This morning, the Chinese government tweaked the way it values its currency. The yuan, which was once pegged exclusively to the U.S. dollar, will now be valued against a balanced collection of different foreign currencies.
Yes, you should care.
Currency trading may not be your cup of tea. You may not even like tea. But if a currency move happens to impact all the tea in China, it should matter to just about any investor.
For starters, Chinese companies have been popular within stateside growth-stock portfolios. ShandaInteractive
A stronger yuan will serve Chinese companies well. Chinese exporters may feel a slight sting, but that won't necessarily affect companies such as The9
That's right. If you own stock in a major American conglomerate that relies on exports to China for a slice of its revenue pie, you stand to benefit. The move to beef up China's yuan may have lowered the dollar's value against many world currencies, but that drop also makes it easier for stateside exporters to compete globally.
So, yes, there's money to be made all over with today's move. That's green tea you're sipping. Tastes a lot better now, doesn't it?
Longtime Fool contributor Rick Munarriz has been a fan of China's high-margin gaming stocks for a long time and recommended NetEase.com last year to Rule Breakers subscribers. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.