Rising Yen Seen as Biggest Risk Confronting U.S. Stocks
The biggest risk facing U.S. stocks is the Japanese yen’s increase in value against the dollar, according to Gina Martin Adams, a strategist at Wells Fargo Securities LLC. The currency’s strength is an indicator of “the persistence of deflationary fears and the diminishing confidence investors have in central-bank capability to re-inflate the struggling global economy,” she wrote in a report Monday. The U.S. currency dropped 11 percent against the yen for the year through Wednesday, while the S&P 500 Index rose 0.4 percent.