Author Topic: CYB - Yuan ETF  (Read 1785 times)

sswan11

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CYB - Yuan ETF
« on: October 11, 2011, 09:06:54 AM »
http://www.madhedgefundtrader.com/

The Chinese Central bank governor, Zhou Xiaochuan, says he won’t entertain a revaluation for the foreseeable future. The Americans say they need it tomorrow. To me that means about six months. Buy the Yuan ETF, the (CYB). Just think of it as an ETF with an attached lottery ticket. If the Chinese continue to stonewall, you will get the token 3%-4% annual revaluation they are thought to tolerate. Double that with margin, and your yield rises to 6%-10%, not bad in this low yielding world. Since the chance of the Chinese devaluing is nil, that beats the hell out of the zero interest rates you now get with T-bills.


misterstockwell

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Re: CYB - Yuan ETF
« Reply #1 on: October 11, 2011, 10:26:05 AM »
The only problem is that CYB doesn't track the yuan very well at all. 

http://finance.yahoo.com/echarts?s=CNYUSD=X+Interactive#chart5:symbol=cnyusd=x;range=2y;compare=cyb;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

It would be better to just open a yuan denominated account at some place like Everbank