What's an investor to do to protect his/her self and their family? Well, incredible as it may seem, my good friend Mish Shedlock tells me that there's a great opportunity for those of us living in Japan to capitalize on this uncertainty.
If the yen drops, and, in turn causes a huge rise in stock and precious metals prices, how can those of us living in Japan benefit?
In his blog of Wednesday, Dec. 22, 2010, Mish lays out Ten Economic and Investment Themes for 2011. About Japan, Mish wrote:
In a later article, Mish wrote about an Interactive Map of Global PE and Price to Book Ratios:
Except for Japan with a price-to-book value near one, with most corporate debt wiped off corporate books, I see little "absolute value" elsewhere.
The problem with Japan is the Yen. To invest in Japan one needs to hedge that Yen exposure or a declining Yen could wipe out most equity gains.
Aha! I see. So I can take advantage of the yen's problems because I am living in Japan!