Email of the day (2)
Comment of the Day

March 18 2010

Commentary by David Fuller

Email of the day (2)

On Japan
"Still getting great value from you. No link to Riverfront letter mentioned today. On Japan and your comments on currency I understand the Neptune Japan OEIC is hedged against yen devaluation and invested heavily in exporters."

David Fuller's view Thanks for the inspirational feedback. Apologies to all for that missing link, which was established this morning when the mistake was discovered.

The Neptune Japan Fund is listed in the Library and thanks for the additional information. My only reservation remains the yen because I do think it needs to weaken against the USD, which on the current pegging would also mean that it was weakening against the yuan. The yen also needs to weaken against the Korean won in order to jumpstart Japan's economy. As I see it, a weaker yen would boost export sales and earnings, improving confidence, which would eventually lead to increased consumer spending. All this would be reflected by an improved stock market performance for Japan. I think this will happen and hopefully not in the too distant future.

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