Talking Numbers

Avoid These Three Stocks on Japan, Says Expert

Talking Numbers

As the Japanese markets take a hit overnight, two analysts tell us what’s in store for Japan and what to avoid in these times.

Kathy Lien, Managing Director of FX Strategy for BK Asset Management (aka “Mrs. Yen”), spoke with Talking Numbers today about the strengthening yen against the dollar. Though US interest rates went up, the fall of the Nikkei and the Japanese selling of foreign bonds have contributed to the rise in the yen.

Enis Taner, Global Macro Strategist with RiskReversal.com and Talking Numbers contributor, has his list of which stocks you should stay away from as the markets in Japan tank and the yen rises. They are:

  1. One of the most popular ETFs in 2013. It has gone up 70% this year with the Japanese rally and a received lot of infows because of it.
  2. A car manufacturer that had a major advantage over the past year in the US and Europe due to yen weakness. With the yen now up 1.5% today, they may lose that advantage.
  3. An American life insurance company with almost 80% of its revenues from Japan.

To hear which stocks Taner thinks you should run from, watch the video above.

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