Strong Aussie dollar allows investors to 'make hay'

The high value of the Australian dollar is allowing investors to make a wide range of cheap offshore investments that offer the least amount of currency dislocation for more than 25 years, it has been observed.

Jim Stening, managing director of fixed-interest broker FIIG Securities, noted that the rise of the Australian dollar to near-parity with its US equivalent has given investors a huge opportunity to diversify their overseas portfolios.

Speaking to the Australian, he said: "For the first time in living memory for Australians, the rest of the world is on sale.

"In terms of overseas assets, Australians have never been able to buy this much bang for their buck."

Australians looking for strong long-term investments and good returns could also choose to compare term deposits in search of the best deals. According to the Australian, while there is still a risk of ovserseas purchases being worth up to 15 per cent less immediately if the Australian dollar were to appreciate to $1.10-$1.15, many investors appear willing to take that risk in order to diversify their overseas assets "at levels that minimise the currency loading they normally pay".

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