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Skittishness in the markets has the yen (FXY) resuming gains against the dollar, with dollar/yen...

Skittishness in the markets has the yen (FXY) resuming gains against the dollar, with dollar/yen sliding 1.2% to ¥101.13. After a couple of frightening plunges in the past few sessions, the Nikkei took the yen's gain rather well, falling just 0.9% to 14,189. EWJ -1.7%, DXJ -1.5% premarket. Action to eye: The JGB market as the 10-year yield carves out a new Y/Y high, up 4 bps to 0.93%
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Comments (2)
  • sreimer77
    , contributor
    Comments (241) | Send Message
     
    A falling dollar should mean a rebound in commodities. If commodities start to go up, then inflation will start to show its ugly head and this will give the FED room to reign in its QE. Giving that commodities and global cyclical stocks have lagged significantly (Vale is at a multi-year low!) even as supply is being reduced whether through reduced investment or idled operations and of course endless QE by every central bank around the world, we should see a significant rebound in these plays such as Vale.
    29 May 2013, 09:28 AM Reply Like
  • Viper740
    , contributor
    Comments (176) | Send Message
     
    You need to be careful. We are not experiencing "endless QE by every central bank around the world". Rather, the US will begin winding down it's QE in the coming years, and the QE that Japan is doing is unprecedented in scale and not comparable to what the US has done.

     

    It's better for investors to invest in productive assets that produce economic growth and employment, as opposed to gold, which, besides being shiny, doesn't actually produce any value other than that which those who believe in it attach to it.
    29 May 2013, 08:31 PM Reply Like
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