Desk Note - the case for holding US$ exposure - targeting A$ dropping to ~65c
It may be timely to enter the US$ trade. The A$ has been propped up by the Chinese stimulus from early 2016, which has seen an explosive recovery in commodity prices. Chinese growth is forecast to slow.If you look through the half yearly reports, the major producers have expressed concerns about the prices sustaining these levels. The rises in bulks have more than offset the tightening in the US, as the FED has increased rates, albeit slowly. If you step through the recent upwards drivers, and then take a view on rates in AUS and the US, it might be as good as it gets in the medium term for the A$. We look at the drivers here and how to hold US$ exposure simply via an ETF (VIEW LINK)
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
Tom is a Founder and Head of Wealth Management. Since 2012, he has been running the Alpine Model Portfolios, focusing on macroeconomics and tactical equity positioning. These portfolios were initially created as a solution for "core wealth management" for Alpine's HNW clients, and are now openly available online through the website. Everything starts with the macro, and then we work back from there in terms of asset allocation and positioning for risk. We work with leading independent research providers and have a structured approach that has worked very well over time. Outside of the core portfolios, we look for opportunities in the small to mid-cap sectors of the market, where our experience can add value.
1 topic
Comments
Comments
Sign In or Join Free to comment
most popular
Equities
This recently triggered market signal has never failed to predict gains
Ophir Asset Management