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submitted 10 months ago* (last edited 10 months ago) by Greenleaf@hexbear.net to c/chapotraphouse@hexbear.net

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 😎

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[-] HauntedBySpectacle@hexbear.net 7 points 10 months ago

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.

[-] Sinistar@hexbear.net 6 points 10 months ago* (last edited 10 months ago)

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.

[-] HauntedBySpectacle@hexbear.net 4 points 10 months ago

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.

this post was submitted on 01 Feb 2024
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