Jason's BigDeaL Trade Alert #26 On Monday, global risk assets were boosted by hope for more Chinese stimulus. The country's import and export data were so bad that traders were confident that the ruling Communist Party would take action. I said this "boost" wouldn't last – and boy, was I right. When Beijing announced a 2% devaluation of the yuan, all heck broke lose. The funny thing is: All monetary stimulus is a form of currency devaluation, but the PBOC's direct devaluation was seen as heavy-handed and troubling. This led to a big drop in emerging markets and a spike in volatility – exactly what our portfolio was positioned for! ...

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