I have a friend who is offering me to invest in Venezuela. Their “Bolivar” is stuck and set by the government, and the black market is hungry for dollars. He suggested we get to buy now that Chavez was re-elected, because so many people are selling to get out of there. There are things that are literally being sold for peanuts! But I am very skeptical. I have the feeling that Chavez is another Castro. What would you do? The initial investment is around 10k, but the return could be 15k in a matter of months. That’s what he is explaining. would you take a risk like that?
As with everything else in life if in doubt don’t do it.
The only other advise i can offer you is if you really want to do it then find a specialist on the subject and research it properly before you even think abouot investing a penny. If you are being pushed then walk away.
Last thing you want my friend is to rush in to find you’ve lost your money.
I’d rather keep my money in my trading account where i know its safe and use it for forex trading.
I agree with aftab, however, there’s still something you can do.
considering the fact you know your way around technical analysis, if I were you, I’d wait for reversal signs in that market and then decide.
this way, if the market doesn’t go up, you wouldn’t lose at all, if there are false signs of reversal you’d lose, but less than your german freind, and if the market goes up, you’d win almost as much as he did.
whatever you decide - goodluck, and let us know .
If you’re already unsure, that should automatically be a red flag. Unless you’re an expert in Venezuela markets or know someone, it’s probably best to stay out. That expert would have to know something that the hedge funds don’t already know because they’re looking at “emerging markets” for possible investment opportunities. If the bolivar is selling for peanuts, something has them spooked and there’s probably a good reason why the currency is weak. My initial guess is that the geopolitical risks are too great. But I’m no expert.