Barron's Recap: What's Next For The Yuan?

Cover Story

"China's Yuan Could Fall 10% or More" by Randall W. Forsyth.

History suggests that China's currency devaluation will not be a one-time move, says this week's cover story in Barron's. See why that could mean more trouble ahead for multinational consumer stocks such as Procter & Gamble Co PG.

The article likens China's move to when President Nixon unilaterally severed the dollar's last link to gold in 1971. And it puts the move in perspective against the slump in commodities and emerging markets, the ongoing currency war and the Federal Reserve's upcoming move on interest rates.

Related Link: China's Yuan Devaluation: What You Need To Know

Feature Stories

In "Potash Corp. Could Produce Bounteous Gains," Avi Salzman makes a case for shares of Potash Corp./Saskatchewan (USA) POT to rally, as fertilizer prices stabilize and growth resumes next year. The leading potash producer also sports a generous 5.8 percent yield.

"IAG, Parent of British Airways, Has a Long Runway for Profits," by Jonathan Buck, takes a look at how the tail wind of lower fuel prices and exposure to robust markets in the United States and the United Kingdom could help International Consolidated Airlines Group deliver first-class returns.

David Englander's "Small New Jersey Bank Has Big Upside" suggests that shares of Kearny Financial Corp KRNY could rise 20 percent now that it is suddenly flush with excess capital and trading for a cheap valuation following its thrift conversion.

Juliet Ellis of the Invesco Small Cap Equity fund is profiled in "Big Ideas and Small Stocks Pay Off at an Invesco Fund" by Sarah Max. See why Ellis seeks companies that have actual revenue and the potential for 25 percent gains in 18 months.

In Lawrence C. Strauss' "Lazard's Blake Runs a Small Portfolio With Big Diversification," Chris Blake, lead portfolio manager of the Lazard U.S. Equity Concentrated Portfolio, proves that it is possible to be diversified with just 20 stocks. Blake also names some of his current picks.

Check out "A Sleuth's Nose for Profit," in which Steve Garmhausen takes a look at how successful Morgan Stanley advisor Victor Livingstone has beaten the markets over time using a long-term perspective and alternative assets such as hedge funds and real estate investment trusts.

As real estate prices soar in superhot gateway cities, Citi Private Bank's Dan O'Donnell is steering wealthy clients toward choice properties in nearby neighborhoods, according to Penta article "Where Citi's Clients Look for Real Estate."

"Rules for Liberty" is an editorial commentary by Thomas G. Donlan that asks whether America is casting Internet governance to the wolves.

Follow-up article "Buffett's 'Elephant' Deal Will Boost Berkshire's Value" explains why the Berkshire Hathaway Inc. (NYSE: BRK-B) acquisition of Precision Castparts could produce an attractive return, and it also suggests that oil prices may be headed toward $20 a barrel.

In Barron's Asia: "China's Reckless Self-Interest Rattles Asia," by Wayne Arnold, says that it really does not matter why the People's Bank of China moved to lower the yuan's value. What matters is the effect the irresponsible move has.

Related Link: Potential Proof Apple Is Creating A New 'Stealth' Product

Columns

Columns in this weekend's Barron's discuss:

• How stocks are beginning to trade more on their own fundamentals
• Why Warren Buffett's fondness for International Business Machines Corp. IBM is bad news
• Barron's fifth straight year of record revenue and profits
• Whether peer performance is useful for funds
• Whether small cap ETFs rely too much on biotech
• The diminishing odds of a Google Inc GOOG GOOGL dividend
• Encouraging signs for economic growth
• Whether estimates of U.S. income inequality are exaggerated

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