The red-hot Chinese economy is slowing, and the government is pushing back. This strategist has a way to play the tension.
China's economy is slowing so much, the country has essentially ordered its citizens to 'shop till you drop' by designating National Consumption Month . Gina Sanchez, economic director of equity and asset allocation at Roubini Global Economics, is skeptical.
Sanchez expects a push for consumers to spend to simply accelerate consumption rather than increase it overall. In addition, she told CNBC's Melissa Lee , "we think that falling property prices are going to impact the wealthy and that's going to impact National Shopping Month." Still, she does anticipate a certain inflationary impact from the spending push - and of course inflation tends to be positive for a currency.
Rebecca Patterson , chief markets strategist for J.P. Morgan Asset Management, Institutional, agrees, and points out that as far as China is concerned, "you can play it through a lot of other liquid markets."
Patterson has looked at several currencies for patterns parallel to China's, and she has found a winner: the Australian dollar, at 88 percent correlation.Page 1 of 2 | Next Page