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Strategies & Market Trends : World Outlook -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (8443)	7/6/2007 3:48:14 PM
From: Wyätt Gwyön	Respond to of 50873

that theory makes total sense to me. i've drunk the JPY Kool-Aid :) i think the fall in the JPY has been severe enough to curtail demand for USD-based consumables and services (like tourism). in particular i like this part: Indeed, in the event of a sharp sell-off in risk assets -- which can consist of anything from Shanghai A shares to junk bonds -- the yen could assume the traditional role of gold. As speculators scramble to repay yen loans, they may sell gold instead of buying it (as they usually do in times of market turbulence) to buy back yen.