Before you had the luxury not to invest, CD might be a good alternative. But now Renminbi just broke 7 and it is on the way to 6, 5, even 2, where Jim Rogers projects in the foreseeable future. With the speed like that, I don't see any directions other than that. If you have no plan to go back to China, no education plan for your kids, or no retirement plans, you can skip this. If any of the above occurs to you in the night, you are now FORCED to invest. You are now FORCED to beat the market.
I will skip the education and retirement plans here, since they are common sense to most people. I will show you how scary it is to Chinese people earning dollars when Renminbi appreciates to 2.
If you make $50,000 or Renminbi 350,000 a year, a regular wage in the States, you are still treated as a gold collar in China right now. This will change dramatically when a dollar can only get two yuan. Then you are making Renminbi 100,000 a year, which is just a little more than the wages of a masseuse at Liangzi, Beijing, who came directly from a Henan village, without much education.
Everybody knows the price of automobiles and housing in Beijing is high, what about groceries? Unfortunately I tossed away the last receipt which is over Renminbi 400 for a trip to a supermarket called Yichulianhua, I will definitely attach it next time.
I hope you get what I am saying. If you have money, buy Chinese asset; if not, make extra money by investing and then buy Chinese asset. I don't want you to be shy on your pocket when you go back to China next time, your Chinese relatives will look down on you. From where? America?
No comments:
Post a Comment