Yuan Revaluation to Boost These 7 Stocks: Pro
The Chinese yuan rose to its highest close in six months against the dollar as traders fretted over a possible yuan revaluation over the weekend. Who benefits from the revaluation—if it happens? Jim Oberweis, editor of The Oberweis Report, shared his insights. (See his stock picks, below.)
“Over the course of the next 6 months, you’re going to see significant appreciation and there’s going to be winners and losers from that move,” Oberweis told CNBC.
“Forwards, markets are predicting 2 to 3 percent, I’m thinking it will be closer to 5 to 6 percent.”
If the yuan goes up, "all stocks in China" are going to follow suit as a result, said Oberweis.
“It’s also a positive for investors in companies in the U.S. that export to China,” he noted. “Not Wal-Mart-type companies, but companies like Boeing and Honeywell that export high-value added items.”
Companies in the clean energy business will also benefit from higher commodity and natural resource prices, added Oberweis.
- Watch Oberweis' Previous Appearance on CNBC (Mar. 22, 2010)
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CNBC Data Pages:
Obwerweis does not own shares of SLB, RIG, FSLR or CAT.
Obwerweis owns AMSC in his emerging growth fund.