Some Thoughts on Currency Investing 9.7.2016

Article: JIM ROGERS: ‘If we all bought North Korean currency, we’d all be rich someday’

Friend: Yeah, I think it’s a bit more complicated than they make it out to be.  Syrian pound went up 20% after Bashar took power though.  Stayed relatively flat, except for conflict with Israel in 2006, but of course it completely tanked in more recent years.  I’ve been watching Cuba too.  I think Cuba is probably the safest bet out of all of them.

Trevor: Maybe the spike in the Syrian Pound pre war can be a warning about how events can change rapidly.  Actually interesting to think just about that in particular because it shot up because Bashar was viewed as a relatively good guy in the region.  An eye doctor who spent a lot of time in the UK.  I don’t think the analogy of betting on the Chinese currency around the same time as China was reforming is great because I don’t think you would of made money (Looking this up it seems to be very TRUE).  China along with many developing countries aggressively hold down the value of their currency as a way of making their exports more competitive.  I think real estate could be a very good proxy for betting on a country’s economic growth.  But buying North Korean property is probably a little difficult.  Trading currencies are for short term trading gambling on a country’s central bank policies and trade flows.  Not investing in my opinion.  Just some thoughts….

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