There is another opportunity to play the weakening $A again this financial year, and not only for international investing. A year ago we forecast the $A would fall significantly. At the time we said the potential currency decline created an opportunity, particularly for savvy SMSF and self-directed investors, to shift funds offshore and benefit from the weakening local currency. That play paid off. A portfolio that allocated 30% offshore would have returned around 7.5% – that’s double the return of the Australian share market and with a lot less risk and volatility. The success of the strategy highlights that asset allocation strategies like this are becoming increasingly important for SMSF and self-directed investors. The good news is we think that play is on again this financial year. (VIEW LINK)


Please sign in to comment on this wire.

James Marlay

Well worth taking the time to read this article.

Peter Murch

Excellent article. $US became my holding for $A cash 3 months ago and has returned much better than bank rates already. I see much more risk in holding high dividend Australian stocks , when you have no control over the share price in lead up to dividends.