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Despite Face-Ripping Rally off Bullard Lows, US Investors In Japan Remain Down 4% Year-To-Date
Mission Accomplished Abenomics? The Nikkei 225 just hit fresh 7 year highs at around 17,900 (the highest since July 2007) managing to soar 24% off the mid-October 'Bullard lows' and once again trading above the Dow. Great news for all the bulled up US investors we see day after day on financial TV... wrong! In US Dollars, US investors remain down 4% year-to-date (and have yet to have a positive close in 2014). But hey on the bright side, your Japanese brethren are loving the nominal surge in their 'wealth' as their currency collapses to 119.4 this evening.
The Nikkei 225 is up ~24% off the Bullard lows...
As The Nikkei 225 is once again trading above the Dow... So to be clear, both the Dow and Nikkei 225 are up around 8.5% year-to-date in nominal terms... but in USDollars, the Nikkei is down 4% year-to-date (are you getting the difference now between nominal and real returns in a competitive devaluation world)
But Year-to-Date, US investors in Japan remain losers... underperforming US Treasuries by over 20%...
Charts: Bloomberg
Bonus Chart: And if you're wondering where all the Chinese QE-lite money went now that the real estate market has started to collapse...
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Fun-durr-mentals indeed!!!
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buy the MotherPHucking Dip.. repeat.. patterns make you $ right?
http://hedgeaccordingly.com/2014/11/this-month-end-market-anomaly-accoun...
Just like last time only this it's different right?
http://y2u.be/tOW5eljyjms
The bags of cheap rice in the USA are just PLUNGING IN PRICE and SOARING IN VOLUME!
INCREDIBLE!
Dow and Nikkei just hit parity briefly -
That is some performance, whether adjusted for currency collapse or not
It's almost Zimbabwe-like, no? Massive nominal gains, but your whole portfolio ends up worth about a dozen eggs.
but you can turn it into two dozen eggs in no time
It's a race to the finish(not that there is one).... and the nikkei is in the lead by three points, but coming up from behind is the dow....
Anyone else notice that the bulk of the Nikkei moves are made out of hours?
BTFD Its software stupid.
If indeed it is true that "In US Dollars, US investors remain down 4% year-to-date" then we might also assume the people of Japan also have done no better when concerting their gains to currencies other than the yen.
The moment the Japaneses stock market fails to rise enough to offset inflation and the people of Japan realize that even a weaker yen will not help we will see a tsunami of money fleeing Japan. This will constitute the end of the line for those left holding both JGBs and the yen. This has been a long time coming and I contend the cross-border flow of money leaving Japan is why some stock markets have remained so resilient . When Japan crumbles it will be felt across the world. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/05/japan-sliding-towards-abyss.html