The Yen’s Impact on AFLAC

Here’s an interesting chart I wanted to show you. It shows AFLAC divided by the S&P 500 (in red) along with the yen/dollar (in blue).

The yen line is dollars per yen which is the inverse of how it’s normally discussed. I did this to show the correlation between the two.

Speaking of the correlation, the chart shows that they’re kind of related, but it’s not a very strong relationship.

In particular, the red line has dropped recently, meaning AFL has lagged. Some of this is probably due to the exchange rate, but I suspect that’s not all.

We’ll know more when AFLAC reports this week. I think the negative impact of the yen won’t dampen a solid earnings report.

Posted by on July 24th, 2018 at 3:05 pm


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