The Big Picture: Yen Support in Focus

• US and Japan coordinate first Yen intervention since 1998 to support the Yen, which reached a 40-year low.
• Currency interventions typically require policy changes for sustained impact, but joint action increases 'firepower' and could provide a near-term floor for the Yen.
• Concerns about high expectations and potential competition from Chinese models and hardware makers contributing to volatility in AI-related tech stocks.
• Recommendation for investors to stay fully invested but diversify portfolios to include less correlated assets like equal-weight indexes, healthcare, financials, or quality/yield factors.

The discussion focuses on the first joint US-Japan Yen intervention since 1998, driven by the Yen's 40-year low, and its potential impact on currency and bond markets. It also examines recent volatility in AI-related tech stocks, citing high expectations, potential competition from China, and questions about ROI. Investors are advised to stay fully invested but diversify away from concentrated AI themes.