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If you are China has $3 trillion in reserve, how do you invest?
Posted: Wed Dec 14, 2011 10:08 am
by Odysseusa
I put $1 trillion in Permanent Portfolio in Asia,
$1 trillion in Permanent Portfolio in Europe,
$1 trillion in Permanent Portfolio in USA.
Re: If you are China has $3 trillion in reserve, how do you invest?
Posted: Wed Dec 14, 2011 10:25 am
by Storm
Odysseusa wrote:
I put $1 trillion in Permanent Portfolio in Asia,
$1 trillion in Permanent Portfolio in Europe,
$1 trillion in Permanent Portfolio in USA.
You can't really do an effective PP on a $trillion scale. Do you know what would happen if someone tried to buy $250 billion worth of gold, equities, or treasuries?
I suppose you could start your own mutual fund and invest in individual equity and treasury positions, but you'd definitely have to average in over a multi-year period of time.
Re: If you are China has $3 trillion in reserve, how do you invest?
Posted: Wed Dec 14, 2011 12:01 pm
by stone
I got the impression that China is trying to divest some of their reserves as gold but it is a very slow awkward process. They can only really buy significant amounts when other people are panic selling. China is the worlds largest gold producer aren't they and they buy up all of the domestic supply (600 tonnes per year?). I think it is a bit simplistic to compare the Peoples Bank of China to an individual. They have currency reserves more as a way to peg the Yuan exchange rate so as to boost exports and to depress the real value of the earnings and savings of Chinese workers. I guess they want every one in China to be kept busy.
Re: If you are China has $3 trillion in reserve, how do you invest?
Posted: Sat Dec 24, 2011 4:59 pm
by goldfinger
Secure resources
Buy technology
Buy human capital