Originally Posted by sunfish
Be aware that this is "financial pornography". It is also possible that the author of the statements has an interest in seeing the Australian dollar decline in value.
Be aware that if the banker boyz in New York and London see an opportunity to short the Oz dollar and then talk its value down, they will take it in a heartbeat. This is a game to them and it makes them hundreds of millions of dollars if they can get it right.
Sunny,
Absolutely. Although I must also add that, just like interest rates where people had the option to lock in cheaper fixed rates, people and companies will have no right to complain if they do not take action based on the current strength of the Aus$. It may appreciate somewhat but the odds, in my opinin, are now on the Aus$ declining over the medium to longer term if not before. We all have the opportunity to buy stuff online or from the US, once our dollar declines and we get slugged with foreign exchange rate price rises there's going to be a LOT of unhappy people bceause we will have destroyed large sectors of our economy by purchasing from OS and putting our people out of business.
I'm not legally allowed to give financial advice, I would suggest to anyone considering investing that they should see their professional advisor. But if you can lock in longer term payments in US$ right now then that MIGHT be a good strategy. I'm looking to buy properties with a very high (in Australian terms) rental yields. Here in Aus we negatively gear investment property i.e. we take a tax loss during ownership whilst allowing a capital gain to occur, in the US there's the option of positively geared property which pays more in rent than the mortgage costs, but you need the security to back it up. Longer term that could provide a good source of US$ income when the world settles back down to a more natural order.
R