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- On China and What the World Won’t See During the Olympics [view article]
- China's Impending Financial Crisis [view article]
- Good Time to Buy Chinese Currency: Follow the 'Hot Money' [view article]
- Finding Your Comfort Zone with Currency Investing [view article]
- Six Ways to Trade Foreign Currencies [view article]
- Multinational Corporations Step Up the Search for the Next China [view article]
- Wednesday Currency Roundup [view article]
- Jim Rogers' Picks and Pans - Barron's Interview [view article]
- New Currency ETFs - Give Them Some Time [view article]
- How Bad Is the Dollar's Fall? [view article]
- Currency ETFs and ETNs [view article]
- Pause For Concern On Chinese Currency ETN [view article]
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- On China and What the World Won’t See During the Olympics
- China's Impending Financial Crisis
- Good Time to Buy Chinese Currency: Follow the 'Hot Money'
- Finding Your Comfort Zone with Currency Investing
- Multinational Corporations Step Up the Search for the Next China
- Wednesday Currency Roundup
- Six Ways to Trade Foreign Currencies
- As Traders Prepare for the Long Weekend, Dollar Goes Soft
- New Currency ETFs - Give Them Some Time
- Still Waiting For Those Currency ETNs
- Full List of Articles »
Finding Your Comfort Zone with Currency Investing [view article]
Ray: Is there any good, reliable, non-biased research available (at a reasonable cost) for currency EFT's. I'm a novice and have been unsuccessful in my limited amout of trading experience, but would like to learn.Les Reply
Finding Your Comfort Zone with Currency Investing [view article]
Thanks for this timely and comprehensive report! ReplyFinding Your Comfort Zone with Currency Investing [view article]
I haven't been following CNY, since I detest most ETNs, and your report reaffirms my view on this instrument. I believe CYN is one of the ETNs that doesn't pay dividends, so the interest income, if any (and the Chinese Yuan is the last place I would go to earn interest) you will see only to the extent their forward contracts include any such accumulation. Apparently they are not. The reason for this, I believe, is that China pays less than 1% on their foreign deposits, so that precludes leaving any money there. But, even worse,the yuan is mostly traded through forward contracts which the providers "hope" will include some interest earnings. But, you can't prove that by me--especially with most ETNs.Also, even Wisdom Tree, whose yuan fund I like more than Van Eck's, only pays dividends on an annual basis--if I recall this correctly. China is not a good place to play the carry trade.
I thank you for your post. Our readers need to know how these differences will affect them and their investments.
Best wishes,
Ray Reply
Finding Your Comfort Zone with Currency Investing [view article]
Ray,I bought CNY on 4/17 @40.11 and it is now 39.78 RatesFX yuan value for 4/17 was 7.18812 and on 7/04 was 6.86425 The yuan has appreciated 4.51% while the ETN has depreciated 0.82% Very poor correlation between cash and ETN Reply
Six Ways to Trade Foreign Currencies [view article]
CNY ive held since initial offering and its basically flat while my everbank renembi account so far increases about 1% a month .Wish I could explain or better wish Van Eck could. Market nerves about backer Morgan Stanley ? Reply
Finding Your Comfort Zone with Currency Investing [view article]
For ETFs the providers list their assets under management on a daily basis. For ETNs they list the indicative value, which is the last price per share times the number of shares outstanding.Best wishes,
Ray Reply
Finding Your Comfort Zone with Currency Investing [view article]
I'm curious as to how you got the asset amounts for the tables above. Since these are ETFs, can one take the current Market Cap as total assets? ReplySix Ways to Trade Foreign Currencies [view article]
I'm an ETF newbie, but I expected that ETF would report income/gains on 1099's, not K-1's. Can people with more experience comment on which they are getting? Is there a difference between ETF's and ETN's?--Dave
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Investments
Multinational Corporations Step Up the Search for the Next China [view article]
From Vilane:I do not agree with you entirely with regards to Africa as as location only for resources. Africa is well positioned to be the manufacturing hub because the resources are within proximity, the cost of labour is still low and will be lower than Mainland China soon, as the cost of doing business there goes up. For any respectable brand, you are better of in a location that respects international laws with regards to human rights, labour conditions etc, whilst balancing the need for companies to be competitive.
Take small unknown countries like Swaziland, they have hosted MNC like Coca Cola Concentrate plant, exporting to almost half the world competitively. Recently the Government there unvailed one of the largest spinning, dyeing and weaving plants in Sub-Saharan Africa, operated by Tex Ray Limited. They now employ 6,000 people and export to the region and the US duty free. This are just some of the success cases in Africa. Mercedes Benz now assembles the C-class in South Africa. Africa needs these investments to address poverty and high unmeployment, mindful of the environment and scenic beauty this environment is endowed with.
On Jun 23 03:36 AM vitaminc wrote:
> Sorry to burst your little bubble but the big multinationals in EMS
> and textile manufacturing are already in Cambodia, which was under
> heavy Chinese influence like Vietnam.
