This article was first published on Patreon on 5 July 2018
A week ago I wrote about the low-hanging fruit of macro investing. And the gist of that post was that a lot of investors get the macro story wrong because they fail to understand the economics. I gave two specific examples where people have it wrong: the Japanese government bond yield play and the Chinese US Treasury bond play.
Today I want to focus on macro strategies I think make sense. And I want to come back to the Chinese case to lead in to this.
It's the currency release valve for the Chinese
On Tuesday, I sent this tweet about the Chinese currency market:
Interesting. Another interpretation is that the market is forcing the peg lower as evidenced by a widening spread between offshore and onshore yuan https://t.co/...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.