US Dollar or British pound

[investor]

I am looking at investing some money and have the choice to invest it either in US curency or British Stirling, what would you think is the best option.

[depends]

I would say it depends on how long you want to invest for. How long is your 'play'....

For me, if you have a while... start to dollar cost average your money into USD...

If you have 100K just put it over in chunks... say 4 installments of 25K each...

If the dollar continues to fall over the next few months the dollar cost average will help offset all that.

But in the long term the USD will rise and give you much better returns.

[investor]

Thanks thats what my gut was telling me to do.  We have only 50k GBP to invest but am looking for an investment period of only 2 years hence my worries. 

[zoomfin]

Hi, if you dont mind...USD is one of the worst currency to put in. Its in a bear and no sign of reversal yet. The US economy is sliding.....The Euro maybe a better bet or.....GOLD. JMHO

[Vulcanl]

Agree with PP - there is no fundamental reason on the horizon for improvement of the USD prospects (unending foreign entanglements, social security shortfalls, budget deficits, no tax increases, etc)

[disagree]

Rubbish. US dollar weakness is fully impounded in the current FX rate - Sterling is likely to weaken v. USD as the UK is likely to face far worse issues than the US as their consumers are more highly geared. The impact of this has yet to be seen - hence as house price falls accelerate and job losses increase the UK will be in a far worse position than the US.

What does this imply? UK interest rates will have to fall as the BoE will need to stimulate growth. The market currently expects rates to rise because of inflation concerns.....

If UK rates come down, then this adds to further selling on GBP as the currency becomes less attractive for investment.

[Vulcanl]

investor,

what is the source currency of your investment?

[zoomfin]

GOLD Anyone?   

[investor]

The source currency is Stirling.  I am mainly concerned with the weakening of the pound.  I also think that the Euro might be at its peak and was therefore thinking that the US $ might be an option. 

[I am just saying]

Buy Aussie dollars!

[zoomfin]

The source currency is Stirling.  I am mainly concerned with the weakening of the pound.  I also think that the Euro might be at its peak and was therefore thinking that the US $ might be an option. 

USD IS an option but not a good one....Canadian Dollah?

[Vulcanl]

I'm with Zoomfin - Pound Sterling is a better bet compared to USD.  Gold may be close to a peak.  Honestly Singapore or Hong Kong dollars would be better hedges at this point

[errrmmmm]

I'm with Zoomfin - Pound Sterling is a better bet compared to USD.  Gold may be close to a peak.  Honestly Singapore or Hong Kong dollars would be better hedges at this point

HKD is pegged, you have any reason to think that will change soon?

[zoomfin]

I'm with Zoomfin - Pound Sterling is a better bet compared to USD.  Gold may be close to a peak.   Honestly Singapore or Hong Kong dollars would be better hedges at this point

They have saying this since gold was at USD650....   

Gold is correcting but USD is tanking. USD is inverse of Gold , so go figure....prediction Gold will be at USD1200 at year end, give or take. JMHO

[Vulcanl]

Doesn't matter whether HKD is pegged or not.  OP is looking for a safer place to put their cash.  The Asian currencies are a better bet than their Western counterparts for the time being.  Gold has had a great run, no doubt about it.  Looking toppy at this point, though.