QUOTE(Showtime747 @ Jul 12 2017, 12:28 PM)
Another million dollar questions on which currencies to hold :
If market crash really happen in the near future, how would it affect our currencies ? (USD, S$, A$, GBP, CNY, JPY.....)
My guess will be US market will start the ball rolling. So, USD will come down first. And fund manager will scramble to other safer markets (JPY ?). So other currencies will gain over USD
And Gold will soar, Bond will be snatch up....
How would RM perform ? Will RM still peg to USD ? Should we hold RM or change to S$ or A$ or JPY NOW in anticipation of picking up good value stocks IF market crash ?
Good question, impt to be prepared!
If u look at the last 6 months, usd index already dropped 8%.
The rate hikes have all been priced in, maybe overdone.
During this period, euro gained most, rmb next, yen a bit.
Sgd gained, aud not much.
Rm gained against usd but lost to all the rest of majors.
Rm lost to thai baht too, now at 7.9.
If market crashes, usd index can fall another 5 or 10pc, and that has happened before, $ index below 75.
Rm will likely gain against usd but lose to others as usual.
Money will flock to traditional safe havens.
For that, i think easiest from here, hedge with gold, sgd, euro.
This post has been edited by AVFAN: Jul 12 2017, 01:32 PM