China: speculating in the Yuan
Albert K. Fung
Wall Street's financial marketers are now making it not only
possible, but also easy for retail investors to speculate on
China's RMB, known as Yuan. Many in these NG's were wonder-
ing how to benefit from the bloated currency of China, which
is controlled by the government. Now, they can play to their
hearts content using an ETF that started to trade today. Be-
ware, however, that it is new and liquidity may be an issue.
Happy speculating ....
Regards,
Albert K. Fung
Casa Tres Palmas, Santa Ynez, California, USA.
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Posted via news://freenews.netfront.net
Complaints to ne...@netfront.net
PaPaPeng
Oy Alfie. There's no point speculating in currency that's already
bloated. Bloated means overvalued and will fall in value like a
punctured balloon any time soon. The only way to win in this
situation is to short sell the yuan. Do you see any of that?
Albert K. Fung
>
> Wall Street's financial marketers are now making it not only
> possible, but also easy for retail investors to speculate on
> China's RMB, known as Yuan. Many in these NG's were wonder-
> ing how to benefit from the bloated currency of China, which
> is controlled by the government. Now, they can play to their
> hearts content using an ETF that started to trade today. Be-
> ware, however, that it is new and liquidity may be an issue.
>
> Happy speculating ....
PaPaPeng:
> Oy Alfie. There's no point speculating in currency that's already
> bloated. Bloated means overvalued and will fall in value like a
> punctured balloon any time soon. The only way to win in this
> situation is to short sell the yuan. Do you see any of that?
Not unlike stocks ....
ETF's can be shorted or longed. Put/Call options can also be
bought or sold. The esteemed netter's talent for stating the
obvious is admirable. Depending on his outlook on the under-
lying RMB, he can take positions either way: long (bullish),
or short (bearish).
For bloated RMB, he may want to consider shorting the ETF.
Should he be more adventuresome, he may want to examine some
ultra-short ETF's and/or buying/selling the underlying call/
put options. Which can provide ginormous leverage on his in-
vestment and amplify his pleasure.
Or, pain .... :)