{"id":20148,"date":"2011-03-15T22:54:29","date_gmt":"2011-03-16T02:54:29","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=20148"},"modified":"2011-03-15T22:54:29","modified_gmt":"2011-03-16T02:54:29","slug":"what-investments-will-be-affected-by-the-tragedy-in-japan","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/03\/15\/what-investments-will-be-affected-by-the-tragedy-in-japan\/","title":{"rendered":"What Investments Will Be Affected by the Tragedy in Japan?"},"content":{"rendered":"

By Jared Levy, Editor, Smart Investing Daily, taipanpublishinggroup.com<\/strong><\/span><\/a><\/p>\n

First and foremost, we at Taipan offer our thoughts and prayers to everyone who has been affected by the recent events that have struck Japan. As a trader or investor, as awkward and sometimes morbid as it may be, you must think about how your investment portfolio will be affected by a natural disaster such as this.<\/p>\n

Given the enormity, severity and far-reaching ramifications of an event like we have seen, finding an investment angle can be a daunting task.<\/p>\n

It helps to make a list of possible sectors, stocks and currencies that may be vulnerable, along with a basic thesis for each before you think about investing any cash or adjusting positions in your portfolio. Furthermore, you should understand how each investment is linked to the Japanese economy<\/a> and\/or the after effects of the disaster.<\/p>\n

A good friend and fellow trader, Jeff Tomasulo, was kind enough to send me a list he compiled of the companies, ETFs<\/a> and currency funds that may be correlated directly or indirectly to the disaster. He also gave me permission to share this list with you. I’ve narrowed it down to key companies and investments (because with a tragedy as big as what’s unfolding in Japan can affect huge numbers of investments) and offered commentary to help rationalize each sector for you.<\/p>\n

Japanese ETFs<\/h3>\n

The following ETFs are traded here in the States and allow you to take bullish or bearish positions in a basket of stocks or currency. The Japanese stock market has been weak, but the yen has been rallying. Investments in either of these ETFs require further research. There are many forces pulling on both the currency and profitability of Japanese companies. Speculating on these types of occurrences requires great skill; use caution.<\/em><\/p>\n