100% invested.
75% China, 20% Brazil, 5% USA (commodities only).
In China, trying to shift into names whose business strengths involve genuine creativity and technological innovation (e.g., TSTC, CPQQ), and that sell domestically, standing to benefit most from yuan revaluation (e.g., BSPM). Trying to shift out of names that are export dependent and whose only business strength is the fact that they can dump cheap chinese labor and a lowpegged chinese currency on the global market. That advantage will be tested in the near future.
Not as concerned about the china "bubble" talk, or the european sovereign debt problems. Hype.
Major headwinds:
1) Double dip recession in U.S. and Eurozone
2) High unemployment in U.S. and Eurozone leading to trade wars, punishing chinese exporters
Yuan revaluation is coming. Prepare your portfolio.
Debating whether to go short chinese banks (via FXI) for protection on a bounce, or to go short overvalued U.S. names that export to china and that are exposed to a slowdown in china's construction buildout (e.g., CAT)
