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
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.