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Japan’s incoming Prime Minister Shinzo Abe has promised inflationary, yen devaluing policies in an effort to boost the economy.This has analysts everywhere slashing their targets for the Japanese yen.
However, one of the bigger yen bears is John Mauldin, who has been negative on the currency for years.
In a new interview with Eric King of King World News, Mauldin reiterates his call that the yen goes to 300 against the U.S. dollar.
We’ve already watched the yen go from the mid-70s, now it’s mid-80s. It (the yen) waltzed right on through 86. Three years ago, I was on record saying that the yen would eventually go to 100, then 125, then 150, then 200, and then 300. I still think so. In my lifetime, I can remember the yen being over 300. It went all the way down to 75, which is a long trip.
The yen is going to make a reverse, and it’s not going to take 40 years. It’s going to take this decade. And that’s a monster potential macro-trade. It’s time to start putting that (trade) on. It’s time to start thinking about how their bonds are going to react, and how their stock markets are going to react. I think it’s going to be one of the great macro-trades of my lifetime.
Mauldin, who is also a gold bull, thinks that the Japanese should be buying gold with their yen.
Read more at KingWorldNews.com.