I think it is possible for SGD to reach parity with USD by 2040. Singapore employs a strict stewardship of growing the economy and managing the strength of its currency. Although Singapore also has huge debts, it manages it and steer the economy to enable strong growth and being a safe haven for companies by having the right policies, stable government and the right workforce. This helps it strengthen against the USD.
I won’t buy gold even if the USD keeps sliding. I think there is a possibility of the Chinese yuan being one of the world’s reserve currency. Also, there are many stocks that can offer greater yield than me holding gold. In terms of returns, I prefer to hold stock.
My preference has always been the ETF that tracks the world index eg VTI so I would keep to that. I also do thematic ETFs eg in semiconductors like SMH and this strategy has fitted my risk appetite and generated good returns. A weakening USD would affect returns but that affects almost all asset classes.
DBS Forecast: SGD = USD by 2040! Could SG Become Next “Safe Haven” Hub?
DBS Group Research just dropped a bold projection — by 2040, Singapore’s GDP could double, the Straits Times Index may hit 10,000, and the Singapore dollar (SGD) could reach parity with the US dollar.
1️⃣ Do you believe SGD can really reach parity with USD by 2040?
2️⃣ If the USD keeps sliding, would you increase your gold allocation?
3️⃣ How would you position your portfolio for a long-term USD downtrend?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments