I think in Russell on Russell post I address this issue... in a world that is moving pro-labour, governments actually want a strong currency to boost real wages. Europe, US, China have moved pro-labour, but Japan remains relentless pro-capital, and seems very happy to keep giving japanese workers wages cuts.
So to buy yen (which is very cheap) you need political change from either within or without - that is voters reject abenomics and kuroda, or foreign governments retaliated against Japanese beggar thy neighbour currency policies with tariffs. Sooo... the signpost for political change are there... but I dont think it moves until the politicians commit to it.
Hi Russell. You had previously suggested buy yen/short dollar. What do you think needs to happen to set that trade afoot?
I think in Russell on Russell post I address this issue... in a world that is moving pro-labour, governments actually want a strong currency to boost real wages. Europe, US, China have moved pro-labour, but Japan remains relentless pro-capital, and seems very happy to keep giving japanese workers wages cuts.
So to buy yen (which is very cheap) you need political change from either within or without - that is voters reject abenomics and kuroda, or foreign governments retaliated against Japanese beggar thy neighbour currency policies with tariffs. Sooo... the signpost for political change are there... but I dont think it moves until the politicians commit to it.
What about Japanese equities
Could a final escape from deflation be the catalyst for multiple rerating?
100 percent. If they can get wages.to rise the boom should be immense...