Converting UK pounds into British Dollars

tstillwell

Hey everyone,

I'm am inexperienced in the stock market but I have noticed how strong the pound has got recently compared to the dollar.

I am a student and don't really have money to lose. Would you suggest that I converted money into US dollars and waited for the US dollar to become stronger again and then change it back to pounds? Or do you think the pound is going to stay strong against the dollar for a long period of time (e.g. not drop below 1.6 this year)

This is my first thread and any advice would be greatly appreciated,

Many thanks,
Tim

whambamboo

tstillwell wrote:

Hey everyone,

I'm am inexperienced in the stock market but I have noticed how strong the pound has got recently compared to the dollar.

I am a student and don't really have money to lose. Would you suggest that I converted money into US dollars and waited for the US dollar to become stronger again and then change it back to pounds? Or do you think the pound is going to stay strong against the dollar for a long period of time (e.g. not drop below 1.6 this year)

That may never happen. It might not drop below 1.95, never mind 1.6.

The $ was previously 5 to the £, anyone waiting for this to happen again would probably die before it happened.

Currency speculation is gambling, not investment.

Avoid.

Invest in shares or in a bank account, not currency.

ManAtHome

Lost 1% or something yesterday... but gained around 14% over the last year...

Opinions are split as to this year - there's a general feeling that the dollar will drop against some currencies, dunno about the pound though as we have similar structural problems.

If you don't have money to lose (like most of us), would suggest you stick it in a high-interest savings account - over 5% guaranteed (currencies possibly plus or minus 8-10% - my guess, probably wrong!).

jamesd

It's a very high risk activity. There are major threats to the long-term value of the US Dollar, in the form of a huge trade imbalance and massive Dollar holdings in countries like China. Pick something less dangerous unless you need Dollars anyway and don't mind having the money stranded there for a long time.

If you want something to make money, still with a significant chance of losing it in the short term, try stocks and shares investing in fairly high risk funds, like BRICs or some of the Asia-Pacific types. It's fairly sure that long term those will rise and let you get your money out without a loss. But don't consider it if you will need the money within a year - these are really for a five year horizon.

ashm1

tstillwell wrote:

Hey everyone,

I'm am inexperienced in the stock market but I have noticed how strong the pound has got recently compared to the dollar.

I am a student and don't really have money to lose. Would you suggest that I converted money into US dollars and waited for the US dollar to become stronger again and then change it back to pounds? Or do you think the pound is going to stay strong against the dollar for a long period of time (e.g. not drop below 1.6 this year)

This is my first thread and any advice would be greatly appreciated,

Many thanks,
Tim

I looked at dollars before Christmas but decided against it due to the risk. I personally couldn't make up my mind where I saw the US economy going (lots of mixed signals). Oil has taken a hit recently. Is this a good time to pick up energy and mining stocks ?

When I was a student I tried to maximise tax free £3000 cash ISA contributions in the summers when I worked.

Are you funding your saving / investing from the student loan ?