8% GDP growth for Vietnam, better than 5% for China, investable?
Per Reuters, Vietnam is poised to grow at 6.5% to 8% for 2025 target. This is much higher than China of maintaining at 5%. Does a higher GDP growth translate to one parking funds to this country?
Let's take a look at the VNM ETF. We can see since 2010 it has been heading south and has not yet recovered. That is 15 years , a very long long time.
Almost more than 60% downfall from its peak of 32 dollars to current price of 12.44. It is not wise to invest just because the price has dropped significantly coz the low or lower price in weeks or months to come could stay for another 5-10 years. I don't know.
One important factor in considering whether to invest is NOT to let mainstream news , no matter how popular they are, attention - grabbing titles or got 5 million views from some influencers promoting it.
Get Real. Investing is to make long term returns and if after 15 years you are still bleeding , no matter big or small paper loss, it goes to show your initial selection of country/stock was wrong.
Diversification then becomes an essential part of investing. The world do not operates on a linear basis, it goes in cycles much like the 4 seasons. With a good basket of different sectors stocks, you are protected from the down swing moves of one particular or heavily concentrated sector/country.
So for example, when my US tech stocks is down like 10-12%, my HK/China tech stocks are rallying, this compensates and bring balance to my overall portfolio. This allows me to sleep better at night.
What about you?
Let's take a look at the VNM ETF. We can see since 2010 it has been heading south and has not yet recovered. That is 15 years , a very long long time.
Almost more than 60% downfall from its peak of 32 dollars to current price of 12.44. It is not wise to invest just because the price has dropped significantly coz the low or lower price in weeks or months to come could stay for another 5-10 years. I don't know.
One important factor in considering whether to invest is NOT to let mainstream news , no matter how popular they are, attention - grabbing titles or got 5 million views from some influencers promoting it.
Get Real. Investing is to make long term returns and if after 15 years you are still bleeding , no matter big or small paper loss, it goes to show your initial selection of country/stock was wrong.
Diversification then becomes an essential part of investing. The world do not operates on a linear basis, it goes in cycles much like the 4 seasons. With a good basket of different sectors stocks, you are protected from the down swing moves of one particular or heavily concentrated sector/country.
So for example, when my US tech stocks is down like 10-12%, my HK/China tech stocks are rallying, this compensates and bring balance to my overall portfolio. This allows me to sleep better at night.
What about you?
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.