Gbp Sterling

[12DrinkMore]

In response to drinkmore on my beliefs and thoughts :

I think basic human drives defy political categorisation, making money is making money.

The funny thing about all governments, institutions, etc, is that they are all hopelessly inefficient and dualistic in nature. Too right I'm angry, I've been hit by the recession really badly to the point now that I have decided to fold for pastures anew.

But with the UK, is it really all about Brown? what about people just wanting too much? what about sheer greed from the bankers, and what about the buy to let brigade, and the people who over extended themselves and the financial authorities, etc, etc. It's extremely tough to face, but truth is most of us having now taken losses are left with what we deserve! What we collectively contribute to the health service is not enough, the pension pot needed to be double, and that wage really is too high relative to what we contribute. Just my thoughts!

Regarding the present Govt, you could hardly call it 'loony left', in fact more blue than red I reckon. I suppose it caved in to mass demands and will the next one be any better?

Yep, there are a fair number of angry people around here. I am definitely one of them.

Back to the UK. Yes, the blame lies absolutely with Brown. Performing true to form the labour party is continuing its history of disastrous fiscal management since WWII. Brown took over an essentially sound economy, now it is one of the biggest messes in the world. It was on his watch that the housing bubble was left to develop, 110% mortgages were offered, Brown did nothing, in fact, he promoted it by substituting the CPI for the RPI as the instrument of inflation measurement to be used by the MPC in setting interest rates, effectively removing the housing bubble from their discussions.

Yes, ultimately unfettered greed was possibly the main source of today's woes. By allowing the banks to freely issue cheap credit Brown let the bubble expand until it burst, in the process destroying the banks' balance sheets, the country's balance sheet and sent the country reeling into the deepest recession in 100 years.

Brown, in over twelve years in office, has also neglected to implement any solutions to the looming pension crisis, in fact he exacerbated the issue by taxing pension schemes on bond income, he failed to save money money in the good years instead ran ever increasing deficit budgets stating "they will be balanced over the cycle", and expanded the size of the public services to the biggest it has ever been. Now fully 25% of the UK workforce works is on the government payroll. Yep, every three workers in private industry are bent double under the load of one public servant.

I could go on, but that's enough....

[12DrinkMore]

I have been tracking the GBP for a long time now but using the KBank rates of exchange simply because that it the bank I use here.

I normally check after lunch on a Monday to Friday just before I log in to ThaiVisa.

I have attached my file should anyone care to look at it.

Bills_Forex_2009_2.xls

Pity you haven't gone back to the time, not so long ago, when we were up at 72 plus THB to the GBP.

"A weak currency is a sign of a weak government" Eat'em Brown, eat 'em and choke.

:D

[billd766]

I have been tracking the GBP for a long time now but using the KBank rates of exchange simply because that it the bank I use here.

I normally check after lunch on a Monday to Friday just before I log in to ThaiVisa.

I have attached my file should anyone care to look at it.

Bills_Forex_2009_2.xls

Pity you haven't gone back to the time, not so long ago, when we were up at 72 plus THB to the GBP.

"A weak currency is a sign of a weak government" Eat'em Brown, eat 'em and choke.

Actually somewhere on my laptop I have the data going back 10 years but I have been too lazy to compile it.

However just for you as a one time only offer I give you the 2008 stats.

It wasn't 72 but it was 68 +

Forex_2008_v2.xls

It reminds me of the old gospel song

"Oh happy days"

Edited October 8, 2009 by billd766

[pkrv]

I think I have said this before on a similar thread. But there is a flip side to all this.

GBPTHB= was around 75 back in 2005. Agreed the onshore offshore issue kicked in in 2007 but when I made my the final payment on my Condo I still hit 67.8

Essentially my Thai assets (a farang quota, freehold condominium) have increased in GBP terms by 50% (ish) As it happens the condo I bought seems to have increased 50% (ish) in value from its off the plan stage, it won the CNBC award.

So I am in the odd position of making 100% (on paper and in GBP terms, and before any comments I did say on paper ) in a few years flat.

It really does go to show that if you are planning to live in Thailand you need assets here, and those assets must be planned over the long term.

There was IMO a great quote on another thread that said something along the lines of -

It is important to develop a strategy for your home currency. Your home currency is the one you spend every day not the one you think is going to be stronger.

If in Thailand it is THB.

[mommysboy]

I think I have said this before on a similar thread. But there is a flip side to all this.

GBPTHB= was around 75 back in 2005. Agreed the onshore offshore issue kicked in in 2007 but when I made my the final payment on my Condo I still hit 67.8

Essentially my Thai assets (a farang quota, freehold condominium) have increased in GBP terms by 50% (ish) As it happens the condo I bought seems to have increased 50% (ish) in value from its off the plan stage, it won the CNBC award.

So I am in the odd position of making 100% (on paper and in GBP terms, and before any comments I did say on paper ) in a few years flat.

It really does go to show that if you are planning to live in Thailand you need assets here, and those assets must be planned over the long term.

There was IMO a great quote on another thread that said something along the lines of -

It is important to develop a strategy for your home currency. Your home currency is the one you spend every day not the one you think is going to be stronger.

If in Thailand it is THB.

Good posting.

Indeed more by accident than planning I did much the same and so am cushioned.

Meanwhile from they that should not be named comes a quote from BOT:

'The central bank had intervened in money market to curb the baht's appreciation, Suchada Kirakul, assistant governor at the Bank of Thailand (BoT), said on Thursday.

Mrs Suchada said the value of the baht was too strong when compared to the country’s economic fundamentals. She warned money traders to refrain from profit speculation from the baht's value as the BoT will keep a close watch on the currency's fluctuation.'

At last some reality in LaLa Land!

[chiang mai]

I think I have said this before on a similar thread. But there is a flip side to all this.

GBPTHB= was around 75 back in 2005. Agreed the onshore offshore issue kicked in in 2007 but when I made my the final payment on my Condo I still hit 67.8

Essentially my Thai assets (a farang quota, freehold condominium) have increased in GBP terms by 50% (ish) As it happens the condo I bought seems to have increased 50% (ish) in value from its off the plan stage, it won the CNBC award.

So I am in the odd position of making 100% (on paper and in GBP terms, and before any comments I did say on paper ) in a few years flat.

It really does go to show that if you are planning to live in Thailand you need assets here, and those assets must be planned over the long term.

There was IMO a great quote on another thread that said something along the lines of -

It is important to develop a strategy for your home currency. Your home currency is the one you spend every day not the one you think is going to be stronger.

If in Thailand it is THB.

Good posting.

Indeed more by accident than planning I did much the same and so am cushioned.

Meanwhile from they that should not be named comes a quote from BOT:

'The central bank had intervened in money market to curb the baht's appreciation, Suchada Kirakul, assistant governor at the Bank of Thailand (BoT), said on Thursday.

Mrs Suchada said the value of the baht was too strong when compared to the country’s economic fundamentals. She warned money traders to refrain from profit speculation from the baht's value as the BoT will keep a close watch on the currency's fluctuation.'

At last some reality in LaLa Land!

It was all going so well and you had my complete agreement, until the last phrase which really wasn't necessary.

[Abrak]

Without wishing to offend PKRV or others I would point out that talking about returns in GBP since 2005 is setting the bar a little low. I mean I would guess that the average Frenchman can claim that simply by putting his money on deposit (with dividends) he has achieved a 40% return in GBP.

Given the large number of currencies in the world choosing about the worst performing one to measure your returns is rather optimistic. Most investors would be writing down their GBP holdings as losses. (No wonder economists advocate positive inflation.)

Still the point that if you live in Thailand then you liabilities are here so you need assets to match them is a good one.

I always am puzzled why so many TVers are bearish of the baht. Theoretically (say PPP) it would imply everything here is overpriced so they probably wouldnt want to live here in the first place. (I mean sometimes people argue that they are moving to Thailand because they can have a better standard of living at the same price and then sort of argue that all their money is in GBP because the baht is going to collapse, which simply is illogical.) P.S. I do get the girl thing.

[pkrv]

Still the point that if you live in Thailand then you liabilities are here so you need assets to match them is a good one.

Hi Abrack no offense taken at all. I was actually making exactly this point, we simply say it in different ways. Do it the other way around it costs you 100% more.

