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What have the Japanese been Buying ?
With the balance of payments data released early today, Japan also reported a country breakdown of its portfolio investment flows. Japanese investors stepped up their capital outflows in October to JPY1.324 trillion or about $13.3 bln from JPY952 bln in September.
Recall that, confounding expectations, Japanese investors were net sellers of foreign assets from January through June. They repatriated roughly $150 bln. In four months for which there is now data, Japanese investors have bought almost $55 bln of foreign stocks and bonds.
Japanese investors bought JPY1.452 trillion of foreign bonds in October after JPY1.385 trillion in September. Although the amount was broadly similar, the composition was radically different.
In September, Japanese investors were large new buyers of US bonds and net sellers of rest of the world's bonds. In October, Japanese investors bought JPY148 bln US bonds compared with JPY1.732 trillion. Japanese investors doubled the amount of French bonds they bought (JPY239 bln) in October, over September (JPY117 bln). Japanese investors also bought JPY65.3 bln of Italian bonds, the most since June 2011. Overall, they bought JPY463.8 bln euro-denominated bonds.
Japanese investors also scooped up bonds from the dollar-bloc. They bought JPY130 bln of Australian government bonds and JPY189.2 bln over all, the most since June 2012 and is only the second month of net purchases since Nov 2012. Japanese investors purchased almost five times more Canadian bonds in Oct (JPY108 bln) than in September (a little less than JPY23 bln).
Another noteworthy development was that Japanese investors sold JPY36.1 bln of Singapore bonds. This may not seem like a larger amount, but it is the largest sell-off since 1998. We don't see a fundamental change in the macro outlook for Singapore and suspect it may be a function of the low rates. Yields out to five years are less than 1%. The Singapore dollar has lost about 2.2%, though it did gain about 1.3% against the US dollar in October after a 1.5% rise in September.
Turning to equities, Japanese investors sold almost JPY198 bln in October. Except for a minor JPY4.6 bln purchase in August, Japanese investors have been consistent sellers of foreign shares since July 2012. Over this time they have sold about JPY7.256 trillion (~$73 bln) of foreign shares.
US shares accounted for the bulk of the selling. Over the 16-month period, Japanese investors sold JPY4.170 trillion US shares. In October, US share sales were JPY138 bln (of the JPY198 overall net sales). In September Japanese investors sold almost JPY254 bln, of which the US accounted for a little more than JPY177 bln.
Japanese sales of European shares slowed, and there does appear to be a gradual shift toward booking purchases of euro area shares in Luxembourg. According to MOF data, Japanese investors bought JPY44 bln of Luxembourg shares after JPY21 bln of purchases in September. Over the 16-month period of selling, Japanese investors bought about JPy468 bln of "Luxembourg" shares, which as we say, likely reflects an account function and is better understood as a proxy for euro-denominated shares.
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This is why we are not going to recover - even after the collapse - the world as you know it - is over... (I hold a fair bit of gold but when I read this analysis --- I am not sure that will be of much use)
http://ourfiniteworld.com/2013/12/06/diminishing-returns-energy-return-on-energy-invested-and-collapse/#more-38630
http://ourfiniteworld.com/2013/10/14/two-views-of-our-current-economic-and-energy-crisis/
Good stuff for passing along, thanks!
my source from the street says biticoins, pokemons, and black hair dye
damn french and us bonds ? the JGB wasn't crappy enought ?
Geiger Counters should be high on the list...
They've been buying 1-way air tickets outta there!
This is making me nervous, I heard they knew what they were doing. Ok, I have some US Treasuries and if they want them I will sell, but only for gold.
Pb jockstraps
exactly, protect the gonads from radiation!
Japan been buying a bunch of bullshite from their Big Gov
let's think for a moment if that's true... (first came to mind who has the tech to bring on subsequesnt EQ+Tsunami...hummmm)!
so what is next?
war? with obviously not where the money re-invested in...
no gold (and you know who's buying heavy) then what's the play (emphasis here) for gold (and factor in bitcoin)?
The bigQ is do they really really know?
Japanese loading up on quality Greek dept lol!
If they had a lick of sense they would be buying Gold.
Effective shield against radiation?
Au is one of the best radiation shields. That is likely why gold was for the gods, silver for man. The gods had lots of exposure to radiation, as they zoomed to and fro heaven.
Stack On
From the title I thought this was going to be about radiation suits and geiger counters
My thoughts exactly.
If I were Japanese, I would be looking for real estate in the southern hemisphere.
Hold the radiation Garcon, we have already been served.
They are not very adaptable to different environments and cultures.
That's a fascinating statement, Alt, and I want to say something witty in response. But I can't. You've stumbled upon a Great Truth.
Doing without a clean marine ecosystem-- I'm long US Pork...
"I'm long US Pork"
Is there really such a thing as "US pork" now (that Smithfield sold to China)? </part sarc>