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What should China buy with its $3.9 trillion reserves?

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Based on the Blackrocks, Fidelitys, and Vanguards of the world, I would estimate the PMs that managed such gigantic portfolios had sub-par performance. It's virtually impossible to beat the market when you are the market, whether it's equities or fixed income. I'm not saying it's impossible for a PM to manage such a large portfolio. I'm saying it's impossible to manage it well, especially now that everyone and his dog is playing in the alternative asset arena. No more outsize performance there.

They manage multiple portfolios with different strategies.
 
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"What should China buy with its $3.9 trillion reserves?"

As somebody pointed out the reserves are not free cash China could move around. Majority of the money are tied and obliged to buy US bonds or other useless papers to maintain the trade flows between the US and China. If China stops to buy US debt or starts to dump dollar assets it will cause damages on both economy, not just US. However, as China and other countries are pushing for non dollar based bilateral trade it will gradually reduce the dominance of US dollar, and maybe collapse US economy in the long run. Who knows?
 
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