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How to capatilise from a collapse of the Australian dollar?

  • 12-06-2013 3:25pm
    #1
    atlanticman
    Registered Users, Registered Users 2 Posts: 5 ✭


    Hi,

    What is the best approach to capatilise from an imminent national currency crash?

    I'm looking at Australia where property prices have gone way up in recent years and price of a beer has quadrupled.
    We know what happens to a bubble when it gets to that stage. It draws parallels with Ireland in 2008.

    Main difference is that Australia has its own currency so may de-value it. I don't know if this means their stock exchange would maintain value or would it still go down also.

    Given that this could be a few years before the crash in Australia, what is the best way to capatalise from this?
    ForEx trading seems difficult as there is a daily cost so a 2 or 3 year wait is not realistic.
    Would hedge betting on the Australian index be best?


    many thanks,


Comments

  • #2
    daheff
    Registered Users, Registered Users 2 Posts: 5,933 ✭✭✭daheff


    I think your best bet is to short AUD vs another ccy on a spreadbetting exchange (or sell AUD/buy another CCY future)


    I would think that with a revaluation of the currency that the stock exchange levels would remain as are (give or take)....but maybe research other devaulations and effects it had on local exchanges.


  • #3
    Sonnenblumen
    Registered Users, Registered Users 2 Posts: 5,834 ✭✭✭Sonnenblumen


    Will be interesting to see what happens down there as for years they have bragged their way as a leading economic power and proud boasted about their bubble free economy.

    Huge economic dependence on China, see what happens there too and plenty of anecdotal info that local economy is struggling with employment, house pricing and general cost of living.

    Beware Van Diemens land!!


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