Here is an excerpt from an article I was reading. Same old, same old until I read one paragraph. Now that we have more than a foot in the door with the China market I realized the potential future impact that could happen, I highlighted it:
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CHINANO RESPONSES
How to Profit from the Yuan’s “Big League” Debut
By KEITH FITZ-GERALD, Chief Investment Strategist, Money Map Report • @kfgtotalwealth • October 5
Here's Your Yuan Profit Play
The simplest way to play along is with a fund like the WisdomTree Chinese Yuan Strategy Fund (NYSE Arca: CYB), which provides direct exposure to the yuan itself.
A slightly less direct way to get on board but one that will prove every bit as profitable and then some is a choice like the PowerShares Chinese Yuan Dim Sum Bond Portfolio Fund (NYSE Arca: DSUM). This fund invests at least 80% of its assets in yuan-denominated bonds that are settled outside mainland China, generally through Hong Kong.
And, finally, consider companies like Starbucks Corp. (Nasdaq: SBUX), Apple Inc. (Nasdaq: AAPL), and McDonald's Corp. (NYSE: MCD), all of which have a huge vested interest in China's growth.
The play here is not just performance, which will obviously accelerate as 660 million Chinese join the middle class and propel the country still higher, faster, and farther.
What you're really looking for is the fireworks that will happen when those companies and many more just like them list on Chinese exchanges at some point in the future.
Most investors find that inconceivable, but so were American Depositary Receipts (ADRs) when they first came on the scene in 1927, and American investors suddenly had access to powerful foreign corporations without the hassles of buying shares in overseas markets.
Let me close with one final thought.
Most doomsayers want you to believe that whatever disaster they're promoting is an instant event when, in fact, things hardly ever work out that way.
Currency shifts by their very definition are longer-term events. So you've got to play them that way by moving your money to align with China's money ahead of time.
Before everybody else figures out what's at stake.
I believe we (thanks to Mr. Squires, Toshi and others) are ahead of the curve here with the establishment of Quantum Materials (Asia) Co. Ltc.
Another day closer.
Bill
