Today's BONDS!

I think Gross believes that inflation is going to be an issue. If you read his December letter (on PIMCO's website), that's the gist of it...

He's favoring asset classes that will benefit from inflation such as commodities and real estate....
 
Bond traders are from Missouri at this point. Show us some inflation after all these years of crying wolf and we'll sell Bonds. Otherwise, from a valuation perspective we'd rather short Japanese rates, they are imputing below 1% for many, many years out on the curve. Basically Nikkei has rallied 4,000 points from the low and Jap. rates have stayed almost exactly the same all the way out the yield curve at below 1%. Strange but true...
 
IMO Japanese equities are going to have a big advance over the next few years. I think 15,000 in the Nikkei in the next 18 months, and 20,000 longer-term, are quite achievable (mid and small caps could do even better). JGB yields I reckon will go to at least 3% if not higher over the same period. And I think the Yen has a good shot at entering the 90s or even the 80s during the same timeframe.

The Japanese long stocks/long yen/short bonds Texas hedge is IMO one of the best long-term opportunities available in the markets.
 
Quote from Cutten:

IMO Japanese equities are going to have a big advance over the next few years. I think 15,000 in the Nikkei in the next 18 months, and 20,000 longer-term, are quite achievable (mid and small caps could do even better). JGB yields I reckon will go to at least 3% if not higher over the same period. And I think the Yen has a good shot at entering the 90s or even the 80s during the same timeframe.

The Japanese long stocks/long yen/short bonds Texas hedge is IMO one of the best long-term opportunities available in the markets.
More...

I would be interested in what fundamentals you favor that support your view. The Japanese have had over 10 years to get their banking fiasco fixed and to washout all those ill advised real estate deals of the 80s. To a large extent, we could say that is behind them now. But where will growth come from in the next decade? They are already strong in autos and electronics and they are still largely reliant on imports for raw materials (more expensive commodities). On balance, I would agree with you, but I am not sure how strongly I can agree with you. - RCM
 
Looks like this is the move up to 114.08 wave-count wise.

Nice support down at 111.27 yesterday, and a good push up into the close yesterday as well, now continuing higher, printing 112.30 as we speak!
 
You must log in or register to reply here.
Back
Top