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Hi Stuart,
Do you beleive that China will be the New Reserve currency?
Will the IMF make it happen this year and how do you think it will playout?
What changes would you do?
No I do not think that China will be THE NEW Reserve Currency in the near future, below are a few reasons why I believe this to be the case:
1. 62% of the worlds reserve currency is in USD and 24% is the Euro
2. Government transparency, how many people truly understand how the Chinese government operate, this all increases risk of holding this denomination of currency and there is little trust in the stability of China. I appreciate that many articles are appearing online about the growth of the currency, however a lot of this hype is fueled by Russian and Asian publications that wish to see the demise of the USD
3. History is always on the USD’s side. Whenever the world enters economic turmoil, the world dump their cash into USD, not to mention that commodities are priced in USD! I feel that to swing this to Yuan is going to take decades and certainly not years.
Back to your question, I certainly do not think it will be the new reserve, but I do believe it will get a reserve currency status, like the USD and the Euro. China is gaining pace and its middle class is growing, this being said, its all own to its very poor finally hitting the middle class. Most developed nations already made that poor to middle class jump, hence they will not grow this as quickly as chine.
I appreciate that the US has a number of major issues, are pumping too much money into the economy and have horrendous debt levels, but this does not change investor sentiment and that most of the major investors and nations will flock to the USD when strife happens!
Most of these people that write about the Yuan becoming the USD, most probably do not hold any Yuan themselves and ironically probably to hold USD. This may be a large assumption, but that questions should be posed to them.
Ask your friends the same, how many hold the Yuan in any amount?
Ask how many hold USD?
I’m guessing that you will be hard pushed to find any of your friends physically holding Yuan in a bank/investment account.
I have been talking about a housing market correction for some time now and I personally feel that the banks are not as keen to lend and with the current economic climate, i believe that buying property anywhere in KL is a bad idea.
There are some distressed sales creeping in and I believe this to increase over the coming months.
I know its a vague answer, but its all down to the price and what you are getting?
At the moment I feel that KL is heavily overpriced and when the banks stricken up on lending and start collecting debts, you will see a housing correction. I know agents tell prospects that everything is great, but I have a number of friends in this line of work and they will admit its tough out there at the moment.
I have RM 3.2 million in M’sai right now, supposed to buy a penthouse in KL last Dec. last year. Do you have any good idea to invest at the moment?
Thanks.
Steven
Hello Steven,
I think the best idea is to meet up and discuss some other options with you.
My office is in KH Tower, which is behind the Shangri La Hotel.
Are you free to drop by this week or next?
Regards
Stuart
Hi Stuart,
Given the current favourable UDS to MYR exchange rate I’ve just bought MYR with a view for Malaysian property purchase. Two Q’s: 1. Do you think there will be a noticeable reduction in the house prices, or more of a stagnation and prices to stay flat? 2. What is your view on the MYR to USD this coming year?
Honest answer, I would not touch Malaysian property with a barge-pole at the moment. I think the house prices are totally inflated and the market is correcting as we speak. People are being told by agents that its a tough market and they are saying the prices are flat. I feel the prices are falling, but there has not been a total collapse as of yet!
Look at the rentals…..they are in many cases half where they were 3 years ago and more and more empty units are on the market, not to mention more new builds that nobody wants. The developers seem to be reasonably successful in getting a buyer in, but the quick flipping to a second owner is slowing down.
For MYR to USD, I still think MYR will go further, there is room for a recession here, but with Trump at the steering wheel, who knows what the USA is capable of, so its a difficult question and my opinion will most likely change throughout the year!
Stuart Yeomans 
Hi Stuart,
Do you beleive that China will be the New Reserve currency?
Will the IMF make it happen this year and how do you think it will playout?
What changes would you do?
Rich
Hi Rich
No I do not think that China will be THE NEW Reserve Currency in the near future, below are a few reasons why I believe this to be the case:
1. 62% of the worlds reserve currency is in USD and 24% is the Euro
2. Government transparency, how many people truly understand how the Chinese government operate, this all increases risk of holding this denomination of currency and there is little trust in the stability of China. I appreciate that many articles are appearing online about the growth of the currency, however a lot of this hype is fueled by Russian and Asian publications that wish to see the demise of the USD
3. History is always on the USD’s side. Whenever the world enters economic turmoil, the world dump their cash into USD, not to mention that commodities are priced in USD! I feel that to swing this to Yuan is going to take decades and certainly not years.
Back to your question, I certainly do not think it will be the new reserve, but I do believe it will get a reserve currency status, like the USD and the Euro. China is gaining pace and its middle class is growing, this being said, its all own to its very poor finally hitting the middle class. Most developed nations already made that poor to middle class jump, hence they will not grow this as quickly as chine.
I appreciate that the US has a number of major issues, are pumping too much money into the economy and have horrendous debt levels, but this does not change investor sentiment and that most of the major investors and nations will flock to the USD when strife happens!
Most of these people that write about the Yuan becoming the USD, most probably do not hold any Yuan themselves and ironically probably to hold USD. This may be a large assumption, but that questions should be posed to them.
Ask your friends the same, how many hold the Yuan in any amount?
Ask how many hold USD?
I’m guessing that you will be hard pushed to find any of your friends physically holding Yuan in a bank/investment account.
regards
Stu
Hi Stuart,
Thanks for such a quick reply. I do feel a little bit better now.
Everyday you hear something new and I feel more lost.
Hope to see you next month.
Rich
Yes, see you in a few weeks.
Regards
Stu
Hi Stuart, it’s the right time to invest property at Ampang, your promptly reply will be highly appreciated with many thank.
Hi Steven
I have been talking about a housing market correction for some time now and I personally feel that the banks are not as keen to lend and with the current economic climate, i believe that buying property anywhere in KL is a bad idea.
There are some distressed sales creeping in and I believe this to increase over the coming months.
I know its a vague answer, but its all down to the price and what you are getting?
At the moment I feel that KL is heavily overpriced and when the banks stricken up on lending and start collecting debts, you will see a housing correction. I know agents tell prospects that everything is great, but I have a number of friends in this line of work and they will admit its tough out there at the moment.
Hope the above helps.
Stu
Hi Stu,
Happy New Year!
I have RM 3.2 million in M’sai right now, supposed to buy a penthouse in KL last Dec. last year. Do you have any good idea to invest at the moment?
Thanks.
Steven
Hello Steven,
I think the best idea is to meet up and discuss some other options with you.
My office is in KH Tower, which is behind the Shangri La Hotel.
Are you free to drop by this week or next?
Regards
Stuart
Hi Stuart,
Given the current favourable UDS to MYR exchange rate I’ve just bought MYR with a view for Malaysian property purchase. Two Q’s: 1. Do you think there will be a noticeable reduction in the house prices, or more of a stagnation and prices to stay flat? 2. What is your view on the MYR to USD this coming year?
Cheers
Paul
Sorry for the delay Paul.
Honest answer, I would not touch Malaysian property with a barge-pole at the moment. I think the house prices are totally inflated and the market is correcting as we speak. People are being told by agents that its a tough market and they are saying the prices are flat. I feel the prices are falling, but there has not been a total collapse as of yet!
Look at the rentals…..they are in many cases half where they were 3 years ago and more and more empty units are on the market, not to mention more new builds that nobody wants. The developers seem to be reasonably successful in getting a buyer in, but the quick flipping to a second owner is slowing down.
For MYR to USD, I still think MYR will go further, there is room for a recession here, but with Trump at the steering wheel, who knows what the USA is capable of, so its a difficult question and my opinion will most likely change throughout the year!