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This Won't End Well
With both the Real Estate and Banking equity indices in Japan already in bear markets (down over 20% from recent highs) and the broad indices down over 15%, just how much pain can the massive influx of foreign capital take before the exodus really takes hold. Today's 'news' of the GPIF's allocation shift won't be enough to stem the tide as 'foreigners' (who have flooded on an epic scale into Japanese stocks) step away to the next hot-money focus... this won't end well.
The Real Estate and Banking indices were the best-performing, most hot-money riddled indices and evidence that things are shifting rapidly in Japan...
and with this kind of massive flood of foreign capital into Japanese stocks, we suspect things will not get any better when this chart 'normalizes'...
Charts: Bloomberg and Barclays
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you can blind fold them with dental floss
Oil's well that ends well!
Divergence everywhere.
May 30, 2013, 7:02 a.m. EDT
Ignore the news and buy Japan
"But the important point that this chart should convey is that even though it seems quite bad right now based upon the news coming out of Japan, my suggestion would be to ignore the news, and look to buy this consolidation for another rally back to the highs for a double top, and potentially even as high as the 12.65-12.95 region before wave (3) tops."
http://www.marketwatch.com/story/ignore-the-news-and-buy-japan-2013-05-30
Yes but with headlines like this
"Weak US data run gives stocks a lift"http://finance.yahoo.com/news/weak-us-data-run-gives-143700414.html
This can go forever since warrants data will be getting weaker and weaker hence stocks going higher and higherwhat a world
Smart money Japanese are selling to the dumb money foreigners at the top.
dumbass loundeye investols
Gwilo!
Exactly
RoR!
If only it were so easy to print support for a family of 5, then I'd never have to work.
That's how politicians do it
Ooops!
Here's the numbers from last nights report.
"churning." spreads will widen, trading strategies will become more complex as more information is gathered. At some point you'll see some frontal assaults on Japan Inc itself (the whole Sprint thing looks like a template to me.) while not exactly dismantling ala Russian style does appear to be "making way for new ownership."
I want a world that I can play with.
Nothing "Ends well", that's why it's called "the end".
Oh I don't know about that...Thelma and Louise drove off a cliff and that ended a really painful movie I was forced to sit through and watch. That ended well.
I gotta admit, that's pretty hard to disagree with.
"This won't end well", i continue to read the same words from long time.
Of course, the more time pass the worst it will end, and that's why MAYBE right now it would end soo badly that the world really cannot afford it to happen, therefore i would say:
"This won't end".
Is that "oh Henry" buying them japanese equities
"This won't end well". What has, since we've been reading this phrase? Will not admit PM's have ended well 'cause that's not over. Confidence is high on that.
So, nothing has ended badly. Nothing has ended. When will "it" end? Not in a Central Bank's lifetime, unfortunately.
BTW, very bullish on PM's, so no down arrows on that part please.
Its up there with " We're gonna need a bigger boat"
I'll believe it when i see it.
Maybe it's not a good idea to double your monetary base and blow out your bond market after all....idiots.
duct tape and safety cones
http://enenews.com/wp-content/uploads/2013/05/4_Cone-600x450.jpg
The pic seems to be missing from the enenews article but the linked article still have it. http://enformable.com/2013/05/tape-broomsticks-and-safety-cones-used-at-...
Apparently MacGyver was in the neighborhood.
Yeahbut, CNBC says the U.S. economy is chugging right along with the throttle wide open.
Even the cosmos are now sending us warnings of how QE will end it all. Still, the Muppets keep buying.
“Asteroid 1998 QE2's close encounter”
http://cosmiclog.nbcnews.com/_news/2013/05/30/18599228-asteroid-1998-qe2s-close-encounter-generates-a-wave-of-attention-online?lite
Stock up on canned goods? Oh Brian you kill me. I'll be concerned when a comet comes within the moon's orbital path. It is funny that it's called QE2. If it's followed up by a QE3 then I'll know we are in serious trouble.
80 percent plus of a bank's business is real estate.
US RE sales missed this morning. This should bode well for banks.
Nothing but up.
No worries. I'm sure Tepco can fix any financial meltdown for them.
Yes, pour the toxic assets into the sea of greater fools. The sea of greater fools have magical dilutive powers. Too bad the top predators in the economic world don't eat their losses or the toxic waste they create.
Notice how the locals (individuals) have been selling into the tsunami of foreign fast money. Food for thought.
Notice also how prop books were initially front-running the inflow of foreign funds last year, only to then stay fairly constant net sellers after that. Seems even they underestimated the pace of the market's ascent.
http://nipponmarketblog.wordpress.com/
I'm starting to think that this can go on for a long, long......LONG time and I'm practically ready to tune out.
Which means it's probably going to hit the fan soon.
I've had those same thoughts with the same conclusion several times over the last few years and still nothing.
This is 2008 all over again right now. Japan = Lehman. This time though they are more prepared. If throwing everything at Japan does not work, and it won't, screws will come flying off all over the place.
Ok, Fonz, I'm saving this comment thread and if 2 years from now it hasn't happened yet you have to pay for the Asian beauty of my choice...or that Latina one, second from the left, who looks like she hasn't seen her toes since puberty.
trust me MH when this thing goes it's possible you get 3 down days in a row on all the major indexes at which point you better buy that 3% correction violently.
PUMP AND DUMP, BABY!!!