Adidas Impacted by Currency Headwinds
"Shares fell as much as about 5 and a half percent this morning and they\'re down about 20 percent year to date. Adidas had its third quarter results where revenue came in slightly shy of estimates, weighed down by foreign exchange movements that proved to be a large headwind. Even though the market reacted negatively, Adidas raised its operating profit forecast, citing brand momentum, which was already expected by analysts."
Adidas is experiencing selling pressure largely driven by significant currency headwinds affecting its quarterly revenue, despite a positive revision in operating profit guidance based on brand momentum. The earnings news is already largely priced in, leaving little room for a market turnaround in the short term.
Buy Yen ETF (FXY) Amid Weak Dollar
"…that if you’re looking for a place to go to make money and also be in one of the few areas that probably would go up in an intense riskoff period, I think that’s the yen. You can buy the FXY."
The speaker highlights deteriorating fundamentals in the US dollar relative to other currencies and recommends buying the yen through the FXY ETF as a hedge and opportunity to profit from a potential devaluation.
Buy the Yen ETF (FXY) as a Hedge Against Dollar Weakness
"I just say buy the yen. And you can do it very easily if you're saying, well, I don't know how to do that. You can buy the FXY, which is the yen ETF."
David Hay indicates that the US dollar is breaching key support levels and remains overvalued, suggesting that investors should consider buying the yen, preferably via the FXY ETF. He draws on historical precedents, such as the Plaza Accord, to support the notion that a significant devaluation of the dollar relative to the yen could occur, making the yen an attractive trade in risk-off scenarios.