Friday, June 15, 2012

More Good News: Ex-Soros Adviser Fujimaki Says Japan May Default


When it rains, it pours.  Investors should buy assets in U.S. dollars and other currencies of strong developed nations because Japan may default within five years, Takeshi Fujimaki, former adviser to billionaire investor George Soros, told Bloomberg.

“Japan is likely to default before Europe does, which could be in the next five years,” the president of Fujimaki Japan, an investment advising company in Tokyo, said in an interview yesterday. Japanese should hold foreign-currency products, such as those denominated in the greenback, Swiss franc, sterling, Australian and Canadian dollars, Fujimaki said.

Should the Japanese government default, the yen may weaken to 400-500 per dollar, and the yields on benchmark 10-year bonds could surge above 80 percent, according to Fujimaki. “I’m buying dollars in case of an emergency,” he said.

No comments:

Post a Comment