Quote:
Originally Posted by TermMonster
If you think the US will recover, China will be a good investment and the Yuan will give you a nice currency kick as the dollar depreciates!
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The Yuan kind of worries and confuses me at the same time. Because, China has specifically tied their exchange rate to the US Dollar. Doing so gives them an export advantage against us because of the recent sagging Dollar. In fact, the Yuan could even be under-valued because it's tied to the USD.
On the other hand, if they stay the course, and the American economy rebounds, then their currency takes a hit. I suppose, by then though, they could always change the policy to something more beneficial.
A direct currency play on the Yuan is risky to say the least, but investing in US dry shippers isn't a bad indirect play. Even Cramer talks about that fairly regularly.
Quote:
Originally Posted by shultice24
I love Vanguard Emerging Markets ETF (VWO). It is not China-specific (about 18% of assets currently are Chinese), but it's a good, broad play on the continued emergence of China, Brazil, India, etc.
I'm currently wading into it slowly though. Stocks have risen very far, very fast in these countries and could be ripe for a downturn (or not, nobody knows for sure  ).
I also used to have a little Guinness Atkinson Pacific Dividend Fund (GAADX), which focuses on dividend-paying stocks in the Asian region. It's a more direct play than VWO, and may be of interest to someone looking to get into that region.
Unlike snafu up above, I have absolutely no justification to try and pick individual industries over there. Just funds for me... |
This is a great response here.
People are drawn to China because of the potentially huge payoffs, but it does not come without an equally huge amount of risk. So, if you want to make a direct play, you're going to need a pretty solid thesis.
Otherwise, I would recommend to just buy-and-hold related mutual funds or ETFs.