QUOTE(hedfi @ May 14 2022, 10:10 PM)
That's what I'm doing, go EUR and back to USD when rates improve, just my believe that USD at this rate is unsustainable.
Just gauging other investors investment strategy, didn't expect to be lectured, everybody's got their own strategies
π
I invest in ETF which tracks the S&P 500 Index. What I noticed is that if you buy USD denominated ETF, the discount that you enjoy now will be in the similar magnitude as the S&P index fluctuations. However, if you buy the same ETF but denominated in currencies which are weakening against USD, you will not encounter as deep of a discount.
I.e.
1. S&P 500 dropped by 10%.
2. GBP weakened against USD by 5%.
3. Your GBP denominated ETF price might only have dropped by 4-5%.
So while you may exchange similar/more GBP with your MYR, you may not be able to load up as much stocks since they did not become very much cheaper.
On the other hand, you may not be able to exchange much USD since the currency has strengthened against MYR, so this may also result in you not able to fully enjoy the discount compared to if USD/MYR remained at a rather stable rate.
Then again, GBP/EUR/CFH has also been weakening against MYR, so maybe we get to enjoy some slight double dipping here?
This post has been edited by RayleighH: May 14 2022, 10:55 PM