China will undergo a major political transition at the end of the week, and this pro has a trading plan.
In case the U.S. election isn't providing enough market event risk for the coming week, there is also the small matter of a generational changeover in China's leadership. The current vice president, Xi Jinping, will take over and scores of other posts will change hands.
So how do you trade the transition, especially given the slowing growth in China?
Andrew Busch, global currency and public policy strategist at BMO Capital Markets, says a play on disappointment in China is the way to go. He predicts that the country's stimulus efforts in recent months will continue, but "my view is that they're not going to provide enough to really get these commodity currencies or Aussie, kiwi, Canada to get juiced from it."