My investment strategy is put everything Chinese index funds
My investment strategy is put everything Chinese index funds
To clarify something, I’m not some boug. I worked at a job for years where they put money into a 401k as part of the benefits, and I was there long enough that it vested. So I have a few grand that’s locked up in an IRA that I can’t get into until I retire.
Here’s my simple strategy: I’m putting everything into Chinese index funds / stonk ETFs.
My rationale: it’s all about the emotional risk management.
What I mean by that statement is, in the past when one of my sports teams I root for has made it into the final round of the playoffs, I would place a small bet against them. Because if they win, I won’t care that I lost some money. But if they lose, I’ll at least have a bit more $$$ in my pocket, it’s a small consolation but it helps.
So how does this relate to China and investing? The way I see it, there’s likely one of two scenarios for where the Chinese economy will be a few decades from now when I can take that money out. Either A.) the CPC more or less just continues on with what it’s been doing since Deng. Continue to develop the productive forces, continue to rack up W after W while the west implodes on itself, and the Chinese corporations I’m invested in will do great - stonks go up and I have a nice little savings built up.
Or B.) CPC pushes the communism button in 2050 or so, they nationalize all the corporations, and I lose the whole investment. But you know what, WHO CARES?! THEY PUSHED THE BUTTON! That would literally be the best thing that I could ever see happen in my lifetime, and the last thing I would care about would be my IRA.
Seems like no matter what, I end up a winner 😎
lol this is a tumblr post from 2019
the use of the word tankie here is ironic the tumblr user Edwad is cool so don’t get mad
genuinely salient description of the tendencies of both groups
What if the US goes to war with China before they push the communism button and all your assets are seized? Is that the "I lose but I don't care anymore scenario?"
You might want to ensure you can pull your winnings out so you can leave before the big one hits.
Thinking about it now, dont a lot of big bougies have buisness interests in china? Would the white house risk doing anything more substantial than the current performative bullshit if it meant pissing them off?
If this isn't a bit; don't think it's that simple, look at China indexes performance the last couple decades, it's pretty shit
I won't recommend Chinese stocks or index funds either unless you're reading Chinese news everyday. The government doesn't give special treatment to corpos so once they find themselves in trouble, they and their stocks are fucked.
Investing your money in a foreign country leading the way in standing up against the influence of foreign investors. Bold strategy. Viewed as a donation to China, I like it. Just don't expect to retire on it
Is there any data on how well your portfolio would have performed if you did this 10 years ago? Compared to a normal/good US index.
This is literally what the national bourg of the western consensus fears most, hence the constant "China's economy is going to collapse any day now" posting in the media.
ok:
- What is an index fund
- How is this any less exploitative than trading stocks
- Are there any forms of financial investment that aren't inherently exploitative or based on stolen surplus value
- Even if there is, is it even worth it? Is this all a waste of time?
- No clue
- It probably isn't
- I'm going to guess no with confidence
- There aren't so it doesn't matter. If there were then probably not worth it.
I know this isn't helpful, just wanted to share in not knowing shit about index stonks. Saw a lot of posts about investments today and I'm just like ??? Y'all got stonks ??? I know nothing about that stuff
At risk of emitting lethal levels of
energy, what makes buying stocks any more problematic than buying any other consumer or luxury good from a company? I have a hunch it’s mostly going to lie in the people who you sell to once it’s more valuable basically being scammed, but I think there’s more to it.Index funds are big pots of money that automatically purchase stocks based on preset conditions (Usually how valuable the company is). When you put money in those money are used to purchase these stocks.
What is an index fund
An index fund is fund that automatically invests in stocks based on their position in the stock market or other preset condition (But most just track the biggest companies). Basically it automatically purchases stock in the most valuable companies.
What about the pessimistic option (C), where the Chinese economy stagnates or collapses and you just end up losing money?
Make a straddle and long SPY
Edit: too many of you know what a straddle is
I own a bunch of Chinese stocks. They haven't performed very well compared to my American ones, but I see them as a long-term deal because I genuinely expect the American economy to face an unrecoverable crisis in my lifetime.
Aww shit, I just realized I'm a prepper. Oh well time to dig out a bomb shelter.
Ok but actually, does anybody have suggestions like this on how to redirect money that otherwise would have been destined for something like a 401k? I’m interested in finding a way to invest in the global south or at least just find a way to convert cash into some durable value that could support me during a period of extended financial hardship
I also have a lot of faith in the future of the Chinese economy, but it's still worthwhile to manage risk by diversifying. At a minimum I don't see why you wouldn't invest in Vietnam too. China isn't the only AES state integrated with the world market. A regional southeast Asian fund is also an option.
Vietnam probably has a lot more growth to go compared to China too - though I think the real smart bet right now is in Belt and Road countries, of you're looking thirty plus years out.
Belt and Road countries are literally most countries. It's likely to be a safe investment overall, as it's one of the most diversified strategies. I think some B&R countries seeing relatively poor returns must be expected though.
C.) They push the button, but it gets stuck halfway and only your assets get seized.
but do you live in China? because you won't exactly win in 2050 if they push the button and you're not there
i humbly disagree. it's a win for the world.
