In a Down Market, the Dong Stays Up
The economy is in turmoil, governments are in unrest, our banks are insolvent. In these troubling times, where can an investor turn for strength, stability, and girth of returns? The Dong. If you had invested in the Dong (the currency of Vietnam) one year ago, your money would have grown over 10% during one of the most tumultuous economic periods in history. Compare that to the S&P 500’s decline of 38% over the same period, and it’s easy to see why some people just can’t get enough of the Dong. While the US and other world economies have deflated, performing flaccidly in the wake of a world-wide recession, the Dong has remained strong, engorging investors with profits week after week, night after night, and sometimes in the morning before the opening bell. During the trading day, in after-hours markets, over the counter, in pink sheets, it doesn’t matter; in trading sessions circumscribed or uncircumscribed, the Dong has been rock-solid.
Flash Player 9 or higher is required to view the chart Click here to download Flash Player nowOf course, the Dong has had its nay-sayers; analysts who said it couldn’t stay up, that it might not always perform, that it wouldn’t keep thrusting ahead. Yes, the short sellers would have had you believe that the Dong was bound for an embarrassing collapse. But in the end, time has demonstrated that it’s simply not satisfying to go short on the Dong.
The Dong may not be for everyone - the volatile ups and downs might wear out a timid investor - but even those with a low risk tolerance stand to make gains if they play it safe. For example, taking a spread position on the Dong can provide a hedge against premature or erratic movements. Or, if you’re unfamiliar with the history of the Dong and want to avoid direct exposure, a targeted or diversified currency ETF can provide a protective barrier to reduce your risk.
Granted, the Dong can’t stay up forever. Past performance suggests a forthcoming climactic spike, coupled with a surge in liquidity, and an ultimate shrinking of returns. As with any investment, when it comes to the Dong, the key is to know when to pull out.
Disclosures: Long Dong
This advice is VITAL for anyone who feels like their spouse is not fully satisfied with their financial acumen. In a survey of 1000 married women, 82% said they secretly wished their husbands had more Dong in their portfolio.
Interesteing. I did not knew that Vietnamian currency is so high increasing
Haha, funny stuff.
Good article, but the graph does not make sense with what the article states. The article states that the “Dong has remained strong”, but the graph states otherwise. According to the graph, which is in Dongs per Dollar, more Dongs are needed for every Dollar since it is an upward trending graph. The fact that more Dongs are needed for every Dollar clearly suggests that the Dong is losing value, not remaining strong as the article argues.
Come on now, Chuck. Long Dong?
……. Ohhhhhhhh, he’s talking about things that a penis might also do.
Amen! Did you know that Vietnam’s chief exports are ginseng root, gingko biloba and saw palmetto? That means the growth of the Dong is all natural!
That 500 dong note is worth 2.8 cents. Vietnam did the whole hyperinflation thing back in the 80s.
As with so many other things in life, so too with the Dong
Timing is everything!
The Dong has a long way to go before its upward thrust wilts
That’s why it’s called ‘the Long Dong’
I’ve had a long Dong position for some time now
As a result, I’ve made out quite well
The USD strengthened vs the VND over the last 12 months. A higher USD VND cross rate means the VND is worth less per USD. Check your facts better before you get carried away next time.
Actually the Dong was falling during the last 12 months against the U.S. dollar. The chart that you are displaying is USD/VND. If one would have invested in Dong a year ago he’d lose more than 10%.
As many of you have pointed out, the Dong as a currency is limpening against the dollar. The article is discussing the currency pair USD/VND, which is colloquially referred to as the Dong.
Also, if your primary concern is the accuracy of the pair described, you may be missing the point somewhat…