• HEDGEYE’S MARKET BRIEF
    Our FREE Investing Newsletter
    Get Exclusive Summer Sale Discounts

    By joining our email marketing list you agree to receive marketing emails from Hedgeye. You may unsubscribe at any time by clicking the unsubscribe link in one of the emails. Not available for current subscribers to that product. Use of Hedgeye and any other products available through hedgeye.com are subject to our Terms Of Service and Privacy Policy New users only.

Takeaway: Join us on a conference call today at 1pm to discuss our revised outlook for Japan and the associated investment implications.

The LDP/NKP coalition election victory this weekend has major implications for the global economy and the financial markets that underpin it.  

Please join the Hedgeye Macro Team on a conference call today at 1:00pm EST for an overview of these implications and how we think you should position your portfolio to profit from these macro catalysts.

 

KEY TOPICS WILL INCLUDE 

  • Where we stand vs. consensus RE: Abenomics
  • Our intermediate-term outlook for Japanese monetary and fiscal policy
  • The elevated risk of a global deflationary spiral

In summary, we anticipate ~20% downside in the Japanese yen vis-à-vis the U.S. dollar over the NTM. This compares to -5% and unchanged, respectively, for the Bloomberg consensus EOY '15 forecast and the current 4Q15 USD/JPY forward rate.

A linear regression model based on the trailing 2Y correlation would suggest our forecast of a re-test of the August 1998 highs on the dollar-yen cross implies a level of ~25,300 on the Nikkei 225 Index – or potential upside of +48% from today's closing price! 

If these forecasts sound crazy to you, that's a good thing [to us]. We sounded equally as crazy making a similar call in November 2012 (i.e. before Abe even took office).

Call Today | Abenomics Round II: Risk Is GROSSLY Mispriced - Thinking Through a Potential Currency Crisis In Japan

DIAL-IN INSTRUCTIONS

  • Toll Free Number:
  • Toll Number:
  • Conference ID/Password: 13597789
  • Materials: CLICK HERE

As always, there will be a live Q&A session at the end of the call. Please email to submit a question to the queue.

We look forward to having you join us!

Darius Dale

Associate: Macro Team