Advice on How to Invest for 30K USD

M27 on 17/11/2020 - 18:28

Hi all,

I have USD 30k savings in my local foreign currency account since mid-2019. It has been put in term deposits with really low interest rate (0.1% - 0.45%) in the past. I have started investing in ETF 1 year ago and always want to convert the money to AUD and buy some ETFs instead (e.g. VDBA, VDHG).

I noticed the Aussie dollar has recovered from March's lower 60c and was fluctuating between 70c – 73c since Sep, there are two options I am currently thinking of:

  1. Hold the USD and wait for AUD to drop to 70c again (hope), convert it and buy ETFs.
  2. Convert it to AUD now and put them in ETF.

Question: which option will have higher chance of better return in the next 6 months timeframe? Shall I bet on currency or share market? Myself is quite new to investment, so any advice will be welcome!

Thanks in advance.

Financial Investment

Comments

  • spackbace on 17/11/2020 - 18:42
    +8

    Put half on black, half on red

    • Kangal on 17/11/2020 - 20:26
      +2

      The red's you can change afterwards, but once you go black…

  • DingoBilly on 17/11/2020 - 18:46

    I wouldn't make any significant financial decisions based on advice from here - we're just random people who for all you know put all their money on black each week to try and double up. If we did have this sort of information then we'd all be investing the best way and making millionaires of ourselves.

    That being said, without any financial background or understanding of currency markets I would go for option 2 simply to get it over and done with. Holding onto money based on hope is usually a poor strategy, and with the elections and COVID in America it's really difficult to tell wtf is going to happen and how the market will react. So in my head it's basically a 50/50. At least converting it now means you have it out of your head and can start looking ahead instead of checking every week what the conversion rate is and hoping for the right moment to drop.

    • M27 on 17/11/2020 - 23:03

      I was holding it at the end of Oct as I was expecting RBA to cut the rate, though Aussie dollars didn't really go down after the announcement. :(

      • Trying2SaveABuck on 17/11/2020 - 23:31
        +1

        I dont have a crystal ball but i dare say Biden will likely close the US economy for a good 1-2 months to battle COVID IF a suitable vaccine isnt found AND administered by the time he gets in.

        Thus the US Government will be force to provide further stimulus which to the trillions already dumped in to struggling business and individuals. You will likely see the US dollar continue to weaken.

        However if a Vaccine is found to by the yanks i dare say they will be fine.

        I think ScoMo is done giving handouts and is now looking to 'create jobs' and businesses will be the short term excuse to not pay people well/ not give pay rises etc due to COVID difficulties.

        It is impossible to know for sure but if i HAD TO BET i dare say out dollar will continue to improve against other major currencies like the Pound/USD/Euro . But as always do your own research im not financial advisors and i dare say most of the ppl are OzB aren't either.

  • SF3 on 17/11/2020 - 18:48
    +1

    TAB or Casino…

  • plmko on 17/11/2020 - 18:55
    +2

    All in on Google.

  • SBOB on 17/11/2020 - 19:07
    +1

    Convert it to AUD now and put them in ETF.

    why couldnt you just invest in an ETF in a foreign currency/USD?

    • M27 on 17/11/2020 - 23:05

      The USD is in my local CitiBank account and it is hard to transfer the money to buy a USD based ETF (to my limited knowledge).

  • Ocker on 17/11/2020 - 19:22

    Why, apart from a pure punt, would you want to hold onto the USD? If you have some upcoming liabilities in USD then that is another matter.

  • Seraphin7 on 17/11/2020 - 19:27
    +1

    Convert to AUD now and invest in an unhedged US equities ETF.

  • Briefcase Mong on 17/11/2020 - 19:35
    +2

    r/ASX_Bets

  • Nutrino on 17/11/2020 - 20:35

    on nsw, origin 3. easy money….

  • neoleo on 17/11/2020 - 21:32
    +1

    My answer is option no. 2 obviously.
    You should have done this in October. But it's still good to do option no. 2

  • neoleo on 17/11/2020 - 21:33

    My answer is option no. 2 obviously.
    You should have done this in October. But it's still good to do option no. 2

  • perhaps on 17/11/2020 - 21:47

    Convert to Zimbabwean dollar > inflate currency > and then boom profit 🤑

  • cloudy on 17/11/2020 - 22:28
    +2

    save it for a holiday in USA when borders open up

    • M27 on 18/11/2020 - 00:18
      +2

      LOL, I actually do have a few nights of accommodation as credit in YellowStone NP, was scheduled to go there in July though cancelled my trip.

  • mr_asstight on 18/11/2020 - 00:31

    Bitcoin

  • RockyRaccoon on 18/11/2020 - 05:59

    Na go for gold, I have an Uncle in Nigeria who can guarantee 100% return

  • Fredfloresjr on 18/11/2020 - 08:03

    Sportsbet

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