Buy assets, invest in poor countries

Wu Xiaobo, a famous financial writer, made a conclusion when he predicted the annual investment trend at the beginning of 2018, which has now become the most powerful theoretical support for investing in Cambodian real estate.

What is a good asset?

What is the biggest bubble in the world today? RMB, China's total economic output is only a little more than half that of the United States, but the total amount of RMB issuance exceeds that of the United States dollar. Of course, the proper bubble is a good thing. What is the problem after the bubble? We buy bubbles to buy the best things in other people's homes, that is, to buy assets and invest in poor countries.

What are you going to buy?

Over the 15 years from 2002 to 2017, China's foreign investment has increased by nearly 20 times (a little more than 18 times). But why did there appear a steep decline between 2016 and 2017? That's because in 2017, a small number of people made mistakes in the Japanese economic bubble thirty years ago, to buy beaches, buy hotels, buy movie theaters, and buy football clubs. These are non-standard assets, all of them are bubbles.

If we want to buy, we need to buy other people's robotics companies, pharmaceutical companies, and the best and most developed assets of others.

What is a poor country?

Cambodia is impoverished? Poor! The country's per capita annual GDP is only about $1,200, or less than the average middle class's consumption level in the Double Eleventh. But what we can't see is that the country's GDP growth rate of justice is about 7% a year, which is very similar to that of China 30 years ago.

When China was still "poor", what kind of life did those who bought houses lead today? At the beginning, 2,000 yuan per square metre of the house, now up to 50 million sets.

Poverty, sometimes an advantage, means that it is a developing country, full of opportunities. And Cambodia is the country.

Why is Cambodia attracting great attention?

In fact, it has not been long for Chinese people to invest abroad on a large scale. Earlier, they focused a lot of attention on the markets of the United States, Australia, Canada, Europe and the United Kingdom. However, in recent years, more and more Chinese investors with an international perspective who want to make overseas asset allocation have chosen the Southeast Asian market. Why? The important reason is that we can see the advantages and disadvantages of European and American markets and Southeast Asian markets more rationally and objectively.

Relatively speaking, in Southeast Asia, the shortcomings of European and American countries are often the strengths of Southeast Asian countries.

For example, the European and American market is relatively mature and relatively sound social system and real estate system, its future growth attributes may be low; in the past two years, the whole strategy of China and the whole region has had a profound impact in Southeast Asia, and the growth of its entire economy in the future will be relatively high. Under such circumstances, the real estate appreciation expectation is correspondingly high.

Cambodia, by virtue of its "poor" starting point, opens up unlimited possibilities for future development.

First, the stability of its country provides a strong support for investment. The stability of the country benefits mainly from three aspects:

（1）Constitutional monarchy, which combines the monarchy of the Middle Ages and the democratic system of capitalist system, is characterized by a relatively stable and conservative system。

（2）Buddhism founded the country. The people who believe in Buddhism are relatively peaceful. 90% of the people in Cambodia are very devout Buddhists.

（3）Political stability and friendship with China. Since the 1980s, Cambodia has only one national leader, Prime Minister Hun Sen. Hun Sen was re-elected Prime Minister in this year's general election.

This "new authoritarianism", when the economy is in the early stage of development, can maximize the effective concentration of social resources in the hands of those who can maximize the effectiveness of social development, or organizations, groups, so as to provide considerable strength for future social development.

Moreover, Cambodia is one of the few countries in Southeast Asia that have very friendly relations with China. This kind of friendship not only stays at the political and economic level, but also goes deep into the people. The friendly relations with China have reached cultural recognition. This kind of friendship is very stable.

Secondly, the high added value of Cambodian real estate is reflected in the inherent nature of its dollar assets and the fourth global rate of return on rent.

（1）US dollar asset allocation

Cambodia is the third largest US dollar asset country in the world, and its daily and bulk consumption is settled in US dollars. Apart from the United States, there are only a handful of places around the world where the dollar can be used, especially in Asian countries.

Under the wave of global economic instability, as the world's largest currency, it is a real hard currency for investment. Any move will have a "butterfly effect" on the global economy. Therefore, many people will hold the dollar as a way to hedge other risks.

Cambodia's unique US dollar asset attributes make every Cambodian real estate have the investment preference of hard currency and risk aversion.

（2） Global fourth rate of return on rent.

Rent, as an important means to obtain the return of real estate investment, has always been the focus of investors. According to the latest data, Phnom Penh, the capital of Cambodia, ranks fourth in the world and first in Southeast Asia with an average rent return of 6.92%, second only to Dallas, Osaka and Nagoya in the United States.

Buy assets, invest in poor countries ,are you ready to start your dollar assets?