Some short ideas include the Chinese yuan and the US bond market.
1) Chinese Yuan - Rickards has explained the rationale for a big yuan devaluation, and says there are numerous hedge fund gurus like Kyle Bass already positioned on the short side.
2) US Bonds
- With US interest rates likely to rise, the US bond market should continue to sell off over time. It's been a 35 year bull market for the bond market, and that historic run may have ended. But as Rickards points out, as the new Fed governors are put in place (5 of the 7 Fed governors over the next 16 months), there may be a more dovish tone at the Fed, which would mean a weaker dollar and a rebound in the bond market.
So the better short is probably the Chinese yuan. Rickards says it's virtually inevitable that the Chinese will have to devalue. At the current rate of $50-100 bil per month to continue propping up the yuan, China will have exhausted the remaining 0.9 trillion available to prop up the yuan by the end of 2017. He says there's no way the Chinese will do that in a vain attempt, and their only viable solution is a large yuan devaluation. Rickards says it will likely come in response to Trump's trade/tariff measures against China.
