Another Singapore Opportunity: Moving Away from the Australian Dollar.

Shifting away from the Australian Dollar and focusing on international positions that offer substantial, undiscovered long-term value.

I’m deeply concerned about what could happen in Australia within the next decade, especially after reading and watching Matt Barrie’s (successful Australian entrepreneur) latest article and presentation on the health of the Australian economic system.

Article: Put another Aussie on the Barbie.

YouTube: Put another Aussie on the Barbie Keynote by Matt Barrie.

In my view, not enough people are commentating on just how bad the situation is in Australia. I’m no expert, but I’ve shared my thoughts extensively in this publication, especially in my article titled “The Black Sheep.”

In short, I’m worried about what might happen to the Australian dollar, where ~80% of my wealth is concentrated.

Yes, I’ve avoided joining the great Australian dream of taking on heavy debt to finance a house.

It makes me ill to think about the debt load I’d have to take on to buy a decent house, which is why I live in Argentina. People in their 30s have never had it financially tougher in Australia, that is, until they inherit the property wealth of their parents—assuming the housing flywheel is still going by then.

Australians are the most indebted people on Earth when it comes to household debt.

However, avoiding housing doesn’t protect me if the whole system crashes. If the housing bubble bursts, you can imagine the potential fallout for the Australian dollar.

I’m not claiming this collapse will happen, as many respected commentators suggest the system is just “too big to fail.”

Some staggering statistics from Matt Barrie’s research is that Australia has over 800 operating cranes in its capital cities.

New York has 7.

According to RLB, Sydney has almost as many cranes as the entire North American crane index which counts a total of 434 across New York, Boston, Toronto, Washington, Chicago, Los Angeles, Phoenix, Las Vegas, Denver, Portland, Honolulu, San Francisco, Seattle, and Calgary combined.

During the GFC, instead of reining in the housing market, Australia doubled down. They made it easier to buy property, with first home buyer grants, drastically reduced interest rates, massive tax breaks, and continued aggressive lending. Just look at the Commonwealth Bank’s market cap—it essentially consists entirely of property, and its size compared to international giants like Goldman Sachs, Morgan Stanley, Citigroup, and any European bank is staggering.

Yes, it’s bigger than all those and ANY European bank.

To sustain the housing market, Australia has been importing 2% of its population per year and maintaining very low interest rates. They’re essentially doing whatever it takes to keep the housing flywheel spinning, and honestly, it terrifies me.

Thankfully, my network helps me here, and insightful people like Trader Ferg and subscriber

John

have highlighted incredible opportunities for me to diversify internationally, even as an average punter with an international trading account. Before a ‘potential’ housing collapse hits and we face a liquidity crisis affecting the Australian dollar, it’s definitely worth considering these alternatives.

Bottom line, I’m ready to move some of my money out of the Pacific Peso (Australian dollar). The deep value of opportunities in Singapore, thanks to the hard work of smarter people identifying them, stands out as a way to do this.

Singapore Dollar vs. US Dollar & Australian Dollar: I’m concerned about the future of the US Dollar, given the economy’s inability to absorb significant pain with the US$35 trillion debt burden.

Since I wrote this article:

My Most Bullish Stock.

Exactly one month ago, the stock, also listed in Singapore, is up 100%.