Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
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China’s Devaluation And Your Portfolio: A Cheat Sheet
FYI: China’s currency devaluation is roiling global markets for the second day in a row. Strategas Research Partners put together a handy cheat sheet for evaluating which assets in your portfolio are likely to register gains or losses as long as China stays in the news. It even includes a cheeky line about the U.S. Presidential election. Regards, Ted http://blogs.barrons.com/focusonfunds/2015/08/12/chinas-devaluation-and-your-portfolio-a-cheat-sheet/tab/print/
With one exception, I was holding most of these in my mind. Hadn't considered the effects on the Long Japan trade; this puts at least a damper on that. As for the leveraged EM traders, well.... we know what they can do with their "lever" (high, and hard). unless, of course, it would lead to the Asian Contagion returning from the grave, in which case... hush my mouth!
I would disagree that this will be a uniformly positive for developed world sovereign debt. I think China (and Japan) do much more trade with Europe than with us. Consequently, this will not be good for trade balances for European nations that do heavy business there. Right at a time when the economies of these nations appeared to be getting some traction going to start growing again. If so, I can't see this improving their own sovereign debt stories (but this could help keep our sovereign debt story artificially "levitated"? oh, joy).
Comments
With one exception, I was holding most of these in my mind. Hadn't considered the effects on the Long Japan trade; this puts at least a damper on that. As for the leveraged EM traders, well.... we know what they can do with their "lever" (high, and hard).
I would disagree that this will be a uniformly positive for developed world sovereign debt. I think China (and Japan) do much more trade with Europe than with us. Consequently, this will not be good for trade balances for European nations that do heavy business there. Right at a time when the economies of these nations appeared to be getting some traction going to start growing again. If so, I can't see this improving their own sovereign debt stories (but this could help keep our sovereign debt story artificially "levitated"? oh, joy).