The Yen as a leading indicator worked well intraday yesterday. I mentioned it possibility yesterday in Watch The Yen, Carry Trade Unwind.
Ever since the Credit Crunch first hit, equities have been extremely sensitive to risk aversion and de-leveraging. The Yen best captures both these elements and captures them quickly.
This relationship was apparent early in the Credit Crunch:
(07/26/07) Yen Advances After Equity Declines Prompt Carry Trade Unwinds
(07/27/07) Bond Risk Soars by Record as Investors Flee Corporate Debt
(07/31/07) The Yen Carry Trade: Will They Put It Back On?
(08/17/07) Bernanke Flinches
This relationship will be most pronounced during times of financial stress and will gradually fade as the great global de-leveraging winds down.
Friday, February 8, 2008
The Yen As A Leading Indicator
Subscribe to:
Post Comments (Atom)
Posts
2 comments:
Superb spot.
I think that the relationship works better than simply using the dollar index.
If you have been having no problems UGG Classic Short in running or racing, it would be hard to recommend a change of shoe. It is difficult, if not impossible to improve Classic Short Boots upon a situation in which all is going great. I would advise getting a few pairs of what seem to be your Classic Short ugg boots favorite shoes before the manufacturer changes the shoe. Historically unannounced changes are often made by manufacturers. This can vary from a subtle change in the cushioning around the heel to a major Classic Short uggs structural midsole change. Manufacturers have discontinued a model of shoe, only to resume production a few years later ugg 5825 with a line of shoes boasting the same name, but with completely different characteristics.
Post a Comment