What to do with US Dollar lump sum ?

J

jrewing

Registered User
Messages
554
Over a period of several years some time ago, I was paid in USD. While I thankfully exchanged the majority of the money at the time, I stopped doing this once the rate slipped to 1.25, in the expectation that it would reverse. I now have approx US$100k languishing at around the 1.50 mark with no immediate sign of improvement. It is in a very low interest rate savings account at the moment.

Assuming that I don't have a need for this money in the next 3-5 years, does anybody have a suggestion as to how I should invest it, or whether I would be better off exchanging in part now ?

I have had previous suggestions of buying property in the US / spending all my holidays in the next 20 years there etc.

Thanks, JR
 
hmmm... maybe use the cash to fund an on-line broker account and invest in shares, or ETFs on the stock market?

Maybe someone else would have some comments on the possible future directions of the dollar/euro exchange rate. From what I have read many people are concerned about high inflation in the US over the next few years due to the quantitative easing (money printing) activities of the fed (which the eurozone has not indulged in to the same level). So the exchange rate could get much worse. Shares would rise in such a scenario also, though perhaps not enough to compensate for the exchange rate change.

To be honest I'm only guessing.

Ix.
 
regarding the current projections for EUR/USD

+1 month 1.50
+3 month 1.51
+6months 1.53
+9 months 1.44
+12 months 1.38

these figures were taken from the rbs trading team

so if not looking to invest, it would be worth holding on for a year if you can.

i will say if and when you would be looking to move some/all of the dollars back would be worth getting quotes from more than one bank/ currency specialist to make sure you get the best rate.
 
no worries, i will also say if and when you do the exchange it will be worth looking into the currency exchange process further as there are many way you can obtain a better rate of exchange. check out www.currencyexchange-advice.com for more info
 

JR,

The USD is in a long term bear market. Have you considered investing in gold?
 
You must log in or register to reply here.
Menu
Log in
Register