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Strategies & Market Trends : Value Investing

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From: Paul Senior2/4/2016 2:33:36 PM
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Yuan devaluation. I was wondering if any of you guys were considering the possibility of a serious yuan devaluation and how that would affect USA stocks? I have been reading of some smart investors who are predicting an upcoming devaluation. Here's the latest article I've caught:

cnbc.com

If there is a large deval, I figure it's going to make China much more competitive with USA products, thus affecting my stocks such as fertilizer companies. That worries me; they're already beat down. Also it will make profits on domestic yuan sales (i.e. Chinese-based companies), less when translated into US dollars. (Worried about that, I've sold some such as CHL, NTES) And USA companies that sell into China would have difficulty too. In short, it will be or could be a huge international problem -- adversely affecting many of my stock positions.

At this point I've no idea how I would hedge against a devaluation. Mike B would know -g-
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