Dumping DBV on a Hunch

Roger Nusbaum submits: I have had a funny feeling about the yen of late so today I sold my personal position in the Currency Harvest ETF (DBV). I bought the fund in October at $25.48 and sold today at $26.11. Really it was a push. I thought/think of it as aggressive cash, and I think the 2%-ish return plus the little dividend I got seems about right in that context.

The drop of late in the yen seems strange to me, and I am concerned it could be setting up for some sort of globally disruptive correction. I am not drawing a parallel to 1998 as Dr. Roubini has done, but some sort of reaction that hits the high yielders is on my mind.

I never bought DBV for clients, and their only obvious exposure to this is Australia where as I had DBV along with Australia and Iceland.

The sale can be completely emotionless because DBV and USD/JPY show no signs of trouble today, and for all I know USD/JPY could go to 125, but I felt I was too exposed to a yen rally.