Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways To Play: Uncertainty, Inflation in China

By

Strengthen your portfolio in good times and bad.

PrintPRINT
According to the Wall Street Journal, economists are growing more concerned with the complexity of China's inflation. Food prices appear to be stabilizing and some expect further declines due to an easing in key items such as pork.

However, some believe risks for the country have actually increased as more uncertainty has developed with the cyclone that hit Myanmar, a major rice producer. Regardless, the most disconcerting evidence is the price increase in other goods and items. Core inflation had been running at 1% or less for much of 2006 and 2007. Now the consumer price index, less food and energy, has risen to 1.8%, likely reflecting how higher labor and raw material costs have fed into a broader range of goods.

Economists at J.P.Morgan forecast nonfood inflation to average 2.5% for all of 2008. With China being a key global supplier, this could have implications around the world (See Two Ways To Play: Inflation Reaches Tech).

From the Bull Pen: The bulls have a new tool to consider as a hedge against inflation: the E-Tracs UBS Bloomberg Long Platinum ETN (PTM), which made its trading debut today. Professor Lance Lewis warns of the credit risk in the ETN for investing purposes, "but as a trade, it might make sense."

From the Bear Cave: Chinese Bears can consider going long the Ultrashort China ETF (FXP) which tracks the inverse of the FTSE/Xinhua China 25 index.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE