Once the Bank of Japan raises interest rates in June, it will not only increase borrowing costs but also trigger a violent rebound in the yen exchange rate...

For those with leveraged positions, this double blow (exchange rate losses + rising interest rates) will force them to sell their most liquid assets~
Warren Buffett is waiting for the end of an "absurd price," and the Bank of Japan might be helping him flip that switch...
At the same time, Buffett has already hedged his Japanese assets and liabilities~
He has bottomed out in Japanese industrials like the five major trading companies. These companies are undervalued, with stable cash flows, making them typical defensive assets~
On the liability side, Berkshire has issued a large amount of yen-denominated debt~
If the yen reverses and appreciates, Buffett will become one of the biggest beneficiaries~
#日央行加息 #Warren Buffett #套利交易 #U.S. stock deleveraging