Looking At The Depreciation Of RMB, Where Is The Direction Of Investment And Financial Management?

Against the backdrop of the devaluation of the renminbi, the US dollar will not be the only option for investors. From the past two years' experience, the dollar has been regretted by many people, and this situation may continue.

On the other hand, despite the probability of higher interest rates in the US at the end of the year, the uncertainty of the US presidential election process is enormous in the United States.

It also restricts the interest rate increase process. The US dollar index is approaching 100, which will also be harmful to US exports, thereby damaging the US economy. It is also a slow process for us dollar to continue to strengthen.

"In the beginning of 2014, we asked everyone to change US dollars!" looking at the depreciation of the renminbi, many people who thought themselves to be prescient liked to flaunt their vision.

With the US dollar approaching the 6.8 mark against the yuan, whether or not to continue to change the US dollar has become a hot topic of discussion among many people.

Looking back, however, investors have been regretting the change of dollars since 2014. For example, they missed the big bull market which began at the end of 2014.

The reason why we continue to look at the RMB is nothing more than these, for example, the Federal Reserve is about to raise interest rates, the US dollar index is rising, capital flows back to the United States, the non US currencies have depreciated, and the competitiveness of China's manufacturing industry has declined, which requires RMB to continue to depreciate and enhance export competitiveness.

Beginning in January 2014

In the process of devaluation, the central bank lowered its interest rates several times, and under the loose monetary policy plus the good anticipation of "reforming cattle" and "innovating cows", it gave birth to a huge bull market before June 2015. Although it experienced three rounds of stock market crash, the current Shanghai Stock Index index of 3100 points is still more than 50% higher than that of early 2014, and the stock market obviously outperformed the exchange rate of the US dollar to the RMB, only rising from 6.04 to less than 6.8 at present.

Take a look at the property market. In 2015, with the full start of the Shenzhen property market, the policy of encouraging the stock to go out has been promulgated, and policies have been encouraging residents to buy houses with leverage. In less than two years, the price of property in the first and second tier cities has doubled and doubled, and the rise in property prices has also come to the craziest stage.

Although in October 2016, there was a strong policy pressure. But compared with a large number of investors who exchange dollars, investors in the real estate market are still the big winners.

In fact, after changing the renminbi into dollars, if investors are not buying the best performing part of US dollar assets, such as some US listed technology stocks, the performance of portfolio in the past two years is almost impossible if we want to comprehensively defeat the most important domestic assets, the stock market and the real estate market.

The massive release of global central banks in the past few years

It does not mean that it can be collected, and these liquidity will continue to switch between various assets as long as a certain asset has enough money effect.

The recent surge in A share infrastructure has set off a prelude to a possible "autumn harvest market". A shares have begun to warm up, and investors also need to pay attention to it. After the B-share crash, the analysts who advocated A shares are likely to be "hit the face" because of the "learning effect".

With the implementation of the regulation and control policy of the property market, the investors who have the idea of investing in the property market are bound to consider investing in other assets. In the context of domestic capital outbound investment, this part of the capital is not easy to find the money effect of money, which will probably turn to other assets and make the price of all kinds of assets move continuously. At present, it seems that commodities, precious metals and stock markets are likely to be the target of carrying on these funds.

In addition, after the depreciation of the RMB, enterprises with the US as the main export destination are also expected to benefit, and there are many A shares related targets to choose from.