A stronger Japanese yen against the dollar may prompt Honda Motor (HMC) to shift production of its Fit model from Japan to the U.S. This is mainly because Fit is one of the Honda’s models that attracted attention in the U.S. but are imported from Japan. However, the strengthening of yen against dollar to around 90 is narrowing down the company’s revenues in Japan upon translation.  So far, Honda has focused on regional manufacturing strategy for its vehicles. The company produces about 80% of all the vehicles sold in the U.S. However, the 5-door hatchback Fit – introduced in Japan in 2001 and launched in the U.S. market in 2006 – is manufactured at a facility outside Tokyo.  The model gained huge importance in the U.S. due to its fuel-efficiency (30 mpg). For the first nine months of the year, Fit sales in the U.S. were ...

“Words from the Wise” this week comes to you in a shortened format as I do not have access to my normal research resources while on the road in Europe (also see my post “Gone A.W.O.L. - to Slovenia and Switzerland“). Although very little commentary is provided, a full dose of excerpts from interesting news items and quotes from market commentators is included.

While investors’ hopes of an economic recovery might have got ahead of reality, the cartoonists continually reminded us of worrisome issues …

Source: Signe Wilkinson, Washington Post,  June 18, 2009.

The past week’s performance of the major asset classes is summarized by the chart below - a mixed bag so to speak.

Source: StockCharts.com

A summary of

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