A safe, smart bet on China

This fund could see immediate gains once the Chinese government adjusts its currency rate against the US dollar.

By Wall Street Media on MSN Money Jan 7, 2010 2:26PM
Written by Douglas Estadt
 
My brilliant friend Jim Gobetz manages $1.7 billion for the Wallingford Trust. He's highly respected for finding flaws in two prominent leveraged exchange-traded funds and leading many people to big profits in shorting both.
 
He recently made news again by being two weeks ahead of CNBC in his call on the Dubai bailout. He joins me on video today to discuss what we feel is a low-risk, longer-term way to profitably invest in China. (Click the Read More link below to find the video.)
 
Jim explains that in July 2008 China repegged its currency, the yuan, to the U.S. dollar. Since then, the United States, Europe and other countries have been pressing China to unpeg the yuan and let it rise. That spells investment opportunity, and Jim has found one.
He researched an extensive field of investments intended to profit when this Chinese currency inflating does eventually occur.
 
He decided that the innovators at WisdomTree had developed a relatively safe way to invest in this probability with their WisdomTree Dreyfus Chinese Yuan ETF (CYB).  
 
Jim feels the team at WisdomTree has created a great opportunity for investors to enter a relatively safe way to play the eventual, and more or less inevitable, adjusting by the Chinese government of the exchange rate of their yuan versus the U.S. dollar and that when this does occur that their CYB will see an immediate sizable gain leading to great profits for investors holding this ETF.
 
I am convinced China is going to be the leading place for investors to make huge gains this year and for many years to come. I have already made quite a lot of profits investing in China, and I generally look for smaller undiscovered stocks while (because of the large amount of money he manages) Jim is forced to look for bigger investment vehicles. 

After carefully evaluating myriad ways to play this particular thesis, Jim felt the squad at WisdomTree had again innovated and offered the most solid vehicle while still providing the potential for an eventual big winner. He invested a sizable amount of the trust's money in it.
 
I have known Jim to always be a brilliant leading-edge thinker who is ahead of everyone else. That's why I am following him into CYB with my own money and that of the people following my model on Covestor Investment Management.
Tags: investing strategyinvestmentsWallStreetMedia
< Back to Top Stocks
User Picture
Write a comment...
11Comments
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

MORE ON MSN MONEY

DATA PROVIDERS

Copyright © 2013 Microsoft. All rights reserved.

Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.

Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.

Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

127
127 rated 1		269
269 rated 2		462
462 rated 3		588
588 rated 4		658
658 rated 5		615
615 rated 6		645
645 rated 7		431
431 rated 8		263
263 rated 9		138
138 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
COPConocoPhillips10
NWSNews Ord Shs Class B10
YHOOYahoo! Inc10
TJXTJX Companies Inc9
AMXAmerica Movil ADR Rep 20 Ord Shs Series L9
More

LATEST POSTS

Scary story: the 2013 market looks like 1987

All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.

FIDELITY VIEWPOINTS

Fidelity Brokerage Services, Member NYSE, SIPC. (c) 2011 FMR LLC. All rights reserved

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.