Re: Jim Rogers Buying the Yuan
these are both positions we've talked a ton about in BFI.
long yen, long yuan. he is exaggerating a lot since if the yuan flies up the chinese communist party will crap themselves lol.
but seriously, they have to slow the economy slightly and have acknowledged that by raising rates (in a small way). they are still accumulating huge reserves though so they need to raise rates even further.
the good news for china is that unit labor costs are STILL falling despite 15% increases in wages since productivity is increasing even faster.
they can keep the yuan where it is for a while, but evenutally they need to raise it (and it will raise itself if it is oversold by the chinese central bank for too long).
this is one fo those spots where the market is just not efficient b/c you have such a huge player out to peg a currency without regard for profit. long the yuan is definitely a great trade...but i don't know exactly how to execute it since you can't own chinese currency [img]/images/graemlins/frown.gif[/img]
i'll search around a bit though.
Barron
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