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Japocalypse Wow - Foreigners Dump Most Japanese Stocks Since 2010

Tyler Durden's picture





 

It would seem, in the case of momo-chasing levered fast-money flows, that Propertius was correct - "fickleness has always befriended the beautiful..." and Japanese stocks are no longer the once beautiful trend that Abe had promised them to be. A tapering of the US flow; a ripple across the bow of emerging markets; and suddenly Kyle Bass' sarcastically-named "macro tourists" are running for exits as Shakespeare himself once wrote, "was ever feather so lightly blown to and fro as this multitude." Historical quotations aside, the last time flow swung so violently negative, the Nikkei ended up losing 55% in the next 18 months. We love the smell of nay-sayers in the morning...

Foreigners sold the most Japanese stocks last week since 2010 and before that since the credit crisis started to implode...

 

This outflow was 3x the size of the entire selling following the tumble in May/June last year.

 

and just in case you are banking on that flowing back to the US... think again - as we are trying to explain - it's not real money, it's credit-created leverage...

The ironists among market punters will even attempt to construe all this as a reason to buy more developed world stocks on the premise that the money flooding out of such places as Thailand, the Ukraine, Turkey, and Argentina will be parked in the S&P and the DAX (perhaps overlooking the fact that the purchase price of these now-unwanted positions was most likely borrowed, meaning that their liquidation will also extinguish the associated credit, not re-allocate it).

A gentle reminder of days gone by when rational investors roamed the markets...

 

Charts: Bloomberg

 


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Wed, 02/05/2014 - 22:18 | Link to Comment Ulterior
Ulterior's picture

USD/JPY stands solid as a rock. Must be on Obama-mins

Wed, 02/05/2014 - 22:25 | Link to Comment THX 1178
THX 1178's picture

Before i even scrolled down and saw Kyle Bass smiling in that video i though of him. He said something about the shit starting in Japan right?

Wed, 02/05/2014 - 22:44 | Link to Comment JoeSexPack
JoeSexPack's picture

Go go Godzilla

 

https://www.youtube.com/watch?v=ln8-Y-fIbqM

 

Crush the debt ponzi

Wed, 02/05/2014 - 22:58 | Link to Comment Almost Solvent
Almost Solvent's picture

OOOPPPS, I thought this article was about JWOW.

 

Back to the Jersey Shore, not Land of the Rising Sun. 

 

And, yes, I was hoping for some Snooki too. 

Wed, 02/05/2014 - 23:28 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Just look at the "breaking news" on most MSM channels to realize how completely FUBAR the state of the nation is; something about Justin Bieber, his dad and marijuana on a private jet.

Idiocracy was not a work of fiction, but a forecast documentary that creeps closer to fruition with each & every passing day.

Thu, 02/06/2014 - 01:02 | Link to Comment satoshi911
satoshi911's picture

If beiber smokes pot, then maybe we should just legalize it,... what would barry do :)

Thu, 02/06/2014 - 06:46 | Link to Comment negative rates
negative rates's picture

Whee O, something stinks in Denmark, smells like financial diarrhea.

Wed, 02/05/2014 - 22:50 | Link to Comment i_call_you_my_base
i_call_you_my_base's picture

Yes, he did. He also said after the start of Abenomics they had 12-18 months. Which is around now.

Wed, 02/05/2014 - 22:27 | Link to Comment kaiserhoff
kaiserhoff's picture

Isn't that special?  Why I don't trade For-Ex.  The Heebie Jeebies wouldn't look good on me.

Wed, 02/05/2014 - 22:43 | Link to Comment knukles
knukles's picture

Only a week or two ago the talking heads were telling us to pile into EMs and Asia.

Huh....

What did they know that we didn't?
or uh...

Like the boys at Goldman were fond of saying during the Internet Bubble #1 "They just don't get it."
Comparing who had the fastest burn rates...

Well the Argies got a fast burn rate today.

How ever so convenient.
Just when we didn't know how much reserves we had, the records go missing.

Fuck me...

Thu, 02/06/2014 - 08:58 | Link to Comment game theory
game theory's picture

I read a story about Iron Mountain, financial records, and arson.  Arson was suspected in NYC in 1998 and in London in 2006.  What convenient times and places for records to go missing. 

Thu, 02/06/2014 - 00:49 | Link to Comment The Dunce
The Dunce's picture

No biggie.  Abe will print money.  Yellen will print money.  And all the bad feelings will be swept under the rug.  Word to your mother.

Wed, 02/05/2014 - 22:20 | Link to Comment Occams_Chainsaw
Occams_Chainsaw's picture

Oh no....Godzirra!!!!!

Wed, 02/05/2014 - 22:22 | Link to Comment kaiserhoff
kaiserhoff's picture

Brushing up on our Bartlett's.

Well done, Tylers.

Wed, 02/05/2014 - 22:31 | Link to Comment youngman
youngman's picture

Nikkei kind of rhymes with Twitter....kind of

Thu, 02/06/2014 - 01:57 | Link to Comment U4 eee aaa
U4 eee aaa's picture

History doesn't repeat but it often rhymes

Wed, 02/05/2014 - 22:33 | Link to Comment satoshi911
satoshi911's picture

Nikkei is skyrocketing right now, up 0.15%

JPY is holding nicely, getting stronger daily.

The world knows that long after the USA people all commit homocide in the coming civil war, that the JAP's will be going national in their HOMOGENOUS society trying to catch up with the CHinese.

If I had to bet, which country will still be standing 5 years from now it would be JAPAN, the USA is in triage now, and in 5 years the USA will be like MAD-MAX.

The JAP's are cohesive, in the USA everybody has fucked everybody.

The INSURANCE companys FUCK you

The lawyers

The Gubmint,

The MEDICAL racket bankrupts all

AIPAC, has reduced the USA from a young rich country, into poverty pimps

A man in the USA has been fucked his whole life, and once the shooting starts it will be the ugliest civil war in all human history, remember they are all armed to the teeth

Wed, 02/05/2014 - 22:35 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Where will they get the oil?  They have none of their own.

Wed, 02/05/2014 - 22:47 | Link to Comment knukles
knukles's picture

They use nukes.

Wed, 02/05/2014 - 22:55 | Link to Comment Crisismode
Crisismode's picture

 

 

Can't fill that Toyota gas tank with plutonium.

 

But maybe we can put wheels on Fukushima.

 

 

Wed, 02/05/2014 - 22:55 | Link to Comment nmewn
nmewn's picture

Thats democide!

Wed, 02/05/2014 - 22:45 | Link to Comment BandGap
BandGap's picture

Japan will be a shithole in a few years. And you're a shithead at the present time.

Give it a rest, asshole.

Wed, 02/05/2014 - 22:47 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

The Japanese Zombie Banks are a role model for the WS criminals.

The Japanese HOMOGENOUS society has wasted the last 10+ years.  I believe that homogeneity will be of value but only when Japanese start acting smarter.

Thu, 02/06/2014 - 01:00 | Link to Comment satoshi911
satoshi911's picture

Japan only leads the USA, cuz Japan is a USA colony, and have had too follow US-MIL rules for 70 years,

The US-MIL economic model ( zionism ) having destroyed japans economy, out of the ashes will rise a new nationalism.

The return of the Samurai Class :)

Thu, 02/06/2014 - 10:09 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Demming wasa not a mindless US drone.  You are.

Wed, 02/05/2014 - 22:33 | Link to Comment TideFighter
TideFighter's picture

"I'll take, What is a F-Bomb for $200, Alex!"

Wed, 02/05/2014 - 23:03 | Link to Comment nmewn
nmewn's picture

Ding!

Yes, Madeline.

"What is Fuckushima?"

Brrrppp, no. Thats Japanese twerking.

Ding!

Gloria?

"What is Fukushima?"

Correct!

Wed, 02/05/2014 - 22:35 | Link to Comment logicalman
logicalman's picture

Every now and again I take a look at 'The Markets'

My brain goes into overload, given the amount of manipulation we all know is going on.

I have another beer and/or smoke another joint (mostly and).

There are things that need to get done.

Honest exchange is all we need.

 

Wed, 02/05/2014 - 23:17 | Link to Comment PeterLemonJello
PeterLemonJello's picture

Logilcalman....my dog. Let's get together when it all goes down and enjoy a nice Dopplebock while puffing a J.

Wed, 02/05/2014 - 22:41 | Link to Comment bugs_
bugs_'s picture

japanese stock certificates are sooooo hot!

how hot are they?

they are soooo hot they start fires in iron mountain!

Wed, 02/05/2014 - 22:48 | Link to Comment i_call_you_my_base
i_call_you_my_base's picture

.

Wed, 02/05/2014 - 22:52 | Link to Comment fijisailor
fijisailor's picture

Looks to me more like the peak and big sell off in 2008

Wed, 02/05/2014 - 23:14 | Link to Comment PeterLemonJello
PeterLemonJello's picture

Let it be known, that Kyle Bass is still the reason that I don't ever cash in my nickels...

