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Japan Shock: Is the Hara-kiri of the Yen, the Rising Sun for the Export Majors & Nikkei new highs?
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Debt weakness with super low rates and artificially upholding the value of the debt markets mean that the Yen is destined to decline against other nation currencies where rate hikes have taken place. As a result, the Yen could be seen as a perpetual short, including against other weaker currencies such as the euro and the dollar. All are compromised, but not as much as the Yen with its 300% GDP debt. Japanese export majors that have more of a market internationally than domestically, such as Toyota, Honda, Fujitsu and many others are doing very well as a currency hedge to a collapsing Yen. Possible new highs on the Nikkei with the tailwind of a weakening currency and high quality big market share, international, industrial exporter companies to do well.
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