One argument against the negative bias (for Japanese companies) of a strong yen goes something like this: a stronger yen reduces the impact of high commodity prices, such as oil, which particularly helps the likes of consumers and smaller companies. I said as much, stating the obvious, last November (see here). At that time, Chief […]

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The Nikkei 225 has been a marked laggard compared to regional and global benchmarks over the past year. To make matters worse, the Nikkei fails to sustain rallies and faces ongoing sell pressure resulting in new multi-year lows of late (now at 2 years and 7 months). As of Friday’s (3/14) close of 12,241, the […]

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Dodge & Cox doesn’t comment on the yen — although a trio of its picks (Sony, Hitachi and Matsushita) largely helped it beat the MSCI EAFE-Japan — but says the following on its Dodge & Cox International Stock Fund (DODFX: 40.21 -1.35%) fact sheet for the quarter-ended Dec. 31, 2007:
As certain currencies have risen relative […]

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In a Wednesday article entitled, “Strong Yen Weakens Export Pillar,” The Wall Street Journal quotes Japan’s chief cabinet secretary Nobutaka Machimura, who on Monday commented that it is “wrong to think that a high yen is something bad for the Japanese economy.” One obvious benefit is a stronger yen reduces the impact of high commodity […]

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For those interested in better understanding the yen carry trade, please take a look at a recent short essay we published on our main website (see item #4), entitled “The Yen Carry Trade Explained”, or see below.
Intro excerpt:
The yen carry trade is once again a hot topic in financial news, as the U.S. subprime induced […]

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