Diversify your saving in Chinese Yuan

We went into a great deal of details on the ongoing weakness of the Chinese Yuan (RMB) in this week's macro bottom line, but our position is clear: this is only a short-term phenomenon. In the long run, RMB will continue its super uptrend against the US$. The fundamentals will just not allow it to weaken for too long. If you also share with our views, then this is a good opportunity to diversify your savings into RMB. If you have some money sitting idle and you only want to keep it away from stocks or other expenditure, then you may consider to convert part of this portion of your saving into RMB. You of course can simply exchange it to RMB and in the US you may do this at EverBank via RMB CD.  But you have to lock up your money for some time and you earn almost nothing from the CD given the currently extremely low interest rate. I have a much better idea for you: buy PowerShares Chinese Yuan Dim Sum Bond (DSUM). DSUM is an ETF that tracks the Citi Custom Dim Sum (Offshore CNY) Bond Index. Such Dim Sum bonds are RMB-denominated and generally are issued in Hong Kong. The ETF corresponds very well against the RMB exchange rate: it goes up or down with RMB. The beauty of this fund is that it also pays you with a current yield of over 3%. You can buy and sell it just like a stock and you get paid for the time you hold it. If you believe RMB will go up in the long term, then DSUM will also go along with it. While you should not expect it to go up 100% within a few years, as this is a currency-based bond fund, I won't be surprised to see it go up 30-50% in the next few years. As a diversification saving strategy, this will be a great result I can expect. I don't know if the absolute bottom has been in for RMB but I think it is very close to it.