Gavekal Capital: Yen Shorts Watch Out - Positioning and Sentiment as Extreme as it Gets

Wednesday, January 8, 2014

Yen Shorts Watch Out - Positioning and Sentiment as Extreme as it Gets

With Fed tapering now a reality, it would seem the path of least resistance for the yen is down. It appears though from looking at trader positioning and public opinion sentiment that this thesis is now common knowledge. Indeed, speculators are as short the yen as they have ever been and public opinion is trying to crack new lows. Readings this extreme often coincide with near term rallies in the currency.

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Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
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