JP,
   Currency is in behalf of economic status, Korean and Taiwan dollar depreciated markedly recently, this
revealed they got some troubles in economy. I’m not sure about Korean part, and Taiwan is too relied on
export to sustain their economy. So when Uncle Sam stops buying, Taiwan needs to handle their huge
production capability and inventory. Depreciating their currency seems the only way can apply in the
short term. Economic topic is more boring, I would like to discuss the investment part with you first.
 You should always buy strong currency, if you want to invest currency. Stock market and currency
always go the same direction. Strong currency means strong economic growth, investing in strong currency
can earn both capital gain and exchange gain. And when one country’s currency starts to depreciate,
foreign investment (hot money) will start to run out, and this will make depreciation become more severe.
I won’t purely invest foreign currency, it’s hard to profit. Let’s check Bank of Taiwan for US dollar
exchange rate. They buy 1 US dollar for NT$33.975 and sell 1 US dollar for NT$34.517. Do you get the
picture? There is 1.6% gap for transaction (buy and sell), this means you just start to gain if US dollar
appreciated more than 1.6% ($0.56). What if the trend is opposed to your guess?
 Like another investment, you shouldn’t invest something just because their price was dropped
markedly. Sophisticated investor always invests those that their value is under their price. The
difficulty is the value is dynamic and hard to “value”. That’s why investment is interesting.
Adonis
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