With the Sing Dollar hitting all time highs against the Malaysian Ringgit and even the Japanese Yen, these countries have become attractive for us Singaporeans. However, besides spending for leisure, the strong Sing Dollar is making foreign assets cheap for us investors to purchase.
On the SGX exchange, we have US and Euro denominated counters. The weakening exchange rate is making them an attractive buy.
For example due to the weaker US dollar, the price I paid for Keppel Pacific Oak is now 2% cheaper. I have been accumulating foreign REITs which are yielding 15% and above and with the weaker US dollar, it enables me to collect more.
Personally I dont think the Sing dollar can remain that strong forever as the reason for its strength is to fight against the global inflation. Once global inflation dies down, the Sing dollar will gradually weaken so that the inflation impact is smooth out. Hence I am preparing for that and accumulating foreign assets by changing my Sing Dollar out. Fortunately there is an avaliability of undervalued assets are in foreign countries such as Alibaba, Tencent, the US REITs, Elite commercial. This enables me to find good assets to park my foreign currency in.
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