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).
- Toll Free Number:
- Toll Number:
- Conference ID/Password: 13597789
- Materials: CLICK HERE
We look forward to having you join us!
Associate: Macro Team