A fund manager has projected the Australian Dollar is about to crash to around US40c, and not surprisingly, it’s going to suck.
Vimal Gor of BT Investment Management in Sydney has a solid track record of predicting financial trends, and in a recent newsletter has suggested the AUD could hit an unbelievable low.
“We had originally thought 50c versus the US Dollar was achievable but our recent analysis highlights that we have been too optimistic and that 40c is now our base case,” wrote Gor in the newsletter.
With the AUD currently sitting around US74c, online shopping is already a little expensive compared to the glory days of 2012. If the 40c prediction is correct though, lavish online purchases are about to become the sort of misty-eyed memory we tell our kids about in 2025.
“Sit here Billy and let me tell you about the time I copped a pair of Quai 54 Vs online for AU$450”
It might not be time to panic, as a Bloomberg survey forecasts the AUD hitting US72c by the end of 2016, before bouncing back over the next few years. But check the carnage if Gor’s prediction is right.
While your first thought around a US40c AUD might be centred around online shopping, what happens if you’ve booked yourself a trip to the US?
Basic shit like lunch is all of a sudden going to be a significant investment. That customary trip to In-N-Out Burger for a Double Double just almost doubled in price from AU$4.66 to AU$8.63. If you choose to hit McDonald’s instead, it’ll be even worse – your Big Mac is gonna run you AU$12.33, and that’s before you even add fries and a Coke.
Accommodation, experiences like NBA games or even buying a pack of Twinkies to take home and give your mates cancer will become ridiculously expensive. If you wanted to ball out and cop reserved tickets to catch Future at Drai’s Las Vegas, it would cost you AU$25,000. No amount of Dirty Sprite is worth that.
If you’re not travelling any time soon, this is where it’s gonna hurt you. Anyone using VPNs and paying for US Netflix is about to get slapped in the stack when they start paying $22.48/month for the streaming service.
Basic NBA jerseys will go from an OK $135 to a ridiculous $250, but our thoughts are with the Hypebeasts at this difficult time – what will they do when the reseller price on Supreme box logo crewnecks goes well above $1,000?
Even copping hyped heat at retail will hurt. US$350 retail for a pair of Yeezy Boost 750s equates to AU$1200. This sucks.
