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Is exchanging US dollars for Chinese Yuan a good long term investment?


As the dollar decreases in value, and as China continues to grow, is this a good idea?

don't do it. The value of the Yuan is fixed to the US Dollar. Be wary of the vlue of the Yuan since China's being pressured to stop artificially devaluing the Yuan. The currency market is aware of this and you will not see much profit from this compared to the exposure of risk.

No. Stop and think about what is happening in the news. All
products from China are having problems. Our pets get sick from products used in dog food from ingredients from China,
cardboard has been found in human food, and the list goes on, and on, and on. China is going to suffer an economic
recession from all of this. The Chinese have no respect for life
ours or theirs. Keep up with the news if you want to invest

look into Brazilian currency instead.

Traditionally the Chinese have actually tried to peg the yuan to the dollar (ie keep in trading at a stable price). They are under some pressure from the US to revalue, but the Chinese, who want their exports to appear inexpensive to Americans, have a strong incentive to keep their currency from appreciating against the dollar. Instead of investing in currency directly, consider investing in Chinese stocks (though apparently some people think that the Chinese stock market is in a bubble.)

Should you invest your money in China's yuan or even its stock market?

The stability of China's currency over the long run is a big question. At some point the Chinese government could again decide to freeze its currency.

You might do better to look at investing in equities. In the long run, equities generally always outperform other types of investments. Then, is investing in the Chinese stock market a good idea?

Listed companies in China are more serious about corporate governance issues, being transparent, and creating shareholder value. However, China's capital markets still have a long way to go. The quality of financial data published by companies is lacking, while macroeconomic statistics from the government are often suspect. Without these tools, it's difficult for even the most sophisticated of investors to make the right calls. Even Warren Buffet would be a speculator if he moved to China!

You'll do well to put your money in American mutual funds. Look for funds that have a good return (over 15% average per year) with a a low volatility over the long term (5 to 10 years). Historically, funds that have done well in the past will continue to do well in the future. With a mutual fund you get a professional mutual fund manager, who studies the market 80 hours a week and who has a proven ability to pick winners for you. If you find 3 or 4 good mutual funds, ignore the ups and downs of the market and the endless speculation about interest rates, in the long run your portfolio will reward you.

For more, try reading "One Up On Wall Street" by Peter Lynch. Good luck!!

you bet it is good idea of exchanging us dollars for yuan, us dollar to chinese yuan exchange rate is going down and down. it is no any sign can stop it.

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