A Yen for a Crash

he “talking heads” on the business TV channels’ are apoplectic today in respect of the Japanese Yen strength, struggling to explain why it is happening, when Abe-nomics suggests otherwise, and what does it mean for Japanese stocks, commodities, the carry-trade and the wider-world in general.

Regular followers of this column will recall two postings of earlier this year, “A Yen for a loss” from the end of January and a “Yen for Gold” of mid-February. At its simplest these highlighted the increasingly desperate measures by the Central Banks’ in their idiotic attempts to stoke inflation and economic growth via policy tools destined to compound the problems that they presided over in the first place, including the Bank of Japan move towards negative-interest rates. They also observed the close correlation between the Yen, the Nikkei and the fortunes of the $Gold price.

This relationship is updated in the chart below:

7 April 2016 blog

Keeping it short and simple: Stronger Yen = Lower Stocks & Higher Gold

So there you have it……nearly that is, but what about the title, “A Yen for a Crash?

Earlier musings also identified the relationship between the Yen and Wall St.











2 responses to this post.

  1. […] via “A Yen for a Loss” penned in January, “A Yen for Gold” in February, moving on to, “A Yen for a Crash” earlier this month, which summarised as […]


  2. […] April 2016 overview, “A Yen for a Crash” made the following […]


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