Chinese yuan depreciates further: What is the endgame? | Page 2 of 2 | ETF Trends

1 Source: Cornerstone Macro, Aug. 12, 2015

Important information

Disinflation, a slowing in the rate of price inflation, describes instances when the inflation rate has reduced marginally over the short term.

Deflation is a decrease in the general price level of goods and services that occurs when the inflation rate falls below 0%.

Deleveraging refers to a company’s attempt to decrease its financial leverage, such as by immediately paying off existing debt on its balance sheet.

The yield curve plots interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates to project future interest rate changes and economic activity.

The fed funds rate is the rate at which banks lend balances to each other overnight.

Investments in companies located or operating in Greater China are subject to the following risks: nationalization, expropriation, or confiscation of property, difficulty in obtaining and/or enforcing judgments, alteration or discontinuation of economic reforms, military conflicts, and China’s dependency on the economies of other Asian countries, many of which are developing countries.

The dollar value of foreign investments will be affected by changes in the exchange rates between the dollar and the currencies in which those investments are traded.