YCS Outperforms In A Yen Decline, Without Significant Tracking Error [View article]
This is a great piece, and timely as I was just thinking about this. Thank you for writing it.
I had another question along similar lines: Suppose that the yen went to something like 200 yen per dollar (or more), that YCS accordingly went up to something like 190, and then I wanted to sell. Is it possible that the ETF would somehow run out of the ability to pay those who wanted to sell, in the event of a massive increase in the price of YCS? Or does that kind of thing not happen?
Ben Bernanke may not have overtly mentioned monetary policy during prepared remarks for a commencement address at Bard College Saturday, but he did reference Yogi Berra, and in the process made a statement that those of a cynical persuasion might say could have been pulled not only from the quips of a baseball legend, but from any recent speech by hawkish regional Fed presidents (I, II, III): "It's tough to make predictions, especially about the future." Some would undoubtedly say the Chairman should consider this sage advice when making conjectures about the supposedly benign effects of policy tightening. [View news story]
Well said. I do have a penchant for extremism. But I do believe I'm right. I also agree with everything you said. (Except I'm not rooting for Communist China. I root for USA)
I have some great plays on right now that are paying off handsomely.
Ben Bernanke may not have overtly mentioned monetary policy during prepared remarks for a commencement address at Bard College Saturday, but he did reference Yogi Berra, and in the process made a statement that those of a cynical persuasion might say could have been pulled not only from the quips of a baseball legend, but from any recent speech by hawkish regional Fed presidents (I, II, III): "It's tough to make predictions, especially about the future." Some would undoubtedly say the Chairman should consider this sage advice when making conjectures about the supposedly benign effects of policy tightening. [View news story]
America's QE will taper off. The dollar will remain strong (the dollar is a far better choice than gold, which produces no value) and the world's reserve currency. Japanese yen is going to get hammered at levels hard to imagine today. Smart people would never put their money in China's corrupt communist system or currency; their economic "growth" is starting to fall off the cliff; get ready for bloodshed over there. Europe's uncompetitive, socialist economies are finished, just circling in the toilet waiting for the Euro to break apart, and for their societies to be slowly taken over by Islamic extremism.
Long live USA.
"America is still the best country in the world. But in today's world, that's like being valedictorian in summer school." - Dennis Miller
4 Scary Charts Warning Of The Next Financial Crisis [View article]
The Chinese communist party killed 50 million of its own people. That's far more than the Japanese or the British ever did.
The Japanese shouldn't, and wisely don't, pay much attention to the noise coming out of the Chinese communist party and it's proponents regarding history.
The Japanese bull market is too big of a deal to try and get cute, says Jeff Gundlach (video), advising not to try and time a market up 66% in 6 months. If QE is your reason for owning U.S. stocks, he says, why not pile into Japan (EWJ) where the asset purchase program is far larger? Maybe as leveraged as anything to the Japanese bull market is American ETF provider WisdomTree (WETF +3.5%), more than doubling this year as its hedged Japan equity fund (DXJ) reels in billions in assets. [View news story]
"The Japanese bull market is too big of a deal to try and get cute, says Jeff Gundlach (video), advising not to try and time a market up 66% in 6 months."
Is it just me, or does this sentence make no sense at all? I have no idea what it means.
4 Scary Charts Warning Of The Next Financial Crisis [View article]
Americans were mostly on good terms with the natives, contrary to the belief of many. Many American towns were named after local native tribes due to the good will between Americans and natives.
Thus, trying to compare any imagined ills Americans have done to native Americans, to the actual real atrocities committed by the Japanese against the Chinese, and committed by the Chinese against their own people, is nonsensical. It simply doesn't exist. USA has never committed large scale atrocities on the scale that Chinese, Japanese, or Europeans have done.
Remember, as recently as 2007, the rate was 125 yen per dollar. We're nowhere near that right now, so things will be fine for quite some time.
However, the scenario most likely to happen is the Japanese government will lose control of the yen's decline (and of JGB rates as well). It will be an economic Hiroshima, except this time, they drop the bomb on themselves.
4 Scary Charts Warning Of The Next Financial Crisis [View article]
Japan's situation is not comparable to ours. They are in much worse shape. The US has a growing population and accepts skilled immigrants to add to our economic output; a dynamic economy (where's the Japanese Apple, Japanese Google, Japanese Microsoft, Japanese Facebook, etc? All major Japanese companies are dinosaurs and dying, except for Toyota and Honda); we have shale natural gas and rich natural resources; a debt/GDP ratio that is much lower than Japan's (about 95% compared to 250%); and the dollar has the advantage of being the world's reserve currency.
The level of QE Japan is doing now is unprecedented even by US standards - it's a slightly lower dollar amount per month than us, even though their economy is 3X smaller. This is a really significant difference (The russians say "Quantity has a quality all its own")
At the end of the day, the US is not past the point of no return, but Japan is.
In Summary, The Tesla Model S Is A Dirty Car [View article]
Reporting an article because you disagree with its contents is nonsensical. It is also nonsensical to call someone dishonest because they disagree with your opinion. Two honest people can disagree.
Toyota (TM) wants regulators in the U.S. to approve a new headlight that can detect other cars and automatically dim a vehicle's high beam momentarily as it shines into a passing car. The technology is a nifty selling feature for the company in Europe and Japan, but is banned in the U.S. [View news story]
Funny. GMO food is legal in the US but banned in Europe and Japan. Let's make a swap.