This is the life of an expat

[Naam]

Still the point that if you live in Thailand then you liabilities are here so you need assets to match them is a good one.

Hi Abrack no offense taken at all. I was actually making exactly this point, we simply say it in different ways. Do it the other way around it costs you 100% more. This is the life of an expat

would you both care to elaborate on that Abrak and Pkrv? the only asset i have in Thailand is the roof over my head and of course some cash in the bank. but neither has proceeds that match my financial needs. of course one could argue that owning the roof under which one sleeps compensates for rental expenses.

[pkrv]

Still the point that if you live in Thailand then you liabilities are here so you need assets to match them is a good one.

Hi Abrack no offense taken at all. I was actually making exactly this point, we simply say it in different ways. Do it the other way around it costs you 100% more. This is the life of an expat

would you both care to elaborate on that Abrak and Pkrv? the only asset i have in Thailand is the roof over my head and of course some cash in the bank. but neither has proceeds that match my financial needs. of course one could argue that owning the roof under which one sleeps compensates for rental expenses.

Hi Naam - you basically answered your own question. Because everyone is in a different position we all come at this from our own angle.

If you have a small UK pension and transfer this every month, and are renting, then your largest outgoing cost will probably be the rent. Since 2005 your spending power has decreased 50% (rate 75 - 50) some people are going ouch.

On the other hand if you made some provision to transfer funds to Thailand and are drawing on those for living expenses you are cushioned.

One of the reasons I bought when I did, and I always said this, is because GBP was high at the time 2005 75 to THB.

At the moment I only transfer small amounts of cash for holidays and to pay utility bills. I am holding off making large transfers at this time. When last we hit 50 in Jan 2009 I did say I hoped for an improvement in the next 1 to two years. My main hope is for an improvement by Jan 2011, which is conceivable. But I am in no hurry.

[mommysboy]

Without wishing to offend PKRV or others I would point out that talking about returns in GBP since 2005 is setting the bar a little low. I mean I would guess that the average Frenchman can claim that simply by putting his money on deposit (with dividends) he has achieved a 40% return in GBP.

Given the large number of currencies in the world choosing about the worst performing one to measure your returns is rather optimistic. Most investors would be writing down their GBP holdings as losses. (No wonder economists advocate positive inflation.)

Still the point that if you live in Thailand then you liabilities are here so you need assets to match them is a good one.

I always am puzzled why so many TVers are bearish of the baht. Theoretically (say PPP) it would imply everything here is overpriced so they probably wouldnt want to live here in the first place. (I mean sometimes people argue that they are moving to Thailand because they can have a better standard of living at the same price and then sort of argue that all their money is in GBP because the baht is going to collapse, which simply is illogical.) P.S. I do get the girl thing.

Don't see the logic here !!!. If someone has to write down losses on one side why is it not right to write up gains on the other (er- if you see what I mean ). Currency speculation after all is betting on one side against the other. The poster has indeed made a sizeable gain in actuality as far as I can see on this one strand of his life. Since a pound is still worth a pound in the UK, it can be felt as a tangible gain!

Correct me if I'm wrong but you cricise others for their bearishness but then suggest that the UK pound is worthless ( see green).!!! Care to elaborate?

[loverboy44]

The Pound is still a Pound in the Uk but not worth the Pound as before.

It feels like this to many people for sure but the UK is an importing country so everything that has to be imported is now more expensive than before the fall.

In my opinion the GBP will stay arround this rate and not rise.

I can't see any reason why.

[mommysboy]

The Pound is still a Pound in the Uk but not worth the Pound as before.

It feels like this to many people for sure but the UK is an importing country so everything that has to be imported is now more expensive than before the fall.

In my opinion the GBP will stay arround this rate and not rise.

I can't see any reason why.

Yes, sadly us expats have to work on this. I suppose we should count our blessings it may be the bt will weaken a little from now on.

(Yes imports more expensive, but exports should strengthen and people will start to buy home grown. I think it's obviously the strategy to turn UK in to a net exporter again. Greed being greed it won't be long b4 the speculators return with their masses of borrowed capital so that we can have the whole stupid cycle once again).

