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Money Appears to Be Tiptoeing Back into Emerging Markets

Yeah, I don't think the yen rally lasts much longer either. It's way over done. Japanese exporters are bleeding like crazy...layoffs left and right now, profits erroding...why? The yen is far too high and they aren't hedged to these present levels to offset it. Don't get me wrong, this isn't 100% of the problem...but it's a huge, huge portion of it.

You'll see USD/JPY much higher by the end of the year for sure.

Yeah, I wrote an article not too long back ago that stated since volatility was dying down, etc. that people should consider taking profits on the yen.

By the way, check out my blog sometime. I think you'll like the You Tube videos on there: www.mywealth.com/blog


On Feb 12 01:42 AM Kunst wrote:

> "Last year, the yen literally beat the performance of 177 currencies."
>
>
> What are the chances that this will repeat in 2009? I am short FXY
> (via puts).
>
> Also, if Japan money is moving into emerging markets, what do you
> think China is going to do with all those dollars when they see the
> USD heading downward?
>
> BTW, they must have made a very nice profit on all those treasuries
> they own, so they shouldn't complain (but they will) when values
> go back down as interest rates rise.

Money Appears to Be Tiptoeing Back into Emerging Markets

Yeah, Brazil and Turkey could be really strong. We'll have to watch their charts to see how they all start to do...but that could very well be right.


On Feb 10 08:41 PM derryl wrote:

> Of the emerging markets, I have a hunch Brazil will prove strongest.
> Brazil strikes me as bold and innovative and those traits should
> bear fruit for anybody who can figure out how to invest and cash
> in on this.

Money Appears to Be Tiptoeing Back into Emerging Markets

Glad you're at least willing to check out the concept and give it some thought. Thanks for reading.


On Feb 10 11:08 AM kelm wrote:

> I buy your argument that this is where Japanese money is going. That
> is probably a good bet that those currencies will rise with respect
> to the Yen and perhaps the dollar but where is the argument on how
> well their economies will do in the presence of the global downturn?
> What about those nation's ability to access the international debt
> markets i the presence of the huge demand from Europe and America
> for sovereign debt financing this year?
>
> You have noted an important trend that may well be worth following
> - but you need a bit more data.