Chief Market Strategist Says Japan and South Korea Could Be Flashing Early Warning Signs for Investors Quick Read – LRCX pulls 87% of quarterly revenue from Asia-Pacific; ASML supplies Samsung and SK Hynix EUV tools, making both direct KOSPI demand plays. – Qualcomm handset…
venue fell 13% year over year on memory constraints and Chinese OEM softness, with a beta of 1.6 amplifying any macro selloff. – Maley warns crowded CFTC short yen positions could accelerate a selloff if the BOJ intervenes, while a VIX near 16 signals markets are fully complacent. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and ASML didn’t make the cut. Grab the names FREE today
Miller Tabak Chief Market Strategist Matt Maley believes investors should keep a close eye on two often-overlooked warning signs: the Japanese yen and South Korea’s KOSPI index. During CNBC’s Morning Call Sheet yesterday, he argued that a reversal in the popular yen carry trade and continued weakness in Korean stocks could signal broader trouble for global markets. For investors with exposure to semiconductor equipment and chip stocks, those signals could prove especially important, as many of the industry’s largest customers are concentrated in Asia.
Why a Japanese Yen Reversal Could Rattle Global Markets Maley pointed to crowded positioning against the Japanese yen as a potential accelerant if the Bank of Japan is forced to defend its currency. “There’s some speculation that the BOJ will have to come in at some point and defend their currency. And we certainly know from the CFTC data that the short position in the yen is very, very large. So a lot of people are on one side of the boat.