iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,864 Blog Posts

The Return of the Samurai

If we go up in 2013, Japanese equities are my favored picks, thanks in part to the newly elected government’s plan to stimulate by 10-15 trillion yen. Aside from manipulating the yen lower, the LDP isn’t fucking around with China and intends to bulk up on defense spending, as well as domestic infrastructure spending. They’ve ordered the Bank of Japan to ‘bend the knee’, laying the ground work for a renaissance in Japanese equities.

Exporters should do best, as the rise of foreign currencies boosts earnings. You can short the yen via YCS.

My top pick is HMC, followed by TM. Those are the lay ups.

Some others stocks on my radar include KUB, NMR, MTU, CAJ and SNE. Truth be told, there aren’t any expensive Japanese stocks that are traded in the US. All of them trade under 2x sales.

If individual equities isn’t your thing, consider ETFs NKY, JOF or EWJ.

I’ll be advantageously bulking up on HMC until it is my largest position.

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30 comments

  1. gonzo

    Market is all over this and already jacking up the bid for ur piks prior to bell. Feel like I’m late and missed the bus

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  2. david

    Fly, I noticed you didn’t mention DXJ as an ETF to play the Japan long, yen short theme. Is it because it is not liquid enough or expenses, or due to another reason. Thanks for your reply.

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  3. The Plumbers Crack
    The Plumbers Crack

    Excellent ideas Sir Fly.
    Thank you.
    I guess I should quit being a piker and pony up some HMC profits from yesterday and buy a Distinguished Gentlemen PPT subscription.

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  4. The Eye-Talian Stallion
    The Eye-Talian Stallion

    VPL

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  5. joe

    anyway you cut it, the US bull market is getting long in the tooth..goin on 4 years now..we definately have to go find lower hanging fruit in this world

    my bet is china/emerging markets..at least in those places, there are fundamental trends of real growth as opposed to the bullshit lies/manipulation here AND japan but hey, who doesn’t love the yen carry trade trade..good times

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  6. seigniorage

    My plays: wontons, white rice, sewage/trash disposal ……

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  7. Zero Dark Kitty

    Why is there such a lack of Japanese stocks, ADRs, ETFs in the US market? There’s maybe 20?

    China has dumped a bunch of “Chinese Burritos” in our equity markets. China likes our money, I guess Japan nationalism does not like our money.

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  8. david

    Fly, what do you think about DXJ?

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  9. Contrarian George

    Japan is the ultimate contrarian play. When was the last time it peaked 1989? 23 years ago? How much longer can it go down?

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    • Leo

      THats what they said 16 years, 17 years, 18 years, 19 years, 20 years ago. etc. One day will it will be and Kyle Bass will be thrown to the sewer.

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  10. The Eye-Talian Stallion
    The Eye-Talian Stallion

    Big box sproting goods stores are hiding their assault rifles. I witnessed two stores sellout within hours. High cap mags have sold out. cheaperthandirt and Dicks have suspended sales. Remington removed pictures of their rifle.

    Geithner calls his fund buddies and tells them to dump firearms. Vanguard says tough luck, “socially responsible” investment trades do not interest us.

    SWHC +6%

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    • Mr. Cain Thaler

      RGR, bitches.

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      • The Eye-Talian Stallion
        The Eye-Talian Stallion

        17,000,000 FBI firearm background checks have been filed YTD.

        Accessories are next. Quad rails, lights, verticle grips, slings, mags, lasers, red dot, holographic sights…

        L-3 EOTech BABY!

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        • The Eye-Talian Stallion
          The Eye-Talian Stallion

          How is that SWHC short working out bitches?

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          • Leo

            Le Fly Bottom is in. It wasnt the Fly Bottom since the Fly doesnt sell at bottoms. But Le Fly? He’s French. He is likely to surrender.

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  11. xxxHuggieBearxxx

    Whatever i own goes down. That is what my life has come to.

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  12. Trading_Nymph

    Fly, Tonight we will find out what the Crazy Wild with QE new Japan Govt will give us. Last night I came to the conclusion that so much of this run up was Japan Clam not Fiscal Cliff…so lets see what happens. BTW, Question, if we go Risk Off, the Yen is no longer so safe, so will everything go to the USD?

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  13. razorsedge

    im still waitin fer a wash out. the gains i had to aug r still intact.

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  14. Razerbackjack

    Fly, what’s your plan with VHC?

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  15. Ohthe BOMB

    What does Liverlips Bartiromo NOT understand about “Social Security is NOT a driver of our current debt and deficits, or our deficits over the next ten years”?

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  16. razorsedge

    BDIY, lol… double top? and fade. tankers tanking

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