[Abrak]

Still the point that if you live in Thailand then you liabilities are here so you need assets to match them is a good one.

Hi Abrack no offense taken at all. I was actually making exactly this point, we simply say it in different ways. Do it the other way around it costs you 100% more. This is the life of an expat

would you both care to elaborate on that Abrak and Pkrv? the only asset i have in Thailand is the roof over my head and of course some cash in the bank. but neither has proceeds that match my financial needs. of course one could argue that owning the roof under which one sleeps compensates for rental expenses.

Well conceptually it does make sense to match assets with liabilities. A mismatch involves substantial risk 'over and above' the inherent risks in the assets involved. Now to a large extent you have covered a substantial portion of your liabilities by purchasing a house which clearly saves you rental expenses but also saves you from the cost of rental increases. (Say in some disney world type scenario that house prices were to double as well as rents over the next 5 years you are more than fully hedged.)

As for the remains of your expenses, the need for assets to match your liabilities is partly dependent on your wealth. If say again in the Disney World scenario the baht was to double overnight then your future liabilities would double verses your assets. Now of course that is highly unlikely to happen but if it did, if you have sufficient external assets then it may not trouble you to a large degree, you are not too bothered. If you were however to have limited resources AND wished to remain in Thailand it would cause financial distress. For instance if you were a retiree who lived in Thailand but kept his cash on deposit in GBP over the last 3 years you would potentially have seen a 30% decline in your living standards.

Now of course the exchange rate could have gone the other way and you would have a 30% increase in your living standards, you are simply taking on risk which many people with limited assets possibly cant afford. I will readily admit that if your outgoings external housing are say US$200k (in baht terms) and your non- Thai assets are say US$10m then to hedge those liabilities is fairly meaningless.

But to mismatch your assets and liabilities if you cannot afford the risk that is involved is imprudent.

[Naam]

Still the point that if you live in Thailand then you liabilities are here so you need assets to match them is a good one.

Hi Abrack no offense taken at all. I was actually making exactly this point, we simply say it in different ways. Do it the other way around it costs you 100% more. This is the life of an expat

would you both care to elaborate on that Abrak and Pkrv? the only asset i have in Thailand is the roof over my head and of course some cash in the bank. but neither has proceeds that match my financial needs. of course one could argue that owning the roof under which one sleeps compensates for rental expenses.

Well conceptually it does make sense to match assets with liabilities. A mismatch involves substantial risk 'over and above' the inherent risks in the assets involved. Now to a large extent you have covered a substantial portion of your liabilities by purchasing a house which clearly saves you rental expenses but also saves you from the cost of rental increases. (Say in some disney world type scenario that house prices were to double as well as rents over the next 5 years you are more than fully hedged.)

As for the remains of your expenses, the need for assets to match your liabilities is partly dependent on your wealth. If say again in the Disney World scenario the baht was to double overnight then your future liabilities would double verses your assets. Now of course that is highly unlikely to happen but if it did, if you have sufficient external assets then it may not trouble you to a large degree, you are not too bothered. If you were however to have limited resources AND wished to remain in Thailand it would cause financial distress. For instance if you were a retiree who lived in Thailand but kept his cash on deposit in GBP over the last 3 years you would potentially have seen a 30% decline in your living standards.

Now of course the exchange rate could have gone the other way and you would have a 30% increase in your living standards, you are simply taking on risk which many people with limited assets possibly cant afford. I will readily admit that if your outgoings external housing are say US$200k (in baht terms) and your non- Thai assets are say US$10m then to hedge those liabilities is fairly meaningless.

But to mismatch your assets and liabilities if you cannot afford the risk that is involved is imprudent.

i am well aware of your points but Thailand does not provide 0.1% of the investment opportunities i enjoy offshore. i am neither into real estate nor do i invest in stocks. but even if opportunities did exist i wouldn't invest in a country with the jurisdiction and the uncertainties (in all respects) like Thailand not to mention the antiquated banking system.

[Abrak]

Without wishing to offend PKRV or others I would point out that talking about returns in GBP since 2005 is setting the bar a little low. I mean I would guess that the average Frenchman can claim that simply by putting his money on deposit (with dividends) he has achieved a 40% return in GBP.

Given the large number of currencies in the world choosing about the worst performing one to measure your returns is rather optimistic. Most investors would be writing down their GBP holdings as losses. (No wonder economists advocate positive inflation.)

Still the point that if you live in Thailand then you liabilities are here so you need assets to match them is a good one.

I always am puzzled why so many TVers are bearish of the baht. Theoretically (say PPP) it would imply everything here is overpriced so they probably wouldnt want to live here in the first place. (I mean sometimes people argue that they are moving to Thailand because they can have a better standard of living at the same price and then sort of argue that all their money is in GBP because the baht is going to collapse, which simply is illogical.) P.S. I do get the girl thing.

Don't see the logic here !!!. If someone has to write down losses on one side why is it not right to write up gains on the other (er- if you see what I mean ). Currency speculation after all is betting on one side against the other. The poster has indeed made a sizeable gain in actuality as far as I can see on this one strand of his life. Since a pound is still worth a pound in the UK, it can be felt as a tangible gain!

Correct me if I'm wrong but you cricise others for their bearishness but then suggest that the UK pound is worthless ( see green).!!! Care to elaborate?

My point is very much along the lines of whether you see a pint glass as half full or half empty.

I agree a pound is worth a pound still in the UK. A zimbabwe dollar is still worth a zimbabwe dollar in Zimbabwe. If 3 years ago you had swapped your Zimbabwe dollars into US dollars and then invested in some stock that has subsequently halved you still may well be able to claim that you have made a 1000% return on your Zimbabwe dollars. That is fine but say from a US$ investor point of view (or practically anyone else) or they see is a loss of 50%.

Given the 30% fall or so on a trade weighted basis of GBP obviously most people can claim good returns on a GBP basis. To my mind claiming a currency gain on something that has fallen 30% against the index is optimistic. I mean imagine a fund manager saying to you 'we sold Enron at 100, bought x at 100 (which is now worth 80) but as Enron as gone to 1 we have made 80x times your money so we are charging you a massive performance fee.)'

And I am not saying that GBP is worthless, merely that if you have held GBP over the last 3 years in my mind given that it has fallen on a trade weighted basis, it is like a stock going down, you have effectively lost money. If you wish to call something that has traded in line with the index a gain compared to a loss that is fine with me. It is just that calling anything that has done better against something that has underperformed the index by 30%, a gain, is stretching it as far as I am concerned.

[Abrak]

Without wishing to offend PKRV or others I would point out that talking about returns in GBP since 2005 is setting the bar a little low. I mean I would guess that the average Frenchman can claim that simply by putting his money on deposit (with dividends) he has achieved a 40% return in GBP.

Given the large number of currencies in the world choosing about the worst performing one to measure your returns is rather optimistic. Most investors would be writing down their GBP holdings as losses. (No wonder economists advocate positive inflation.)

Still the point that if you live in Thailand then you liabilities are here so you need assets to match them is a good one.

I always am puzzled why so many TVers are bearish of the baht. Theoretically (say PPP) it would imply everything here is overpriced so they probably wouldnt want to live here in the first place. (I mean sometimes people argue that they are moving to Thailand because they can have a better standard of living at the same price and then sort of argue that all their money is in GBP because the baht is going to collapse, which simply is illogical.) P.S. I do get the girl thing.

Don't see the logic here !!!. If someone has to write down losses on one side why is it not right to write up gains on the other (er- if you see what I mean ). Currency speculation after all is betting on one side against the other. The poster has indeed made a sizeable gain in actuality as far as I can see on this one strand of his life. Since a pound is still worth a pound in the UK, it can be felt as a tangible gain!

Correct me if I'm wrong but you cricise others for their bearishness but then suggest that the UK pound is worthless ( see green).!!! Care to elaborate?

My point is very much along the lines of whether you see a pint glass as half full or half empty.

I agree a pound is worth a pound still in the UK. A zimbabwe dollar is still worth a zimbabwe dollar in Zimbabwe. If 3 years ago you had swapped your Zimbabwe dollars into US dollars and then invested in some stock that has subsequently halved you still may well be able to claim that you have made a 1000% return on your Zimbabwe dollars. That is fine but say from a US$ investor point of view (or practically anyone else) or they see is a loss of 50%.

