Japanese Yen Denominated Government Bonds Sail into Uncharted Territory as China Central Bank Buys Gold: Experienced Portfolio Manager Tom Weary Sees Greater Investment Uncertainty for Near Term

Wall Street Transcript

67 WALL STREET, New York - April 8, 2013 - The Wall Street Transcript has just published its Investing in Gold and Value for Downside Protection Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Value Investing - Long-Term Investing - High Quality Companies - Global Investing - Investment Strategies - Large Cap Investing - Longer-Term Investing - High Quality Companies - Investing in Gold - Long-Term Value Conservation - Precious Metals

Companies include: Asset Allocation Investment Advisory

In the following excerpt from the Investing in Gold and Value for Downside Protection Report, an experienced asset manager discusses his investment philosophy and market outlook:

...The Japanese have now embarked on a program of devaluing the yen in order to create some inflation. They're tired of 20 years of deflation and stagnant nominal GDP. But careful what you wish for. They may trigger a debt bomb. They have been able to finance themselves even at a 240% debt-to-GDP ratio, but demographically, they've turned the corner now. Their population is shrinking, and they have aged to the point where there is no longer going to be an internal demand for Japanese government bonds. They are going to be liquidating them, and if they go to the global markets they are not going to be able to finance themselves at 80 basis points.

The world financial markets are going to want 200, 300, 400 basis points. Japan will be bankrupt. They are already running a fiscal deficit and a trade deficit, and they're going to find out the downside of the cheap yen. While a cheaper yen makes the Lexus more affordable abroad, the Japanese import 95% of their energy and will have to pay for it with a devalued yen. They've made it worse by shutting down their nuclear industry after the Fukushima incident.

We don't think the coast is clear yet. There are a lot of things that could go wrong, and the gold position is in portfolios just in case things do go terribly wrong.

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For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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