I can’t remember ever seeing a currency down 3.5% in a day and that being good news for the host country.
Last night the Bank of Japan announced they were going to buy bonds, up to 40 year maturities, forever, open ended. In other words, they are following the golden path of Benjamin Bernanke and have begun to QE themselves to prosperity.
Tell me, do I lie?
The auto makers, HMC and TM, are the obvious winners in a weak yen environment. I’ve been highlighting Japan for 6 months now and it is my favorite market.
The big winners will be companies with NIKKEI exposure, NMR, MTU and MFG come to mind. But HIG (I sold yesterday) also has some interesting upside exposure there too.
The easiest way to play it, ironically, is through an American asset manager, WETF. Wisdom Tree owns the only hedged ETF, DXJ, which has been enjoying 90%+ organic growth in assets raised, because it is the only way to enjoy the upside of the NIKKEI, while hedging out the currency risk.
WETF makes for a great acquisition target for BLK, who owns the iShares family of funds.
Lastly, there is a double inverse, triple lindy, way to play the denigration of the Yen, via YCS.
Pretty sure Bitcoin has been down more than 3.5% in a day…
Nevermind. I’m a retard. I just learned to English and decided to read the rest of the sentence.
Do put me in timeout. I deserve it.
Pirates are exempt from proper usage of english.
Bang on.
Poor Uncle Ben.
As per prior posts – Japan can “QE Karate Kick Forever”!
Take that U.S Fed.
TMoe added to WNR
TMoe BOT GIFI
DXJ is loooooooong – don’t try to trade in and out and apparently, DUST is long since it is up like 70% this year – who knew to just hold it? Fire and bimestone upon all of you.