ikkyu

Small-Cap Japan ETFs: Big Things May Come in Small Packages

Greetings,

Unfortunately, japanese equity markets and the $/Yen are rather strongly positively correlated, so investors in these u.s. funds are going to suffer from currency situations when things turn around in Japan.

By the way, J-reits are a great deal as well.

Cheers from Osaka,
john

Currencies: Dead Cats and Yapping Dogs

Greeting Ray,

Thanks for the ongoing articles about FX carry. It is amazing to see how little info there is out there for such an awesome strategy. You are about the only mainstream writer that details it.

Also, thanks for alerting us to JEM, not sure how i missed that.

I think that you will find JEM and DBV have strong correlation in a rising to high volatility market, so i am afraid that i don't share your diversity views with respect to regions and countries. Just compare USD/TRY and NZD/JPY over the last couple years to see what i mean. Many people look at fx carry as a trade with a risk premium because the reversals are so violent. I see FX carry collectively as being either ON or OFF.

I also do not believe the principle moneymaking of FX carry lies in collecting interest, but then i only employ pairs with a spread >3%.

Nonetheless, i share your enthusiasm. And look forward to more thoughts.

Cheers from Osaka,
john

Investing in Non-U.S. Stock Markets

Greetings. I always enjoy your posts.

The world map appears to have an incorrect key. It seems the emerging and developed non-U.S. markets are switched.

Cheers from Osaka,
john

Why Are Emerging Market Prices So Volatile?

That was an extremely helpful explanation.
Thanks!
john