Posts Tagged ‘Japan’
Crimea Annexation; the implications for global capital allocation
Around geopolitical events, political posturing is generally the short-term focus for all parties involved, and markets, but the longer-term implications are often unrelated to what is obvious in the short-term. The despotic approach of Vladimir Putin, and his “damn the torpedoes” approach to dealing with market/economic consequences exacerbates this effect. A fascinating take on…
Read MoreWelcome to the World, North Korea – Investment Opportunities Will Eventually Sprout
North Korea has been isolated since the disintegration of the Soviet Union in 1991. Significant amounts of communist aid ceased, and the fall of communism across Eastern Europe ultimately had a profound impact on the Democratic People’s Republic of Korea for the next two decades. North Korea was figuratively and literally off the grid as…
Read MoreFirst the Japanese Yen and then Gold – There is No Safe Haven Currency Panacea
Beware of the one-way, one-speed runaway train! Usually in the normal chain of events the train stops, lets the passengers off, turns around, and starts going the other way. In a rare circumstance, all hell breaks loose and the train can’t be turned around and runs off the track and over the cliff. In the…
Read MoreThe Economic Process of Deleveraging Part Two – Why the US is Well Positioned
The differences between the US situation post-financial crisis and Japan in 1990 are stark. The previous post outlined how extreme things got in Japan and how ahead of itself the Japanese stock market, real estate market and economy got. While Japan was exposed to “extreme extremes” the US economy experienced imbalances that could be worked…
Read MoreThe Economic Process of Deleveraging Part One – What Happened in Japan?
The process of deleveraging has been in place since the onset of global recession and financial crisis in 2008. Many investors and economists have highlighted how long the process can take once it gets going. It’s striking how the theme of deleveraging, broadly speaking, is universally assumed to play out over a very long time.…
Read More2012 Global Investment Themes and Predictions
In 2011, the stock market experienced some dramatic swings, heightened volatility, managed some months of tremendous strength and sickening weakness. After an exhausting ride, the S&P 500 index returned to precisely where it started. For those who appreciate extreme precision, the market was down on the year based on the second decimal point of the…
Read MoreLack of Confidence – A Key Driver of Investment Returns in 2011 – An Opportunity and Risk for 2012
2011 has been a difficult year for most investors. Market sentiment oscillated throughout the year and generating returns has been exceedingly difficult to come by, let alone maintain. The world experienced at least three distinct crisis; Japanese nuclear disaster, Arab Spring, and Sovereign Debt contagion through Europe. All three of these events were enough to…
Read MoreThe Rest of Europe Can’t be German
The EU Summit and ECB meeting which transpired last week are likely to be the final supporting actions by Eurozone officials this year. The tack forward for Europe has been clarified; move ahead with the long and arduous process of fiscal unification, supported by a reactive ECB. The path ensures two outcomes; that there will…
Read MoreYen Intervention Take Three – Reminder That There Are No Safe Haven Currencies
Japanese leaders intervened for the third time this year as JPY strength below 77 yen/usd is clearly constraining a recovery in the world’s third largest economy. Japanese Finance Minister, Jun Azumi, announced a unilateral move with an additional pledge to keep selling in the future. The action took place because Japan believes the yen strength…
Read MoreUniqlo Launches Flagship in New York City – Prospects for the Brand and Fast Retailing (9983.JP)
Uniqlo is the main global brand produced and designed by Japanese parent company Fast Retailing (9983.JP). Uniqlo is an older brand with a domestic focus on market share in Japan. The company has done a great job of growing as a Japanese specialty retailer with its compartmentalized presentations and spartan, clean, and colorful styles. The…
Read MoreOhayou Gozaimasu! Moody’s Downgrades Japan
Moody’s came out today and downgraded Japan’s Sovereign Credit Rating from Aa2 to Aa3 based on the size of its deficit and large buildup of government debt. As a result of this downgrade, a number of Japanese banks and insurance companies will be downgraded by Moody’s as well. This news will make much less of…
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