12/18/11

As sick as it sounds, I've been waiting for an event like this to blog.

This announcement seems unprecendented and its big enough to be able to make a profitable financial play.

Here are my thoughts:

While this might bring joy and relief tonight, tomorrow morning the feeling is going to turn into uncertainty. We all know uncertainty brings volatility so what can we do?

I predict the following:

- Shock depreciation of the Korean Won against the USD
- Depreciation of the Yen against the USD
- Selloff of Korean sov and corps, leading to a rise in korean rates.
-Widening of the long-short spread of Korean won denominated bonds

So if my predictions pan out, would this be the play?

- Short won/long usd
- Borrow in Korea, lend in USA/Canada/Swiss

Can't think of other plays

What can you come up with monkeys? What is your financial play based on these news?

Comments (15)

12/18/11

Similar to Osama, could see a rise to bullish views. Sell the strength, sell the news.

North Korea was nothing, does not make europe able to restructure their debt any easier.

12/18/11

short hennessy

12/18/11
whatwhatwhat:

short hennessy

This.

12/19/11
whatwhatwhat:

short hennessy

lol

Long ...everything else?

Get busy living

12/19/11
whatwhatwhat:

short hennessy

Haha I second this, great call.

12/18/11

Moody's just released a report, stating that there will be no "imminent" change on Korea's credit rating.

12/18/11

just get long the USD for a few days and go short LVMH as global cognac sales are going to pip down a few %.

12/18/11

Get on the other side of anyone trading thinking that North Korea matters.

12/18/11

Kim Jong-un, his tubby son, is going to fill the void. I wonder if he's going to take a new line or stay on the old retarded one.

12/19/11

uhh theres no play on this.........north korea is a state in complete isolation

12/19/11

Short KRW/USD
Short JPY/USD
Short AUD/USD and NZD/USD

12/19/11

thoughts on whether i will get killed when im out tonight with a bunch of koreans drinking hennessy giving shoutouts to the fallen leader

12/19/11

Buy fish oil.

12/19/11

short elevator shoes and swedish hookers

12/21/11

More is good, all is better

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