How significant is the changing of the guard in Japan, where Hirohisa Fujii has just resigned, and been replaced by Naoto Kan?
Joshua Brown at The Reformed Broker argues that it's very important.
Why? Because Kan appears serious about weakening the yen, and inducing the kind of weak-currency led rally that we've seen in the US.
Upon taking office, the strong Yen was one of the first things he addressed: "There are a lot of voices in the business world saying that the dollar around Y95 is appropriate in terms of trade...in cooperation with the Bank of Japan, I will make efforts to...bring the exchange rate to appropriate levels."
Just a few days into 2010, and the idea that it could be a huge year for Japanese markets is rapidly gaining traction. Byron Wien identified a big year for Japan as one of his surprises. Marc Faber called it the ultimate contrarian bet. The Pragmatic Capitalist also gave four reasons why it offered an excellent contrarian opportunity.
With a new Bernanke-like finance minister in place, it appears the stars are aligning.
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See Also:
- Four Reasons Why Japan Could Be The Mother Of All Contrarian Bets In 2010
- Marc Faber: Avoid The US Disaster, Buy Wheat, Sugar, Natural Gas, And Japan In 2010
- Byron Wien: Here Are Ten Things That Will Surprise You In 2010
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