The global equity markets in the northern hemisphere wilted in the hot August sun. The bears were not in hibernation but foraging on the uncertainties of a global recovery. Risk-off trades were the central theme of the month and the rush to safety was en vogue. The yen and Swiss franc were the strongest currencies of the developed world. The YEN is impacting Japanese growth and it is certainly reflected in the NIKKEI, which was down more than 7 percent for the month. Many commentators still believe that the strong YEN is not that severe a problem for Japan, but as our readers know that is not our view, especially in regards to the EURO. Bloomberg ran a story today about Japanese concerns regarding the failed stimulus plans of Prime Minister Kan. Several of the giant Japanese corporations are openly complaining about the strong YEN and its impact on profits. Canon, Nissan and Panasonic said they would be moving production outside of Japan. Toshiyuki Shiga, Nissan’s chief operating officer, said,” The number one priority is to curb the strengthening yen.”