Seeking Alpha

The yen's decline is the real deal, says George Soros holding court at Davos, and it's going to...

The yen's decline is the real deal, says George Soros holding court at Davos, and it's going to make for some unhappy German exporters. The euro, he says, is the outlier currency as the ECB stands alone among the major central banks in not engaging in QE. His comments hit an already weak yen, sending the dollar higher against it by 1.8% to ¥90.20. The hedged Japan equity fund (DXJ) +2.6%.
Comments (7)
  • kmi
    , contributor
    Comments (3984) | Send Message
     
    Hm. I know there was something in the market currents recently, but I'm actually pretty amazed at the comments about the Yen. No one has a chart that goes back more than a year on this?
    24 Jan 2013, 04:26 PM Reply Like
  • s2rosenberg@chx.com
    , contributor
    Comments (31) | Send Message
     
    Qe = massive lending. Lending = subsidy to Japan companies. Subsidy = discounts to customers = more sales vs. German competitors. Japan gov't short term looks like hero, long term questionable by delaying industry shifts and misallocation of capital in a global economy.
    24 Jan 2013, 04:54 PM Reply Like
  • Tres Knippa
    , contributor
    Comments (38) | Send Message
     
    I am interested to know why Soros says ECB stands alone not engaging in QE. When the central bank buys the bonds of governments, that is not QE? Sorry George. I respectfully disagree.
    24 Jan 2013, 08:40 PM Reply Like
  • divinecomedy
    , contributor
    Comments (466) | Send Message
     
    I didn't hear anybody complaining when the Japanese was manipulating the Yen HIGHER for obvious reasons. But at the very least, they did, what they are doing right now is simply catching up with other countries. Come on, Japan relies big time on its exports and having a strong currency during economic depression is just suicide.
    24 Jan 2013, 08:43 PM Reply Like
  • Robert.from.Ct
    , contributor
    Comments (376) | Send Message
     
    I own a small position in DXJ.The only way to play a weak yen.I may buy more but got killed on Apple today. Regards,Robert
    24 Jan 2013, 09:13 PM Reply Like
  • change is the only constant
    , contributor
    Comments (1734) | Send Message
     
    That would mean the euro is the new carry trade currency, and deflation is where all this euroland austerity is going to go. Which would mean also buy euroland debt. (What a difference a year makes).
    But how will they handle the debt and deflation? Follow Japan's example?

     

    Something is flawed in Soros' logic here, but I am not sure where.
    25 Jan 2013, 06:35 AM Reply Like
  • Alutok
    , contributor
    Comments (2) | Send Message
     
    Soros often throws out decoy information.
    25 Jan 2013, 08:17 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|