 

He is a pimp. Period.

Wed, 02/05/2014 - 23:17 | Link to Comment OMG
OMG's picture

Has anyone seen a rather large lizard?

Wed, 02/05/2014 - 23:46 | Link to Comment Hulk
Hulk's picture

Everytime I take a whiz !!! Green one too !!!

Thu, 02/06/2014 - 00:03 | Link to Comment user2011
user2011's picture

This time it will be different.    Japan will use HFT to save their asses.    US market drops because the gov must give a reason for people to join MyRA.   Only stock tanks, preious metal tank,  forex too volatile,  then people will settle nicely in the MyRA.    Need more people in the MyRA to continue to buy notes and bonds..   This is the new QE..  QE civilians.

 

Thu, 02/06/2014 - 00:03 | Link to Comment user2011
user2011's picture

This time it will be different.    Japan will use HFT to save their asses.    US market drops because the gov must give a reason for people to join MyRA.   Only stock tanks, preious metal tank,  forex too volatile,  then people will settle nicely in the MyRA.    Need more people in the MyRA to continue to buy notes and bonds..   This is the new QE..  QE civilians.

 

Thu, 02/06/2014 - 00:57 | Link to Comment q99x2
q99x2's picture

The FEDs connected the world economy to Janet Yellen's lungs.

Look out, thar she blows.

Thu, 02/06/2014 - 01:55 | Link to Comment The Heart
The Heart's picture

No one wants to do business with a country that lies to the world about the horrible fukushima Extinction Level Event. Besides, anything that comes from japan is very radioactive, and too hot to handle. Who wants to invest in things that no one can buy? For over two and a half years, everything that has come from japan is a suspect of radiation contamination.

http://topinfopost.com/2014/01/06/fukushima-meltdowns-global-denial-at-w...

 

Thu, 02/06/2014 - 01:59 | Link to Comment U4 eee aaa
U4 eee aaa's picture

Flash mob money

Thu, 02/06/2014 - 02:30 | Link to Comment Spungo
Spungo's picture

In theory, a cat hitting the ground at the 10x the speed of sound should explode when it hits the ground instead of bounce. That's why I don't think there will be a bounce this time.

Thu, 02/06/2014 - 03:24 | Link to Comment jubber
jubber's picture

he also said the YEN would collapse to something like 250...!

Thu, 02/06/2014 - 03:36 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

So... No Happy Ending?
;-),

Thu, 02/06/2014 - 10:15 | Link to Comment Woodhippie
Woodhippie's picture

Ahh!  Took me a minute.  That's comedy.

Thu, 02/06/2014 - 06:41 | Link to Comment disabledvet
disabledvet's picture

ummm...the theory that Japan Inc has been doing nothing while this still totally un-reported Fukushima disaster plays out is a total falsehoold.

The just bought Jim Beam for 12 billion.
That's another word for "hard money."

They've also been investing in a multitude of other dollar denominated and euro denominated "cash cows."

If successful this produces hard currency and will at least is doing something to protect the homeland. (financing the Beast.)

don't underestimate their ability to succeed.
Most Americans still buy Japanese cars for a reason: they're not worthless American CRAP that's "needs a bailout because creating the CRAP then screwing the taxpayer for it still isn't good enough."

We shall see if this is a beginning of a "beautiful friendship" or not...but Japan Inc. has done more to make the USA a better place than the bulk the American jerks have. Indeed if the USA turns into an industrial powerhouse again it will overwhelmingly be because the Japan, Korea...and perhaps a very nervous China...suddenly realize that Japan has a plan that really might in fact succeed.

It's not like Retard Russia is going anywhere anytime soon.
What does 50 billion get you Russia? Total CRAP apparently.

Thu, 02/06/2014 - 06:50 | Link to Comment negative rates
negative rates's picture

Your still a bit off, you can count on an American employee to try to screw up a better designed car and get paid with bennies to boot. So you still need more than just the better technology, you need to be able to avoid the scam that is the service industry today in America. First we sell, then we service is their motto, but the big bucks come from the servicing end.

Thu, 02/06/2014 - 10:23 | Link to Comment Toolshed
Toolshed's picture

"The just bought Jim Beam for 12 billion. That's another word for "hard money." They've also been investing in a multitude of other dollar denominated and euro denominated "cash cows."

I would expect the Japanese to buy more foreign assets as the realization sets in that, most if not all, of their homeland may actaually be unsafe for human habitation in the not too distant future.

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