This page has been archived and commenting is disabled.

Name These Two Markets

Submitted by Tyler Durden on 05/09/2013 20:02 -0400

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.

Charts: Bloomberg

- advertisements -

Thu, 05/09/2013 - 20:04 | 3546604 Lost Wages

The Omega Markets.

Thu, 05/09/2013 - 20:12 | 3546622 zorba THE GREEK

We can eliminate the gold market to start. The Greek Bond markets?

Fri, 05/10/2013 - 07:34 | 3547631 Vampyroteuthis ...

In both cases, fraud driven markets.

Thu, 05/09/2013 - 20:07 | 3546609 B2u

Spain and Greece?

Thu, 05/09/2013 - 20:09 | 3546613 venturen

Number of bankers the devil controls?

Thu, 05/09/2013 - 20:24 | 3546648 ApollyonDestroy

The first is Japan, and the second is us the united states of shitheads. No? Is this rhetorical? Today has been such a long day

Thu, 05/09/2013 - 20:25 | 3546652 100pcDredge

And ehm... name this 'market' as well: http://www.stubbornmule.net/blog/wp-content/btc2.png without cheating.

Thu, 05/09/2013 - 20:26 | 3546655 q99x2

Pittsburgh and Azerbaijan

Thu, 05/09/2013 - 20:26 | 3546657 machineh

Nation 1 is Argentina (Merval index).

http://finance.yahoo.com/echarts?s=%5Emerv+Interactive#symbol=%5Emerv;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

Thu, 05/09/2013 - 20:29 | 3546666 machineh

Nation 2 is Japan.

http://finance.yahoo.com/echarts?s=%5EN225+Interactive#symbol=%5EN225;range=1y

Did I win the free lunch with Kurgman?

Thu, 05/09/2013 - 22:31 | 3546960 Capitalist

Krugman orders pizza. Guy asks if he wants it cut into 6 or 8 slices. Krugman says, '8 please. I'm very hungry today.'

Thu, 05/09/2013 - 20:27 | 3546660 Aurora Ex Machina

Aliens are coming in September. No-one important gives a fuck anymore.

Welcome the desert of the real.

Thu, 05/09/2013 - 21:27 | 3546785 UP Forester

Hope the aliens bring their swimsuits, the global coastal event starts before the end of the month....

http://www.youtube.com/watch?v=HDSgWfKvCSU

Thu, 05/09/2013 - 20:28 | 3546662 Jason T

Nation 2 is Japan.. but nation 1 is not argentina nor Slovenia nor cyprus nor Britain.

still searching

Thu, 05/09/2013 - 20:33 | 3546675 Jason T

is Argentina. That Marvel index.

Nation 1 is Argintina

Nation 2 is Japan

Thu, 05/09/2013 - 20:28 | 3546665 rubearish10

Any market except PM's and Miners.

Thu, 05/09/2013 - 20:30 | 3546668 rubearish10

Buying USDJPY is so addictive. Feels like QE, oh wait.....

Thu, 05/09/2013 - 20:39 | 3546684 machineh

Unfortunately one can't trade ARS/USD, except by carrying a wad of fresh hundreds to Buenos Aires.

But here's the chart of the peso's collapse, under Argentina's Peronist flake government:

http://www.ambito.com/economia/mercados/monedas/dolar/

Thu, 05/09/2013 - 20:31 | 3546671 rubearish10

Lastly, JGB's, bah!

Thu, 05/09/2013 - 20:35 | 3546679 Howard Bork

Tyler: Please plot the Nikkei on P/B or EV/EBITDA. Its among the cheapest in the world. P/E looks high only becuase corporations are loaded with cash. But, if you want to promote only a specific agenda feel free to data mine to find the numbers that help your case.

Thu, 05/09/2013 - 21:52 | 3546845 Raynja

all that cash that is worth 30% less now?

Tue, 05/28/2013 - 14:45 | 3546852 Ballin D

Why would you plot an equity index on EV/EBITDA? Id rather see a figure that actually represents the value of equity without the extra noise.

Thu, 05/09/2013 - 20:38 | 3546683 Fuku Ben

Gog and Magog

Fri, 05/10/2013 - 10:25 | 3548153 NoTTD

Winner.

Thu, 05/09/2013 - 21:07 | 3546736 thismarketisrigged

i can tell u what both of these markets have in common.

they are both fucking ponzi schemes, yet they are allowed to continue. fucking criminal

Thu, 05/09/2013 - 22:10 | 3546893 John Law Lives

FUBAR1 and FUBAR2...

Fri, 05/10/2013 - 01:43 | 3547347 q99x2

Meat and Potatoes

Fri, 05/10/2013 - 02:36 | 3547387 polo007

http://www.safehaven.com/article/29772/the-us-indices-the-reality

Since the financial crash of 2008 the western economies (US, Euro zone and Japan) have been using quantitative easing (QE). QE is not new. It was also used extensively in the 1930's. Japan has been using forms of QE for over a decade. But when one looks at the velocity of money and the money multiplier the money is not getting into the broader economy. But it is getting into the stock markets largely through the large money center banks that are the major beneficiaries of QE. Rising stock market valuations help the money center banks balance sheets. It is believed for the US at least that QE is primarily to help prop up the banking systems in the US, the Euro zone and Japan. The banking system remains saddled with huge amounts of debt that is either toxic or uncollectable.

Name These Two Markets

Comment viewing options