• A currency war has been declared. Did China intentionally manipulate their currency? watch here

A currency war has been declared

 

A currency war has been declared

In this week’s video insight Andrew discusses the recent sharp depreciation in China’s currency relative to the USD. This move was surely an intentional policy move and came just days after President Trump surprise-tweeted new tariff measures against Chinese imports to the US. So what does this currency war mean?

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Andrew Macken is the Chief Investment Officer of the Montaka funds and the Montgomery Global funds. He established MGIM in 2015 in partnership with Montgomery.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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3 Comments

  1. Thanks Andrew for another insightful video. Can you please explain how the Montgomery Global Funds China exposures are positioned in response to the trade war? Are you still rotating out of China stocks or do you plan to use the volatility to add Chinese stocks to the portfolio? Thanks Chirayu

    • Thanks for your comments and questions, Chirayu.
      Over recent weeks, we have reduced our Chinese exposure and increased our US exposure. We believe there are great long-term opportunities in China, however, the near-term uncertainty from the US/China dispute and now the HK/China dispute is keeping returns depressed. The US continues to remain the strongest economy in the world and benefits from the “flight to safety” effect in periods of heightened risk-aversion.
      Hope this helps to answer your questions,
      -AM

  2. Does this not mean that China is betting its currency reserves?
    Looks a lot like Texas hold them poker .
    Not sure what the hands are though.
    As the devaluation can really only hurt themselves long term if sustained.
    Ben

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