Now that Europe is saving Greece and that US debt is under scrutiny, the US Dollar will sharply fall. Then when the other PIIGS country will collapse EUR will fall sharply. In fact, easy market.
The problem is not to be caught with any of those government paper at the wrong moment, as in 2008, the credit risk was the banks, and now, the risk is the countries default.
Tough time to take a decision.
So, let’s avoid financial institutions and keep our money next to us and invest in the new “safe world”
- Art
- Real Estate
- Commodities
- Precious stones
In term of currencies asset allocation, i would avoid for some time still Euros and US Dollars
Euros should be replaced by Swiss Francs, with an objective of 0.9300 (1.1800 now)
US Dollars should be replaced by Australian Dollars, with an objective of 1.2400 (1.0800 now) and Singapore Dollars, with an objective of 1.0000 (1.2100 now)
Precious metals, Gold is still heading for 2200 USD (1595 no2), and Crude to 130.00 USD (99.00 now)
Interest rates, still low for at least an other year. I would buy bonds denominated in AUD, up to 5 years. I would buy Venezuelian debt (correlated to oil)
Stock market, i like stock picking and technology. Buy Apple, Google and Baidu, as they are here for the next 100 years
