Sooner Rather Than Later

Sooner Rather Than Later

In the days leading up to and following this past Sunday’s Japanese election, various experts have been advocating selling the yen and buying Japanese stocks. Their view was that a change in leadership means the country will soon embark on an aggressive round of money printing that will weaken the currency and benefit Japan’s export-sensitive industries.

I believe they are right (in the longer-term, at least). In fact, I posted two commentaries (including custom charts) at Panzner Insights, my members-only website, on Japan’s currency and its equity market, on November 21st and November 23rd, respectively, where I essentially argued the same thing.

Needless to say, those of you who believe this perspective makes sense would probably agree that if would have been better to hear about it a month ago, when the yen-dollar rate was 2 percent higher and Japan’s Nikkei-225 index was almost 6 percent lower.