An excellent opportunity to buy Yen and sell equities as Asian stock rally spurs carry trades
Marla Guthrie
Mar. 9, 2007

The yen and the world stock markets including that of UK and US are moving in opposite direction. The depressed Yen has helped the world stock markets for many years. This is changing fast. The Yen is undervalued by 70%. Yen can go up 70% and stock markets worldwide can collapse 70 to 80%.

An excellent opportunity is here to buy Yen and sell equities as Asian stock rally spurs carry trades. Currently the Yen is in a short down trend as Stocks recover somewhat after shoulder-head-shoulder formation.

The Yen represents the strongest economy based on the trade balance data. As Bank of Japan faced deflation because of heavy debt, it lowered Yen by selling Yen and buying dollar in open market in a coordinated way for more than two decades.

Yen’s artificial weakness was great for the stock markets. Bank of Japan bought Dollar and sold Yen for a long time. That entire Dollar went into buying US Bonds and Notes. That helped keeping the interest rates low. That in turn helped the real estate market and the stock market. The economy boomed although the prosperity was unevenly distributed. It is normal in false booms that we witnessed in the last sixteen years.

Now Yen is spurring back to its real values. And, that is real bearish for stock markets. Longer term Yen will get very strong and the stock markets as well as real estate market will get real bad.

New Century collapse resembles dot COM bust in year 1999-2000 – what effect does mortgage bubble burst have on economy, equities and gold
Sam Adelton
The economy is deeply affected as people are falling behind in paying their mortgage payments. The ripple effect is serious. In those circumstances, people stop eating out, spending anything unless absolutely essential.
READ MORE>>

An excellent opportunity to buy Yen and sell equities as Asian stock rally spurs carry trades
Marla Guthrie
Yen’s artificial weakness was great for the stock markets. Bank of Japan bought Dollar and sold Yen for a long time. That entire Dollar went into buying US Bonds and Notes. That helped keeping the interest rates low.
READ MORE>>

How will the world be if Dow falls to 2000 by December 2012?
Alan Hershey
There will be no real credit available. The banks will be scared to death to give a loan to anyone. Simply put, you are back in old days – pay for what you buy in cash.
READ MORE>>

The collapse in Wholesale Sales compared to last month’s data – a confirmation of deflation driven deep recession – where will Dow go?
Peter Oberois
The collapse in Wholesale Sales is very significant. The whopping drop has drawn attention to many smart money players. Some are realizing for the first time that deflation is in the cards.
READ MORE>>

An improved trade balance – are you ready to buy dollar index?
Karen Zuba
The trade balance is improving. It is still very bad but the situation is changing slowly and steadily. The energy dependence is actually going down. A trade deficit of below $60 billion is decisively bullish for Dollar index.
READ MORE>>

Close to 100 K Nonfarm Jobs points to stagflation changing to deflation driven recession
Peter Oberois
Underemployment has finally transformed into rising unemployment. The stealth effect of deflation is finally here. The low nonfarm job growth and the declining rate of the same is the result of slowdown in manufacturing and construction sector.
READ MORE>>

MORE ARTICLES >>