Money Trouble: An Asian Currency Opportunity

In the aftermath of China’s spectacularly bad summer — a lull punctuated by a slow and steady trickle of worrying numbers from the world’s second-largest economy — it’s hard to spot value in a widely unsettled Asia. Given the ugly macro environment, we advocate a short position in the Hong Kong dollar, a play with as much upside as your appetite can handle and minimal downside risk.

It looked like the first sign of impending doom: after years of too-good-to-be-true GDP growth numbers and a furious bull run in equities, a thunderous collapse in China’s markets that turned regional and global jitters into full-blown panics amid a shock devaluation …

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