A Diversified Portfolio Protects You from Currency Devaluation with Sornchai Suneta
When the raid moving up to fifteen percent, I think is good chart for you to lend the money that we will. So I meant all my position to the trader in the market. Oh that time ninety seven at bottom of the very very we'll do very good opportunity to cash Mike both. But suddenly. Thing mineral. Rather than fifteen percent interested hiding up on the week later up on two hundred percent. That because because the vices have coming to your face. So every night on the trading gasping up at the ball and drinking a lot because of big gut. Get lost a lot of money. Luckily, that my position would not that be lead the lion the shot, but value it's still suffering for a little bit of laws. Low fellow risk-takers and welcome to my worst investment ever stories of loss to keep you winning in our community. We know that to win investing. You must take risk but the win big you've got to reduce it. My name is Andrew Stotz from as dots investment research. And I'm here with featured guests sawn CHAI SUNY tie coons oncho, are you ready to rock? Yeah. So let's get into it. I'm going to introduce you to the audience sawn tie has over twenty years of experience in asset management and wealth management industries, and is currently the chief investment officer leading the investment advisory practice at C M commercial Bank for those who aren't in Thailand is one of Thailand's largest banks. In addition. He was appointed as advisor to the government subcommittee on monetary banking, financial institutions and capital markets, and this is a subcommittee of Thailand's legislative assembly in. Edition. He serves as one of CFA society Thailand's board of directors and also a chartered financial planner board member prior to joining Sam commercial banks at vestment invite Serie team. He was chief investment officer at be asset management where he manage as it's over a trillion baht, which is equal to about thirty five billion US dollars. He got his bachelors of finance degree from APEC university in Bangkok and his masters in finance from the university of London sawn shy. Take a minute fill in any tidbits about your life. My life is always with stake here because gets a miniature in several graduates actually have the trading for awhile, I use foreign exchange. Lindsey trae bibs, and then it turned myself to become the fun miniture the lions finally JIRA. So we meet you checking rates or a bed that return out here were or were the period of time. You have seen the market will let your fees. So we have to deal with it all the way. So in order to also wind we have to be wearing this have been and also you have to be stay in line. It what you've been being. Want to tell everyone fantastic. I love that you know, from long term career in managing money. The point is you must take risk. You are the alternate risk manager. And the other thing that I liked what he said was the idea that you want to try to stick with your belief and have some discipline about your process. Okay. Well, that's that's a great intro. And as the listeners can hear which is talking about a very experienced person in the financial industry, and as we also know even experienced people make mistakes like myself and many of our guests. So now, it's time to share your worst investment ever since no one goes into their worst investment thinking, it will be tell us a bit about the circumstances leading up to it. And then tell us your story actually, it's happened with a long long time ago during the financial. Since in issue that time it's back to nine eighteen ninety seven at wasn't trade deals in the Bank in the effect spades. And that timely was busy in home. And you know, what offended many ountry seemingly like emerging market nowadays. Some of them fade seeing do all deficits one of that. Is that the deficits sick leave the borough a lot of money from option? That's the white. The have been ding in Highland doing the night sake and to ninety eight befall everything go bouts. I want him dead doing dot com. Once in Hong fall, and there was as a trade there. So what we have been done if that we trading events. Currency or they're being. The first stage. It's very very true. And a lot of money. Alliot would we type something? Unpredictable. It gets five baht to GM. I get that and central Bank to into win. And you know, the people around the market who shot the Bob's after funding way on interested through the swamp. My get at a thought that not that bad. I mean, the interest that have been hiding up five percents to eight percent nine percent. Why won't was shoot higher than that? It's impossible. So when the raid moving up until fifteen percent, I think is good job for you to lend the money that we will. So I meant all my position to the trader in the market on that time ninety seven at bottom. The very very do. Good opportunity to just up like oh bit. But son. The only thing mineral rather than fifteen percent interested hiding up on the weekly the up on two hundred percent that because of the guys is coming to your face. So every night on the trading gasping up at the ball and drinking a lot because of big get lost a lot of money. Luckily that my position not that be only Celaya be short. But I still am in suffering for a little bit of laws that make me thinking about Liz of men up onto today, if you laying around with emerging market or vision, don't be gorge, Sean of cleansing there, you have to be wary capital. But everything that happened when he's though now a day linking green for investment, you have to be diversifying thinking about the full Titian that was in maybe going through the woods skits, the LASSO. Yup. So you have to do some state case where you're postseason L'Ecole alley. The ones I watched. Learn the beginning of Mike Carey. Yeah. Well, that also shows how a guy like you rises up to the position of CIO is that you've been through these things, and you know, how to look at loss and know that you mentioned, you know, one of the things that you mentioned was about the worst case and thinking about the worst case. And I think when someone hasn't been through that shock in that pain of the market, then they don't always they're not always able to see what truly the worst case yet. That's why I think that's one of the things. I definitely take away is the idea of the benefit of having experience in the market is that you really know