Japan has been fortunate over the last couple of decades that its own citizens were the biggest buyers of the country’s own government bonds, but that is about to change.
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New York, NY (PRWEB) March 23, 2012
Currency trading will be a very big part of the markets over the next couple of years, as Japan is about to enter its own credit crisis and this will drive down the yen, according to Sasha Cekerevac, contributor to popular financial newsletter and web site Profit Confidential. In a recent article Cekerevac wrote, titled, Is This Currency About to Crash?, he outlines his rationale for a weaker yen over the next few years.
“Japan has been fortunate over the last couple of decades that its own citizens were the biggest buyers of the country’s own government bonds, but that is about to change,” says Cekerevac. “This is when the situation will get tough for Japan, because that nation has the highest debt load of any developed nation.”
Cekerevac points out that this is in addition to the stated goal of the Bank of Japan and the Japanese government to lower the value of the yen, as the country’s currency strength has hurt exporters.
“This implicit goal will push traders out of the yen, changing the nature of currency trading over the next few years,” says Cekerevac.
While Greece might appear to be a big deal, Cekerevac points out that the nation is tiny compared to Japan. “Greece’s GDP is approximately $305 billion, while Japan’s GDP is just under $5.5 trillion, all in U.S. dollars,” says Cekerevac.
Cekerevac is looking for the yen to continue its weakness over the next few years.
“No one can bail out a giant nation like Japan,” says Cekerevac.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.