Wednesday, March 22, 2017

Bullish Japanese stocks but hedged against the Yen

We are bullish of Japanese shares and have an initial position in place long of the Japanese stocks via ETFs here in the US, but we wish only to be long of those ETFs that hedge away our exposure to a weaker Japanese Yen.

Our preferred position then is in DXJ:Wisdom Tree’s currency hedged Japanese ETF. Further, it is our intention to add to this position but not until such time as the “spot” Nikkei closes “materially” above 16,600.