Back in end 2015, my friend picked up news on the Facebook feed on the news that USD will be strengthening further.
During that period the USD to SGD is at a rather high point of 1.43.
The implication of this currency on every day folks like myself is that when USD is down it makes shopping at Amazon to be cheaper. If I am anticipating USD dollar to be rising, I should be making the decision to purchase what I would like to purchase today.
Alas, if you look at this USD versus SGD chart, you would see that the price of USD against SGD went the opposite direction.
Had you purchase what you want to buy in December 2015, you might be kicking yourself.
The lesson learn here is that: Newspaper writes commentaries on bank analyst’s opinion on price direction. It is hard for them to be seen as experts unless they are quantitative about it, using some technical indicators as such. Even in that case, there are also failure patterns.
If you rely on opinions in the newspaper to make decisions, you are most likely going to get it wrong, because newspapers are often the slowest.
The second lesson here is on purchasing things. It is either you need it or it is just a want. If you really need it, or you really want it, just buy it at a price where it is cheaper than what you can get in Singapore.
It is hard to predict currency movements to such an accurate degree.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- New 6-Month Singapore T-Bill Yield in Late-September 2023 Should Stick to 3.75% (for the Singaporean Savers) - September 21, 2023
- A Concentrated, High-Quality Fixed Income Financial Independence Income Strategy Has Enough Uncertainty - September 20, 2023
- Why Do We Save Money After We Reached Financial Independent Status? - September 18, 2023