Given the 30% fall or so on a trade weighted basis of GBP obviously most people can claim good returns on a GBP basis. To my mind claiming a currency gain on something that has fallen 30% against the index is optimistic. I mean imagine a fund manager saying to you 'we sold Enron at 100, bought x at 100 (which is now worth 80) but as Enron as gone to 1 we have made 80x times your money so we are charging you a massive performance fee.)'

And I am not saying that GBP is worthless, merely that if you have held GBP over the last 3 years in my mind given that it has fallen on a trade weighted basis, it is like a stock going down, you have effectively lost money. If you wish to call something that has traded in line with the index a gain compared to a loss that is fine with me. It is just that calling anything that has done better against something that has underperformed the index by 30%, a gain, is stretching it as far as I am concerned.

[mommysboy]

Without wishing to offend PKRV or others I would point out that talking about returns in GBP since 2005 is setting the bar a little low. I mean I would guess that the average Frenchman can claim that simply by putting his money on deposit (with dividends) he has achieved a 40% return in GBP.

Given the large number of currencies in the world choosing about the worst performing one to measure your returns is rather optimistic. Most investors would be writing down their GBP holdings as losses. (No wonder economists advocate positive inflation.)

Still the point that if you live in Thailand then you liabilities are here so you need assets to match them is a good one.

I always am puzzled why so many TVers are bearish of the baht. Theoretically (say PPP) it would imply everything here is overpriced so they probably wouldnt want to live here in the first place. (I mean sometimes people argue that they are moving to Thailand because they can have a better standard of living at the same price and then sort of argue that all their money is in GBP because the baht is going to collapse, which simply is illogical.) P.S. I do get the girl thing.

Don't see the logic here !!!. If someone has to write down losses on one side why is it not right to write up gains on the other (er- if you see what I mean ). Currency speculation after all is betting on one side against the other. The poster has indeed made a sizeable gain in actuality as far as I can see on this one strand of his life. Since a pound is still worth a pound in the UK, it can be felt as a tangible gain!

Correct me if I'm wrong but you cricise others for their bearishness but then suggest that the UK pound is worthless ( see green).!!! Care to elaborate?

My point is very much along the lines of whether you see a pint glass as half full or half empty.

I agree a pound is worth a pound still in the UK. A zimbabwe dollar is still worth a zimbabwe dollar in Zimbabwe. If 3 years ago you had swapped your Zimbabwe dollars into US dollars and then invested in some stock that has subsequently halved you still may well be able to claim that you have made a 1000% return on your Zimbabwe dollars. That is fine but say from a US$ investor point of view (or practically anyone else) or they see is a loss of 50%.

Given the 30% fall or so on a trade weighted basis of GBP obviously most people can claim good returns on a GBP basis. To my mind claiming a currency gain on something that has fallen 30% against the index is optimistic. I mean imagine a fund manager saying to you 'we sold Enron at 100, bought x at 100 (which is now worth 80) but as Enron as gone to 1 we have made 80x times your money so we are charging you a massive performance fee.)'

And I am not saying that GBP is worthless, merely that if you have held GBP over the last 3 years in my mind given that it has fallen on a trade weighted basis, it is like a stock going down, you have effectively lost money. If you wish to call something that has traded in line with the index a gain compared to a loss that is fine with me. It is just that calling anything that has done better against something that has underperformed the index by 30%, a gain, is stretching it as far as I am concerned.

Yes I can see the logic in its entirety and have no argumernt. My point is a bit more simple than that and pertained the notional gain in the example. It seems to me that if we have to write down (notional) losses in UK assets, its only right to also write up notional gains.

[pkrv]

Perhaps I could add something here.

My Wages and primary home (for the moment) are in the UK - essentially my life is invested here. However I now have a condo in Bangkok so also look at life from this angle too.

With Naam and Abrak they have a much wider viewpoint. From past posts they own properties in many other countries. These guys are not UK based and in a way you could describe them as of no fixed abode (only joking ). So IMO they just see the poor performance of GBP and assosiated assets.

For the rest of us the fall back is inevitably back to the UK if things go wrong. I have only just dipped my toe in the water with overseas property investment so am still finding my way.

