China raised it's interest rates once again. They raised overnight another 0.18% to 7.47% (wow, don't over do it, China!)
Their increases are paltry when compared to the growth of inflation and their economy. For instance, their CPI rose 6.9% in November (fastest pace in two years). Their economy is still growing at 11+% a year. That's huge! Most countries are growing at 1-3% annually right now.
So with inflation out of control and interest rates being raised...the yuan will continue to strengthen against the U.S. dollar in 2008. This will be one of the few "fast growth" stories in 2008 with the overall global economy slowing then.
I hate telling you something is going up and then not have a way to trade it and take advantage of it. So let's see what is available. The CNY (yuan/renminbi) is not easily traded or very accessible yet and they've made it that way purposefully.
However, my friend, Chuck Butler at Everbank (www.everbank.com) offers a Chinese Yuan CD that's held here in the U.S., not overseas. So if you want to take advantage of 2008's biggest growth story in a conservative way, then check out that CD. Tell Chuck that Sean Hyman, from the Sovereign Society, sent ya. He'll take care of you.
Don't worry, I don't get a commission check if you buy that bank's CD. I just want to make you aware of things that others aren't aware of. I want my readers to know about things others don't see.
Sean Hyman
Editor/Trader www.money-trader.com
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