what the worst case could really be. Now, it's interesting that you mentioned about emerging markets because over the over the last and currency because last some of the last interviews, I've had we've been talking about the idea that whenever you invest, you know, let's say that you're investing in stocks in another country, you're actually investing in two things anytime you're investing in an ask. That you're investing in the currency to get into that asset, and then the underlying asset, and I think many people don't always think about that. And so we have to think about the currency and the other thing about what you said, it's interesting is that don't go short emerging-market currencies. And I think, you know, the risk is just so high in fact, one of the guys who I recently talked to we were talking is in Turkey right now. And so he's dealing with looking at Turkey from the inside and looking at the currency and strategies air, and then I just interviewed a guy who's been investing in Turkey just recently when you think about investing in currencies. It's probably better to say I'm gonna ride the slow appreciation of currency rather than the fast try to get in. And as we say in sometimes sometimes you're catching a falling knife. A you know, one thing Andrew when the new trade dot come to debunk it then on being much twice as savvy. Normally when dick Sean it go the shop at this awkward. Your shot at the spot rates who day after you have to get the funding to Menton your funding before your make system meant that would be very worse. Because today off you have to make it set them into that. He wishing see if we can find in the ovation on February was so what apple been seen the low temperature that normally we get the funding before the show and the funding would be rarely long, but how they will not recommending to do during the lights because the the caught up on being moved skied through the luck at at at sea right before. So one of the things I think you're mentioning is the idea that even if your call is right, sometimes there's not the quickey or availability of the funding that you need to close position or to alter your. Position. So that's another risk in emerging market currencies. Okay. I have one question for you before we move onto the final question in that is. You know, it's interesting the number of people that I hear that tell me that they're they're learning how to trade currencies. And I know that there's a lot of like courses in people out there. Trying to teach how to do some trading strategy on currencies. People ask me about I say, oh, that's way beyond my capability. And when you look at the forces of central governments, huge banks, it's something that just show difficult to do. But I'm just curious if a friend of yours counts that ham learning a new trading in currency strategy. What would you say strategy or the trading? The first thing you have to think about when you pray currency. You're gonna play against the biggest is that currency. Definitely the central Bank way. To be very canned food. My suggestion. You've that eve you're really need to cap the whole sation in currency back to Bates abandons thinking that it should have enough recruited thing that Secondly, you have to stay. There was a file know what will be bit only one or two zero emcee, but you have to do as through currency bed. A give you some example at you mentioned about when you get into the emerging market basket let let's say each you merging market and creepy for this year. So you have to go with a five more than trees than to say more than what find fifteen-country dot also come together with the X orcher on transit rates or you have to find your will to Beijing sometime in your head to the inner a derivative Marquette sometime you have to hitch to the coronation hitch. That kind of thing at least you did something on your shame. We were hell then with the that won't let show. Okay. I'm gonna take that as your actionable idea because to recommend to the listeners in that is the concept. It's easy. It's easy to think about the concept of diversification when it comes to stocks because we have so many stocks that we could buy you can build a portfolio of ten stocks. No problem yet. But it it's harder to think about the concept of diversification. When it comes to currencies a lot of people get convinced that they've got one currency. They really know the direction of it. So I'm gonna take away from that that whether whether it's stocks bonds other assets or currencies you still need to build a diversified portfolio. So that you don't end up over exposing yourself to anyone currency. Yeah. That's the best strategy to do. You know what? A have been pausing the vices three times in ninety seven financial crisis in the issue. Secondly, have booked is US and bud Lee its European crisis. And every time I b in so. And. Can get out in the champ because the rage at stay thinking hall what to have been none. Trendy something years ago. Yes. And I think that's a really good point that survival is sometimes the people that survive often win. And they lead the best thing for the chain thing for the rest there for the funding engines the thing about what you have to sell wine firts reform the thinking about getting more profit during the this. And when you said that you've lived through three I thought you were going to say four, and that is the one we're about to go into. I mean. On me. Economy than name always. And that's a discussion for another day. So at that point, I'm going to wrap it up by saying there, you have it listeners another story of loss to keep you winning to find more stories like this previous episodes and resources to help you reduce your risk. Visit my worst investment ever dot com. As we wrap up on Shai. Thank you again for coming on the show. I know it's painful talking about are losers. But our listeners are learning to win as a result. Do you have any parting words for the audience? Well, you have to be. So y before you're thinking about making it believe me, this is the thing you have to thinking about when you walk in the market that Bishop willow tune flea market now. Let fantastic I love that. It reminds me of that song is Donna summer's. I will survive. Oh, yes. I. So let's let's wrap this up. And that's another great story to help us create grow in protect our wealth, fellow risk-takers. Remember, the key is to survive, and I'll see you on the upside.