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Esteemed Contributor
Posts: 6,504
Registered: ‎05-22-2014

@reiki604 wrote:

The stock market goes up and the stock market goes down. That's why a wise investor is diversified in the kind of and places they invest. The stock market has mor than doubled since 2009. Even though my portfolio went down today,it is up mor than 8% this year so far. I am very happy!


Interesting posts here.  Reiki604 makes some valid points here.  If you watch Bloomberg Business news, or read their periodical, you'll note that the market gets jittery at any change or rumors of change.  Still, in the scheme of things, if you invest wisely and also diversify, it is the best way to make money long term.  There have been rumblings about China for a while, and things will even out.  Nothing will crash.  Economics is a quirky science - it is a science but an emotionally impacted science.  But facts are facts, and can and should be checked out.  Don't know where some get their information from - I shudder to think of where.  If anyone follows financial news, China's problems are nothing new.

Respected Contributor
Posts: 3,596
Registered: ‎03-10-2010

China devalues currency again day two.....

Respected Contributor
Posts: 3,596
Registered: ‎03-10-2010
Respected Contributor
Posts: 3,240
Registered: ‎03-09-2010

Re: Currency devaluation

[ Edited ]

@esmeraldagooch wrote:

China devalues currency again day two.....


Relax.............the sky isn't falling. It's just the natural way the markets work.  If a person cannot handle the fluctuations and flow of the markets they should not be in them. It's a long term strategy not suggested for the nervous. There is also risk with any investment. If a person is not willing to take risk then leave your money in safe CDs or money market accounts. You won't make much in interest but you won't lose anything either. Life is all about choices. Not what ifs.


'I refuse to engage in a battle of wits with an unarmed man'.......Unknown
Esteemed Contributor
Posts: 5,135
Registered: ‎06-15-2015

 

 

My thoughts?  What's new they've been doing it for many years now, and the donald has been saying it for the same amount of time, but I don't think anyone was listening.

hckynut(john)
Valued Contributor
Posts: 767
Registered: ‎07-12-2010

While a market can certainly CRASH, most of the time currency value is always fluctuating.

 

Some deflations of value are a sign of a sinkhole. But others are an effect of a market that is continually adjusting itself.

 

In a sense, sometimes to understand a wave of devaluation, one must look back to a period when that same commodity (or currency, in this case) rode a wave to high valuations.

 

Nothing can maintain itself at such a constant as to never see a its ups and downs on a daily basis sometimes. Its why the world does panic at every dip. Its also why the world gets reckless or smug when a valuation increases.

 

Best to never get too reactive to either as either are always prone to continual change.

 

If China's currency continues to deflate, heck maybe the next US President and Congress can take the opportunity to either pay off more our deb (or interest) to them quicker OR renegotiate terms. So while the whole house of cards can fall (which is always the fear and the focus of most money watchers) it can also possibly sometimes become an opportunity to see economies and all that encompasses adjust or create new dynamics.

 

This is why even former supporters of NAFTA have, over time, come to resent it. What was intended to strengthen the North American continent by mostly strengthening the Mexican economy, now has people wondering why a now-essentially rich Mexico still needs so much economic favor from the US (which in turn has suffered as a result). What works in 1994 or the 90s just might not work or be as necessary in 2015 and beyond. Because economies are always fluctuating or changing. None of it is static.

 

Even Occupied Japan didn't require so many decades of help after WWII to get its economy on track. What is a necessity at one time economically doesn't remain static unless sometimes people come to think of it as something ever-unchanging.

 

In household terms it would be the difference between helping a brother-in-law get back on his feet after serving in Iraq or losing his business who then gets his act together (and therefore no longer needs the money and might just even pay you back) versus helping the brother-in-law on the couch in the basement who, thirty years later, is still on your couch but is now not only still scratching his belly but also complaining to you that the ice cream you buy isn't his favorite.

 

We can either prompt change or foster a lack of change by interceding with our money in either right or wrong ways. People in charge of our world and global economics would do well by taking a lesson from what is the Economics of the Basement. IMHO