Given I realistically only have two assets a UK Flat and Bangkok condo my fallback position to the UK has indeed improved about 100% (ish) in GBP terms.

I do however disagree with the zimbabwe dollar analogy what is their inflation? Sterling is doing badly but not that badly!

So fallback (I have to live!) up 100% if I have to 'call'.

UK assets are no longer so significant I can 'string out' bringing them out if I retire in Thailand, I am heavily cushioned.

This is Win Win from my perspective.

If I was Thai and had spare THB I would now be looking at the UK housing market.

My view point may indeed be simplistic from these guys’ perspectives, but it works for me - 'all my eggs are not in one basket' - 'I have hedged my bets' fortunately at just the right time.

I cannot take a larger world view; I simply don't have the spare cash!

Edited October 9, 2009 by pkrv

[chiang mai]

Perhaps I could add something here.

My Wages and primary home (for the moment) are in the UK - essentially my life is invested here. However I now have a condo in Bangkok so also look at life from this angle too.

With Naam and Abrak they have a much wider viewpoint. From past posts they own properties in many other countries. These guys are not UK based and in a way you could describe them as of no fixed abode (only joking ). So IMO they just see the poor performance of GBP and assosiated assets.

For the rest of us the fall back is inevitably back to the UK if things go wrong. I have only just dipped my toe in the water with overseas property investment so am still finding my way.

Given I realistically only have two assets a UK Flat and Bangkok condo my fallback position to the UK has indeed improved about 100% (ish) in GBP terms.

I do however disagree with the zimbabwe dollar analogy what is their inflation? Sterling is doing badly but not that badly!

So fallback (I have to live!) up 100% if I have to 'call'.

UK assets are no longer so significant I can 'string out' bringing them out if I retire in Thailand, I am heavily cushioned.

This is Win Win from my perspective.

If I was Thai and had spare THB I would now be looking at the UK housing market.

Well I'm British and I have some GBP (plus the odd THB) and I'm looking at the UK market with an even sharper focus, personally I think that UK housing could represent good value and a longer term investment, during the next twelve months - a life split between the two locations suits my outlook well.

[mommysboy]

Oh Gawd! me Paypal exchange rate dropped quite abit over the weekend. The bt is forging furteher ahead.

Is CM's prediction coming right?

Or is this merely the start of a 'pump and dump' cycle for the overpriced baht?

My gut feeling is we're in for an overly low priced pound for years to come but the baht is overvalued!

[Naam]

With Naam and Abrak they have a much wider viewpoint. From past posts they own properties in many other countries. These guys are not UK based and in a way you could describe them as of no fixed abode (only joking ). So IMO they just see the poor performance of GBP and assosiated assets.

i can't speak for Abrak but that i own property in "many" countries is a wee bit exaggerated fact is that i (actually we) owned (past tense) property in various countries; presently in four countries only.

[pkrv]

With Naam and Abrak they have a much wider viewpoint. From past posts they own properties in many other countries. These guys are not UK based and in a way you could describe them as of no fixed abode (only joking ). So IMO they just see the poor performance of GBP and assosiated assets.

i can't speak for Abrak but that i own property in "many" countries is a wee bit exaggerated fact is that i (actually we) owned (past tense) property in various countries; presently in four countries only.

See naam I told you I was hedging .

As a matter of interest some posts have been remarkably consistant since this topic was last discussed.

http://www.thaivisa.com/forum/Sterling-gbp...ad-t230559.html

The same strategies are in play

[cmsally]

Interesting to see that the AUS$ is holding up against many other currencies. My hunch was right on that one.

The articles on UK interest rates staying low until 2014 can't have helped the GBPs cause much. Which floor are we stopping at 50 or 45

[mommysboy]

Interesting to see that the AUS$ is holding up against many other currencies. My hunch was right on that one.

The articles on UK interest rates staying low until 2014 can't have helped the GBPs cause much. Which floor are we stopping at 50 or 45

50 I think and not budging from there. I don't think that reflects fundamentals but does reflect the way markets work. Hot on the heels of a BOT announcement on Friday of an overpriced bt, came one today saying it is in line with other Asian currencies. Why is Thailand such a headfxxx ?