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JOHN's avatar

The question for me is if the yen starts going up, will that put a stop to the bull market on the Japanese stock market. If yes, then the two would cancel each other out for a UK investor. If no, then a double whammy and so load up the truck.

Any views on here?

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Dominic Frisby's avatar

I think this may be a secular bull market in Japanese stocks, but a rush to unwind the carry trade may mean broader market panic, in which case Jap stocks would be vulnerable

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Helen Limb's avatar

Fantastic ‘gold’ show in Thursday. Loved the little nuggets like the Wizard of Oz analogy. Also loved the little 60-seater theatre at The Museum of Comedy - what a little gem in the heart of Bloomsbury.

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Dominic Frisby's avatar

Thanks so much Helen. 75 seater! it is a little gem though

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Jimbo's avatar

Hey Dominic,

I can offer you some informed opinion on the Yen from Ruffer, who are very much long and strong:

https://www.ruffer.co.uk/en/thinking/articles/investment-review/2023-q3-investment-review

Not sure how well-qualified this is as "Yen Material", but they pulled this trade off before in 2008 and offer some good rationale behind their reasons. It will certainly erase the last year of poor performance that RICA has suffered, should the current setup play out in the near future.

Cheers.

Jimbo

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Dominic Frisby's avatar

Thanks Jimbo. That's interesting

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Jimbo's avatar

Looks like Christophe Ollari - with a solid macro head on his shoulders - is thinking the same way as Ruffer. 25:42 in the following RV video covers his thoughts on the Yen:

https://youtu.be/P7M2DgSfDgk?feature=shared

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