This prediction is both plausible and bold. It’s plausible because Singapore has many structural strengths, such as an open economy and a competitive logistics and finance industry. If productivity continues to improve and Singapore keeps attracting capital and investments, a modest currency appreciation would be reasonable. That said, reaching parity would represent a significant appreciation, and there are many factors at play.
If the USD continues to weaken, I may reduce my US equity holdings slightly and increase my allocation to gold and SGD-based assets, especially dividend-yielding stocks. However, since 2040 is still a long way off, my portfolio will likely remain heavily weighted toward USD-based assets for now, while keeping in mind the importance of staying adaptive.
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