This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

G7 Gives Bank of Japan Stimulus the Green Light

Stocks in this article: FXY YCL YCS HMC SNE TM

Additional areas of discussion came with the need for governments to place fewer austerity requirements in debt-troubled areas. These proposals were met with resistance from Canada, the United Kingdom and Germany, while the U.S., France, and Italy saw these ideas as favorable.

Member countries arguing for reduced austerity requirements have suggested that a slower pace in budget cuts will enhance flexibility and help restore fiscal order in troubled areas. With the depth of these discussions, it is clear that the G7 has placed its focus on bigger picture issues and that there is no perceived need to verbally influence Japan to alter its currency-weakening stimulus plans.

Opportunities for Investors

When looking at Japan's planned programs and their implicit approval by global banking bodies, there are ways for investors to benefit from long term movements likely to follow as a result of expected currency changes.

Specifically, this means selling assets that are denominated in Japanese yen. Continued weakness in the yen is expected for the long term, largely propelled by Japanese investors moving out of their domestic currency and into foreign bonds with higher yields.

These activities will drive up currency pairs like the USD/JPY, and put selling pressure on yen ETFs like the CurrencyShares Japanese Yen Trust (FXY), ProShares Ultra Yen ETF (YCL) and the Proshares Trust II (YCS).

For investors focused on stocks, Japanese export companies should be an area of interest. The fast-weakening yen improves earnings prospects for companies like Toyota Motors (TM), Sony (SNE) and Honda (HMC). Some of this upside activity has already been seen in Panasonic (the second largest TV manufacturer in Japan), which rallied strongly after releasing forecasts showing the company expects to return to profitability in 2013.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs