Name These Two Markets
The following two charts represent the equity market performance of two rather well known nations in the last 6 months or so. One is a country on the verge of cataclysmic currency devaluation and the other is in the middle of a catalcysmic currency devaluation. Of course, both would be at the top of every CNBC talking head's list of buys since performance has been so great - so which would you prefer? As we celebrate USDJPY 100, Nikkei 14,500, and whatever else it is that we should be celebrating about the surging input costs for Japanese businesses - the lesson is clear for those who want to send their market soaring - crash your economy.
P.S. based on Bloomberg's latest data, the Nikkei is opening at a P/E around 29x - that is all.