bearfund

Jim Rogers' Picks and Pans - Barron's Interview

China's great, but there are few good ways to play it; the regulatory opacity sucks and ETNs expose you to the exact risks you are trying to avoid if you believe China is replacing the US as the great nation of the 21st century. CNY? No thanks. It's high-yield paper issued by MS. That pretty much counteracts the major upside potential. I don't understand Jim's bullishness on it; he's willing to make unsecured loans to the same companies he's shorting.

Indirect exposure is better unless you have big-time resources. If you want to bet on the RMB, just go short Treasuries. A rising exchange rate means the PBOC isn't printing as much to buy dollars and American debt. And with the dollars they do have, they're looking for better yields. This is much safer than any ETN and takes advantage of other macro trends, not just China. Pair the trade with long positions in commodity ETFs, not ETNs, on any corrections.