Economy in the next five years, the RMB’s value preservation rate

For example, if a certain amount of money is deposited in the bank, it will depreciate by about 10-20 after 5 years.

Whether it is valuable or not depends on relative terms. If you hold a large amount of U.S. dollars in your hands, and now the RMB has appreciated and the exchange rate against the U.S. dollar has dropped, what should you do? Moreover, prices are soaring now, and there is great potential for inflation! How can money be valuable? The appreciation of the RMB is for the international community. In other words, currencies around the world are depreciating now, and China's depreciation rate is slower, so the world is saying that the RMB is appreciating. In addition, the rise in prices is due to global inflation, and the rise in gold reflects inflation. In addition, gold maintains its value and is a global investment. The economic situation is reflected half a year in advance, so this will form a vicious circle. causing gold prices to continue to rise. Now, in addition to investing in gold or other financial products, you can achieve appreciation. Now major banks have launched gold business, which is very suitable for office workers to operate, and the profit is much higher than that of stocks, and the risks are completely controllable. Now, the most realistic problem is that the appreciation of the RMB has brought little increase in purchasing power, and most of it has been lost in the wave of global inflation and the continued surge in resource prices. From the perspective of international commodities, the current purchasing power of the RMB has declined instead of rising compared to before the exchange rate reform. On the eve of the launch of the "exchange reform" in July 2010, the international crude oil price was about 60 US dollars per barrel, which was equivalent to about 500 yuan at the exchange rate of 8.28:1 at that time. When the renminbi "broke 7", the international oil price rose to 112 US dollars per barrel. Calculated at 6.992:1, it is equivalent to RMB 783; the international gold price is even more depressing. Before the exchange reform, it was US$450/ounce, which was equivalent to RMB 3,700 at that time; the current international gold price is US$934/ounce, which is equivalent to approximately RMB 6,530. In other words, if the RMB appreciates by 15%, the purchasing power of crude oil in the international market has dropped by about 1/3, and the purchasing power of gold has dropped by more than 40%. In the international iron ore and most other raw material markets, the decline in the purchasing power of the RMB is equally alarming. Worrying also includes China’s foreign exchange reserves, which are the world’s largest. In July 2010, China's foreign exchange reserves were approximately US$1.2 trillion. According to the price at that time, it could purchase 12 billion barrels of crude oil or 1.6 billion ounces of gold. At the end of the third quarter of this year, foreign exchange reserves had risen to US$1.65 trillion, but they could only purchase 15 billion barrels of crude oil or 1.77 billion ounces of gold. There is still a certain relationship between price rise and RMB appreciation. The current price rise in China is mainly caused by two parts, one is hot money operation, and the other is the impact of the global greenhouse effect in the past two years. Some agricultural products have been severely affected by natural disasters, including the reduction of global food supply in China, resulting in food prices. Soaring. The appreciation of the RMB plays an indirect role in the process of rising prices. The appreciation of the RMB has caused foreign hot money to flood into China. Coupled with the already rampant currency liquidity problem, inflation has become more serious.

Everyone will face inflation. Financial management is definitely not a matter for the rich. It is a life plan for individuals and families. If you want to keep yourself and your family's financial situation in the best state, start from Now start walking in five steps.

The first step is to clean up assets. Including how many assets you currently have, how many liabilities you have, and what your future income expectations are. How much money you can manage is the most basic premise. Try making two household financial statements yourself, an income and expenditure statement and a balance sheet. The income and expenditure statement consists of three parts: income, expenses and balance.

Tips: For long-term accumulation, you can compare income and expenditure items across years to see which items are higher and which items are lower, and think about the reasons behind them.

The second step is to sort out your financial goals. Financial management is not blind, it must be targeted, such as buying a car or a house within five years, the schooling of children or the amount of assets... At the same time, these goals must be quantified, that is, how much money is needed and how long it is expected to take.

The third step is to clarify your risk appetite. Risk preference is an objective analysis of oneself rather than blindly subjective likes and dislikes.

Don’t make assumptions about risk preferences that don’t take into account any objective circumstances. For example, many people watch the stock market go bullish and put all their money in the stock market without thinking about whether they have a mortgage to repay, plans to have children, and other family responsibilities. When you think about the stability of your income, your risk preference deviates far from what you can bear.

The fourth step is to make strategic asset allocation, and then choose investment types and investment timing. At present, the more popular financial management methods include savings, insurance, treasury bonds, stocks, funds, futures, foreign exchange, real estate, jewelry, stamps, antiques, coins and auction items. No matter what kind of financial management method, it has its own characteristics and irreplaceability. It doesn’t matter which one is good or bad. Risk and return coexist, but it must be high risk and high return. Which investment portfolio to choose must be based on your own actual situation. Decide based on your own risk tolerance.

The fifth step is to track performance. The market is constantly changing, and personal financial conditions and income levels are also constantly changing. It is necessary to frequently evaluate investment performance and make timely adjustments according to changes. Financial management is not about buying and selling, nor is it about restricting financial freedom.

An investment portfolio suitable for ordinary families can be: 40% bank savings, 30% buying bonds, 10% buying insurance, 10% buying stocks, and 10% for other investments. However, no model is an absolute truth. Different people have different financial situations, different financial goals, different family responsibilities, different risk tolerances, goals, and asset situations. Many people understand the principle of not putting eggs in one basket, but how many eggs and how many eggs should be placed in what kind of basket vary from person to person.