WisdomTree Dreyfus Chinese Yuan (AMEX:CYB)

The Chinese seem to be seriously considering the appreciation of the yuan relative to other currencies. Many have believed that since the economic turmoil that took place in 2008, that this would be only a matter of time. I recommend hopping on this bandwagon because the sky is the limit for this one.

Of course I also recommend going to any airport and just buying yuans. I know the cut that the airports take for themselves is ridiculous but hey, GET YOUR HANDS ON YUANS!!!!

if there is any truth to the matter that the US dollar's reserve status is under threat, yuan might be the next baton holder.

I am picking something stable here thinking it will outperform, but not necessarily jump in value.

It's got to float up at some point. It just doesn't make sense... How can the dollar, the trademark of a country with a 90% debt to GDP ratio, outperform the renminbi, the trademark of a country with zero debt and probably a 100% asset to GDP ratio (or more!)... Once the CCP let's loose the yuan, the market will determine its true value. I know, i know, how fast? Who knows? it could be decades before it happens (this is because the CCP will need to manage this transition to minimize civil unrest in their own economy), but once it does, CNY will likely become the world's de facto reserve currency. I mean, how could it not? Is there any other country in the world that has as many assets and as little debt? NO! It's like investing in a company like Google or Apple, except if they were MONOPOLIES! But... how long? Could be tomorrow... could be in 2030... can you wait? On the plus side, a managed currency has limited downside risk, so while you wait maybe you use it as a hedge on your portfolio with a built-in non-expirable call option!

One of the direct causes of the current global economic crisis is the currency exchange rate imbalance. Loss of jobs in the U.S , specifically manufacturing , led to meltdown of the subprime mortgage market and eventually meltdown of the U.S consumer (I would equate the US consumer to the US economy since it represents by far a major variable in the GDP equation). Remember that US is one of the most productive countries in terms of GDP/capita, and it prospered when enterprises produced and exported it’s good. The systematic problem is the trade imbalance between China and U.S. During the next WTO meeting, officials will be solving how to force China to let go of its pegged currency and let the market determine the value of the yuan. Simply by letting the Chinese currency appreciate, US will once again become the exporter, the trade balance would be restored and US will come out of the current economic recession. China of course, does not want to follow US initiative, because it prospered due to its’ undervalued currency, and growing exports. Indirectly, however, it’s complying with US and WTO demands. It is purchasing GOLD in immense volumes as one of the ways to appreciate its’ currency. Be sure to look at the yuan exchange rates in the future. Yuan will appreciate, US will become an exporter once again, US and the whole world will come out of the recession.