Some investors have piled up their euro holdings rapidly this week, overreacting to the Fed minutes. This long-euro position won't last.

This is why Europe is still an unattractive venue for offshore investors, and why the euro is as cheap as it is.

The reaction [to the Fed minutes] was very emotional, and it is still undecided whether 5% is the end. We look at gold and commodities. These are inflation indicators.

I think investors should take a step back and look at the big picture. I think the (Fed) is doing its job and investors should do theirs -- avoid those companies that do not have a track record of growth.

This really puts the spotlight very acutely on the Fed minutes this afternoon.

If the yuan rises too rapidly, a lot of overseas investors might move their factories or companies out of China.