I was in Tampa last week meeting with Harry, Rodney and the team. We were doing some long-range planning and discussing the launch of my new trading service, Cycle 9 Alert, which we’re putting the final touches on.
In the midst of our meetings, Harry and I glanced at our phones… and then each other…. then back at our phones. The expression, clear as day, on both our faces was something like: “Seriously?”
A few seconds later Harry interrupted the meeting using a few colorful expletives to announce that Japan was going to stimulate its economy with a massive $145 billion a month!
That’s more than 3.5 times the amount we’re pumping in (we’re at $40 billion a month) and Japan’s economy is only one-third the size of ours. That’s ludicrous!
As far as we’re concerned, this is proof-positive that Japan is 100% committed to gutting the yen. They’ll spend as much as they have to. They’ll take no prisoners. And in the end, the yen will be worthless relative to other currencies.
But hey… we were convinced of this intention last summer already. On July 27, 2012 I recommended to Boom & Bust subscribers a trade that would take advantage of the yen’s spiral downward.
I have to say, it doesn’t always work out so well, but this was one of those recommendations where we got in at the perfect time. Here’s a chart of the USD/JPY, with a green arrow showing the date that Boom & Bust subscribers anted up their bets against the yen.
The investment I recommended to Boom & Bust subscribers in late July is now handing us gains of 32%!
And the yen’s fall will continue… but if you’re just now looking to get short the yen, today is not the day. This trend is a bit overextended and I suspect we’ll see a pullback in the coming weeks.