NEW YORK ( TheStreet) -- The yen may strengthen as investors begin to show equity market anxiety.
In previous articles, I have written about the increasing strength of gold and bonds, hinting it may signal waning equity market sentiment. A crash may not be in the picture due to downside protection provided by the Federal Reserve, but on the daily charts, assets traditionally bid higher during times of fear are beginning to receive that bid.
As investors focus on U.S. earnings as opposed to government rhetoric, mixed results are causing equities to be less attractive. For instance, Caterpillar's (CAT - Get Report) earnings report, released Wednesday, was below expectations, sending a negative signal to global markets. The maker of industrial equipment is as a proxy for global growth. Its disappointing third-quarter results and outlook provided negative sentiment for the fourth quarter.
The chart below is of USD/JPY currency pair. An exchange-traded fund that tracks the Japanese currency is CurrencyShares Japanese Yen Trust (FXY).Follow @AndrewSachais This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts