QUOTE(Jaxisme @ Jan 3 2014, 07:10 PM)
Well Plan B ... I agree with you US WILL up their rate sooner than later, which will mean a lot of places interest will go up. Yes that will probably have an impact on asset prices .. but what are your alternative??
All these "hot money" you refer to would be re-patch back to the US ? this will have an impact on the currency - so holding cash you also die! as the purchasing power would go down. So are you not better off holding real assets?
don't get me wrong - I'm saying BBB - prices will def fly etc .. because I actually think prices stagnate, but just hoarding cash and holding back may not be a safe bet either
When "hot money" is repatriated back to the U.S, local interest rate is almost certain need to rise to prevent MYR to fall further. If holding MYR, purchasing power may be reduced but is better off than to be burdened with high interest loan which you may lose the whole lot and more. If you worry about MYR, you could hold SGD or USD.All these "hot money" you refer to would be re-patch back to the US ? this will have an impact on the currency - so holding cash you also die! as the purchasing power would go down. So are you not better off holding real assets?
don't get me wrong - I'm saying BBB - prices will def fly etc .. because I actually think prices stagnate, but just hoarding cash and holding back may not be a safe bet either
Jan 3 2014, 08:10 PM

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