I think there are a couple ways to look at it.

1) On the one hand, I agree with you. Anyone who can afford a Grand Seiko isn’t likely to be too concerned about the watch costing $100 more now than it did a couple months ago.

2) On the other, I’m sure those with substantial holdings of Japanese yen won’t sneeze at that 4% you mentioned. Let’s see what happens when September’s job numbers come out this week.

Actually, I’m more interested in marketing than in markets. Although the theme of this article is the falling dollar and the possibility of a US economic recession, the substance is information about how Grand Seikos are marketed in Japan. Every good story needs a hook, and a historical moment like the dollar’s current woes makes for a topical angle.

Thanks for your comments.

Regards,

Bryan

• I learned today that in currency markets, the dollar is compared against “six primary peers.” Measured against this group, the dollar is really down, and falling. Apparently, the market doesn’t think the US dollar is a good investment right now. You can learn more here.

• An old saying in Japan went, “When America sneezes, Japan catches a cold.” An interesting article says Japan’s economy will, apparently, not be impacted too negatively by a U.S. recession. Click here.

The yen was at 122 to the dollar in July, so the decline in the dollar’s value against the yen is real. The dollar is not at historic lows against the yen — in ‘05 the yen nearly strengthened to 100 to 1; in the late ’90s I remember the yen was, for a short time, under 90 against the dollar! I believe Washington and Tokyo like the exchange rate around 120 to 1, so 115 isn’t too bad. But the trend is downward.

It’s troubling for US consumers to see the greenback weaken against the world’s major currencies. The big fear is this is just the beginning, but nobody knows for sure what’s gonna happen next . . .

You can read more about dollar-yen concerns here.

Regards,

Bryan