How to Play the Impending Yen Depreciation
Last week, I wrote about the the incoming Japanese government and its plans to force the Bank of Japan to directly monetize the issuance of new Japanese Government Bonds (JGBs). Regardless of whether the government actually succeeds in this, it is beginning to become clear that the BOJ is responding to political pressure that's demanding it stimulate the economy with much more aggressive monetary measures.
If the BOJ does implement this strategy, it will essentially and in actuality adopt the nominal gross domestic product (NGDP) targeting system of monetary policy. Over the past few years, this has been widely discussed as a potential route for the U.S. Federal Reserve and for the European Central Bank, as well....377 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.