Chinese industrial output growth printed at 9.3% in April, up from a seven-month low of 8.9% in March but still a whisker below economists' expectations of 9.4%. Investors were watching the data closely for signs of weakness after last week's trade data aroused suspicion for being too good to be true. Traders also got a read on the Chinese consumer as the National Bureau of Statistics said retail sales in the country grew 12.8% last month, matching forecasts. Despite the news, consumer discretionary stocks fell. Ultimately, investors once again come away with mixed feelings regarding the state of the Chinese economy. [View news story]
Are there any reputable economists who take the economic data given by the Chinese government as actually reliable and true? Or is it considered to be simply fabrications? I assume the latter, but I'm not an expert.
The U.S. dollar is definitely not in a race to the bottom. It's the world's reserve currency, and IMO is stronger than gold as a reserve. Especially considering the recent news that Q.E. will be tapering off from now on.
The Japanese yen, on the other hand, is finished. They are willing to trash it in order to keep yields on their bonds low and keep deficit spending.
YCS Outperforms In A Yen Decline, Without Significant Tracking Error [View article]
I had another question along similar lines: Suppose that the yen went to something like 200 yen per dollar (or more), that YCS accordingly went up to something like 190, and then I wanted to sell. Is it possible that the ETF would somehow run out of the ability to pay those who wanted to sell, in the event of a massive increase in the price of YCS? Or does that kind of thing not happen?
Ben Bernanke may not have overtly mentioned monetary policy during prepared remarks for a commencement address at Bard College Saturday, but he did reference Yogi Berra, and in the process made a statement that those of a cynical persuasion might say could have been pulled not only from the quips of a baseball legend, but from any recent speech by hawkish regional Fed presidents (I, II, III): "It's tough to make predictions, especially about the future." Some would undoubtedly say the Chairman should consider this sage advice when making conjectures about the supposedly benign effects of policy tightening. [View news story]
I have some great plays on right now that are paying off handsomely.
Ben Bernanke may not have overtly mentioned monetary policy during prepared remarks for a commencement address at Bard College Saturday, but he did reference Yogi Berra, and in the process made a statement that those of a cynical persuasion might say could have been pulled not only from the quips of a baseball legend, but from any recent speech by hawkish regional Fed presidents (I, II, III): "It's tough to make predictions, especially about the future." Some would undoubtedly say the Chairman should consider this sage advice when making conjectures about the supposedly benign effects of policy tightening. [View news story]
Long live USA.
"America is still the best country in the world. But in today's world, that's like being valedictorian in summer school." - Dennis Miller
4 Scary Charts Warning Of The Next Financial Crisis [View article]
The Japanese shouldn't, and wisely don't, pay much attention to the noise coming out of the Chinese communist party and it's proponents regarding history.
The Japanese bull market is too big of a deal to try and get cute, says Jeff Gundlach (video), advising not to try and time a market up 66% in 6 months. If QE is your reason for owning U.S. stocks, he says, why not pile into Japan (EWJ) where the asset purchase program is far larger? Maybe as leveraged as anything to the Japanese bull market is American ETF provider WisdomTree (WETF +3.5%), more than doubling this year as its hedged Japan equity fund (DXJ) reels in billions in assets. [View news story]
Is it just me, or does this sentence make no sense at all? I have no idea what it means.
4 Scary Charts Warning Of The Next Financial Crisis [View article]
4 Scary Charts Warning Of The Next Financial Crisis [View article]
Thus, trying to compare any imagined ills Americans have done to native Americans, to the actual real atrocities committed by the Japanese against the Chinese, and committed by the Chinese against their own people, is nonsensical. It simply doesn't exist. USA has never committed large scale atrocities on the scale that Chinese, Japanese, or Europeans have done.
Japan's Market Drama Continues To Amaze [View article]
Japan: Free To Inflate In Peace [View article]
However, the scenario most likely to happen is the Japanese government will lose control of the yen's decline (and of JGB rates as well). It will be an economic Hiroshima, except this time, they drop the bomb on themselves.
4 Scary Charts Warning Of The Next Financial Crisis [View article]
The level of QE Japan is doing now is unprecedented even by US standards - it's a slightly lower dollar amount per month than us, even though their economy is 3X smaller. This is a really significant difference (The russians say "Quantity has a quality all its own")
At the end of the day, the US is not past the point of no return, but Japan is.
In Summary, The Tesla Model S Is A Dirty Car [View article]
Toyota (TM) wants regulators in the U.S. to approve a new headlight that can detect other cars and automatically dim a vehicle's high beam momentarily as it shines into a passing car. The technology is a nifty selling feature for the company in Europe and Japan, but is banned in the U.S. [View news story]
Chinese industrial output growth printed at 9.3% in April, up from a seven-month low of 8.9% in March but still a whisker below economists' expectations of 9.4%. Investors were watching the data closely for signs of weakness after last week's trade data aroused suspicion for being too good to be true. Traders also got a read on the Chinese consumer as the National Bureau of Statistics said retail sales in the country grew 12.8% last month, matching forecasts. Despite the news, consumer discretionary stocks fell. Ultimately, investors once again come away with mixed feelings regarding the state of the Chinese economy. [View news story]
Wild Market Moves In Japan [View article]
Nothing lasts forever.
Wild Market Moves In Japan [View article]
The Japanese yen, on the other hand, is finished. They are willing to trash it in order to keep yields on their bonds low and keep deficit spending.