say is if DBS becomes $10-12 / share...time to sit up straight and consider.

DBS today is 10 plus.  really "opportunities" ?  ;)
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Offline jayou

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Re: Where should you park your money right now?
« Reply #22 on: October 23, 2008, 12:11 »
Anybody brave enuff to catch a falling knife now?  What do you consider good levels and good blue chip stocks? 
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Offline MC_Hammer

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Re: Where should you park your money right now?
« Reply #23 on: October 23, 2008, 12:17 »
Warren Buffet's Wise words :

" Be FEARFUL when others are GREEDY , be GREEDY when others are FEARFUL ! "

" BAD NEWS is an investor's BEST FRIEND ! "
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Offline silencer13

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Re: Where should you park your money right now?
« Reply #24 on: October 23, 2008, 13:03 »
Warren Buffet's Wise words :

" Be FEARFUL when others are GREEDY , be GREEDY when others are FEARFUL ! "

" BAD NEWS is an investor's BEST FRIEND ! "

Very wise words!
Unfortunately (or fortunately depending on how u look at it) not many people can follow.

Offline c722

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Re: Where should you park your money right now?
« Reply #25 on: October 27, 2008, 13:17 »
can't imagine A$ dropping below S$0.85 or so.

It's now 0.92. By year end it may be 0.8 already!  >:(
« Last Edit: October 27, 2008, 13:30 by c722 »

Offline petetherock

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Re: Where should you park your money right now?
« Reply #26 on: October 27, 2008, 16:44 »
Will consider changing some and going for an Aussie holiday...

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Offline Knight_Rider

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Re: Where should you park your money right now?
« Reply #27 on: October 27, 2008, 17:20 »
If SGX drop further it's a good buy. Heck if everything drop further (this week) all is a good buy.  ;D

Offline petetherock

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Re: Where should you park your money right now?
« Reply #28 on: October 28, 2008, 11:28 »
Does anyone know if the Aus $ is still in short supply?
Might change some this week.
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Offline petetherock

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Re: Where should you park your money right now?
« Reply #29 on: November 20, 2008, 23:43 »
AUS $ is expected to go lower a bit more, whilst the USD is expected to go up, going to stock up for my future trips...
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