Should I convert my savings from Euro to Dollar?
Discussion
Hi All,
Quick question for those in the know. The Euro situation is only going to get worse (Greece will default won't they?) and I can see the proverbial hitting the fan next year.
If you had a good bit saved would you convert to Dollars, Sterling, or even buy gold or something else with it?
I don't want my hard earned being worth a good bit less or even worthless, come this point next year
Quick question for those in the know. The Euro situation is only going to get worse (Greece will default won't they?) and I can see the proverbial hitting the fan next year.
If you had a good bit saved would you convert to Dollars, Sterling, or even buy gold or something else with it?
I don't want my hard earned being worth a good bit less or even worthless, come this point next year
OMG. whatever you do dont change it now into CHF. The CHF is the strongest (pretty much) that its ever been against the GBP,EUR and the USD. ETA-so you will get a horrendous rate.
If you're going to do this get some advice.
All my cash is in CHF but I earn my salary in it. For what its worth, I anticipate that the CHF WILL get stronger, against all three currencies based on the UKs exposure to EURO debt, EURO based on problems surfacing in Italy, Portugal, Spain, Greece, etc and the dollar due to them potentially defaulting on their debt.
Also, for currency changes I use SMART currency payments who seem to have some magical way of doing it which makes an extra 2%. PM me for details if you want.
If you're going to do this get some advice.
All my cash is in CHF but I earn my salary in it. For what its worth, I anticipate that the CHF WILL get stronger, against all three currencies based on the UKs exposure to EURO debt, EURO based on problems surfacing in Italy, Portugal, Spain, Greece, etc and the dollar due to them potentially defaulting on their debt.
Also, for currency changes I use SMART currency payments who seem to have some magical way of doing it which makes an extra 2%. PM me for details if you want.
daveco said:
walm said:
What currency are your costs in?
Euro. Are you thinking it's best to leave it as the cost of living will be in line with any devaluation of the currency?
Unless you are working in EUR and eventually going to move back to the US or something.
Of course the EUR imports a whole lot of crap so will suffer relative inflation which may hit your savings rate.
Finally what makes you think that the googilions of professional FX traders know less than the combined wisdom of a poorly followed sub-forum on a motoring website?
walm said:
daveco said:
walm said:
What currency are your costs in?
Euro. Are you thinking it's best to leave it as the cost of living will be in line with any devaluation of the currency?
Unless you are working in EUR and eventually going to move back to the US or something.
Of course the EUR imports a whole lot of crap so will suffer relative inflation which may hit your savings rate.
Finally what makes you think that the googilions of professional FX traders know less than the combined wisdom of a poorly followed sub-forum on a motoring website?
Edited by daveco on Thursday 14th July 15:21
daveco said:
Because you're on it Walm, where else could I get arsey but informed replies relatively quickly?
Ha!Sorry, I really don't know to be honest.
All I am trying to point out is that a wholesale move of your savings from one currency to another is probably a substantial change in investment philosophy and not one to undertake lightly.
Frankly, if all your savings are just sitting in a bank account in EUR or in Eurobonds or some PURELY EUR denominated instrument then DIVERSIFICATION would be the first thing I would look to do, not just swapping to another equally risky currency bet.
However, if you have a whole bunch of equities that HAPPEN to be listed in EUR then you are sorely mistaken in thinking that they will naturally suffer if the EUR drops.
A good example in the US is Virgin Media.
All of their earnings are in GBP but they happen to be listed in USD.
As the USD weakens the stock will go up even if the fundamentals don't change.
So as a UK investor you aren't really exposed to any currency risk, even though you own a USD denominated instrument.
Another important example would be say the Dutch listing of Unilever.
Something like 40% of their earnings are from emerging markets so if the EUR weakens then the stock goes up.
Since you own things that are valued in a multitude of different currencies then you are somewhat hedged.
walm said:
daveco said:
Because you're on it Walm, where else could I get arsey but informed replies relatively quickly?
Ha!Sorry, I really don't know to be honest.
All I am trying to point out is that a wholesale move of your savings from one currency to another is probably a substantial change in investment philosophy and not one to undertake lightly.
Frankly, if all your savings are just sitting in a bank account in EUR or in Eurobonds or some PURELY EUR denominated instrument then DIVERSIFICATION would be the first thing I would look to do, not just swapping to another equally risky currency bet.
However, if you have a whole bunch of equities that HAPPEN to be listed in EUR then you are sorely mistaken in thinking that they will naturally suffer if the EUR drops.
A good example in the US is Virgin Media.
All of their earnings are in GBP but they happen to be listed in USD.
As the USD weakens the stock will go up even if the fundamentals don't change.
So as a UK investor you aren't really exposed to any currency risk, even though you own a USD denominated instrument.
Another important example would be say the Dutch listing of Unilever.
Something like 40% of their earnings are from emerging markets so if the EUR weakens then the stock goes up.
Since you own things that are valued in a multitude of different currencies then you are somewhat hedged.
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