>
> They could have gone to Bangladesh but the lack of Chinese ancestry
> in those countries make it an hard place to penetrate. Latin America
> or Africa are more for the resources than manufacturing. Reply
Multinational Corporations Step Up the Search for the Next China [view article]
Sorry to burst your little bubble but the big multinationals in EMS and textile manufacturing are already in Cambodia, which was under heavy Chinese influence like Vietnam.They could have gone to Bangladesh but the lack of Chinese ancestry in those countries make it an hard place to penetrate. Latin America or Africa are more for the resources than manufacturing. Reply
Multinational Corporations Step Up the Search for the Next China [view article]
Intersting article in a general way, however, the evaluation of expansion sites for MNC foreign investment is considerably more complex then the author would suggest. I agree, however, it is reasonably easy to determine that Vitenam has been attracting much attention from foreign investors. Vietnam has had some notable wins in attracting technology based, foreign investment which is a trend I expect to see continue. One of the more notable is the Japanese company, Nidec. Nidec has invested in new factories in Saigon Hi-Tech Park (Nidec Tosok Vietnam) to build 8m fan motors per month for example. Nidec embarked on new expansion plans in 2006 that have brought their cumulative investment in Viet Nam to close to $1 billion. They have also expanded into building fluid dynamic bearing disk drive motors, the first of it's type in Viet Nam. In late 2006 Intel announced it would raise its investment in Vietnam to $1B for expansion of its test & assembly capability in the Hanoi area. Production is expected to start in 2009, and it will be the largest facility of it's type in Intel's history.The patterns of FIT in Vietnam have been well established for the past several years, and will likley continue, at least near term. As I write this, Prime Minister Nguyen Tan Dung is traveling in the United States with senior memebrs of his country's trade delegation and Deputy Prime Minister and Minister of Foreign Affairs Pham Gia Khiem. The US and Vitenam have already signed economic agreements of note, including free trade, garment and textile, and aviation agreements. Most notable, perhaps, is that on 9 December 2006, the US Congress adopted the permanent normal trade relations status for Vietnam, and on 21 June 2007 the two countries signed Trade and Investment Framework Agreement (TIFA). There has been bilateral cooperation in scientific, technological, cultural, educational, medical and labor sectors, with many deals signed, including a joint communiqué on medical cooperation, and agreements on sports, labor, and education.
One attraction to foreign investors and diplomats alike has been Vietnam's history of continuity and centralized decision making. Unlike in China where provencial governments and civil leaders often change the rules as they go, Vietnam boasts a strong, centralized, federal policy making process. Stability in the regulations is a key point to investors. Employment has been stable, the largely Buddhist influenced population treasuring education, peace, and progress.
Still, like all opportunities, there are some risks to be weighed when contemplating a Vietnam linked investment. Property values there have more then tripled in some cases giving rise to questions among some investors about a possible bubble building. Saavy local investors have been plowing money into the property market, with a favorite tilt towards the sq. miles of condomenium space being built along many of Vietnam's more attractive shore lines. Many of these units have been flipped for a doubling or tripling of original investment with no end in sight of the investors flocking there from Hong Kong, China, Singapore and elsewhere.
However, Vietnam's step into the global economy has been a two edged sword. Inflation, like everywhere else, has reared it's ugly head. CPI has grown by 15%+, so far this year, though it hasn't prompted demonstrations or strikes as it has in other countries, perhaps a testement to the population's steady resolve and faith in their government. Hand in hand with the rising consumer prices is Vietnam's continuance as a net importer with a growing trade deficit which rose to $14B+ in May, compared to $12B in all of 2007, pressuring the Dong which now is at 18,500 per dollar on the blackmarket versus the official rate at 16,000 per dollar. Local investors have shied away from the bourse, driving it down from last year's regional star to this year's worst performing, and are likely among those driving the price of a gold, a revered holding among traditional Vietnamese people.
Tight bank liquidity, investor flight to gold, rising CPI, rising trade deficits, non-performing loans amidst the hangover's from last year's mania -- sound familiar? All investors should proceed with much caution IMHO.
Vietnam's entry into the WTO last year makes them fair game for the IMF, which is urging the government to ease off the throttle and slow their growth before inflation runs away with the prize. Concern's have driven the local stock markets down and
Vietnam's GDP grew 8.5% in 2007. The economy, on the whole, grew 7.4% in Q1,08. Notably, in today's commodity driven investment scenario, Vietnam is expected to export 8m tons of rice while other nation's struggle to meet domestic demand. FIT is running at a pace that is 2.5 times last year's $15.3B so far.
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Multinational Corporations Step Up the Search for the Next China [view article]
mmparsley so just because you have been there and got a long of bang for your buck you dont want these countries to get developed. How nice... ReplyMultinational Corporations Step Up the Search for the Next China [view article]
This blog is getting dumber and dumber by the day. The next Chinas over the long haul are South America and Africa. In fact, the Chinese are already in Africa. Look it up. ReplyMultinational Corporations Step Up the Search for the Next China [view article]
SHIT. Multinationals. Keep your grubby hands off these pristine countries.Have you been to these countries? I have. Do you know what you'll be destroying? I certainly do.
This is one of the last great places on earth. Please. Hands off.
Reply
Multinational Corporations Step Up the Search for the Next China [view article]
Then it will be Laos, Borneo, and Brunei. Reply