The Japanese Stock-Buying Greatest Fool Uncovered: France

Tyler Durden's picture

French investors are piling into Japanese stocks again - just as they did at the end of 2013 - and as Bloomberg reports, this is a sign to Nomura that the market is poised to fall as those same French 'investors' unceremoniously dumped it all in January and February of 2014. “The French were huge net buyers at the end of last year... and now they're doing it again," noptes Nomura, "if they decide to unwind positions, the Japanese market is in for a drop."


As Bloomberg notes,

French investors are piling into Japanese stocks again, a sign to Nomura Holdings Inc. that the market is poised to fall.



The chart above shows France’s asset managers were the largest net buyers of Japanese shares over the two months of November and December 2013, when the Topix index rose 9.1 percent. They turned into the biggest sellers the next two months, central bank data show, as the equity gauge tumbled 7 percent. French investors returned to the top buying rank in October, an indicator to Nomura that history may repeat.




“The French were huge net buyers at the end of last year before switching roles in January and February and sending the market lower,” said Jun Yunoki, a strategist at Nomura. “Now they’re doing it again. France has many derivative and quantitative investors that swing in and out of markets.”


“They don’t usually buy so much, so the fact they’ve been snapping up such large quantities again is worrying,” Yunoki said. If they decide to unwind positions, the Japanese market is in for a drop, he said.

*  *  *

Wondering why France would be such huge outsized buyers of Japanese stocks? Wonder no more...


So - as France piled into Japanese stocks... Japan's Portfolio Investment in French stocks rose by the most since January 2009!!!

How do you say "you scratch my back..." in Japanese?


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Peter Pan's picture

What's so strange about the French investing in Japanese equities?

After all, weren't they the ones who voted for Hollande?

Arius's picture

Silly me thought was Belgium again ....

Looney's picture

...How do you say "you scratch my back..." in Japanese?

Pourquoi pas?

Quanto costa?

Zhingh bel baogh?

Cheshi pizda?


Sudden Debt's picture

THE KINGDOM OF BELGIUM! but carry on, don’t let me interupt you...

Arius's picture

right ... it seems you guys got deep pockets

ZH Snob's picture

it would appear the french are riding the bubble up, cartel style, to later pop it themselves. 

for a few yen more.

SickDollar's picture

Hmm me think France has a secret  deal  with Japan (watch for more big contract/I scratch yours  you scratch mine)

Vive La Republique



piratepiet's picture

what would be the purpose of such a deal ? 

SickDollar's picture

This is how France survives, their exports are very expensive (think Dior, Haut Couture etc..., than think Japanese buying this crap)





HardlyZero's picture

Paris and Tokyo compete as most advanced city all the time.

French fashion has been popular in Japan for many decades, since WWII.  And France's earlier control in Asia was emotionally supported by Japan. 

Maybe France is pulling on Japan's hemline now too much ?

SickDollar's picture

it seems the French were long due in terms of scratching the Japanese back !!

The French have a unique way of doing business in the world ,they always wait the last minute lol

 Plus tard que jamais lol

SickDollar's picture

True Story this will give you an idea How France govt makes money. In 1995 France had a shortage of  cash "Budget" , as usual they went to one of their old colony , in this case, Algeria (specifically a corrupt general), and told "them" (More like an order) they needed to buy night vision goggles because it will be an easy sell to the Algerian citizens because they were in the middle of a civil war vs the Islamic extremist/ terrorist (created by the Algerian govt by the way, hmm this reminds me of something)

et Bien sur (Of course) they over charge them big time

the general is happy got some Euros deposited in his secret Swiss bank account

 the French are happy  with their "Budget "'  and bogus contracts (Export/Import numbers look good too )




craus's picture

Partners in the same crime.

falak pema's picture

Is that part of the move to decouple from dollar?

Wheels within wheels, hedge your bets as you don't know if the dollar going up will implode WS faster than Yen going down does  the same for the Nikkei. 

"The greatest fool" is a title that will be hotly contested in 2015 as thieves fall out. 

One thing looks sure, the roller coaster ride from pillar to post chasing the pot of gold will get wilder.

winchester's picture
winchester (not verified) Jan 1, 2015 7:10 PM

FR just need money, we are totally fuck with no manoeuvrability AT ALL.


fr prez just said on annual tv wishs " we must stop auto bashing " understand " hold tight, do not panic, trust us."

---> need money, full panic

for some of us, this year is mostly the last before shit hit the fan, if not, then 2016.


next presidential election in 2017 is right vs. extrem right. socialism is overkilled here. no more for decades, for sure.

Fuku Ben's picture

Those sneaky French. I still think they built something into the Statue of Liberty as a Trojan horse to attack America. Their former countrymen & now possible partners next door in Belgium are buying up America

So are France & Belgium buying up the world and then going to re-merge once they're done after presenting a false dichotomy for so many years?

There is one group based there that could be trying and have the power and influence to do this. But I'm not posting their name here. That last person that did that regrets it to this day. Poking bee hives with a stick is not on my list of New Year's resolutions

winchester's picture
winchester (not verified) Fuku Ben Jan 1, 2015 7:08 PM

Their former countrymen & now possible partners next door in Belgium are buying up America


biggest BS  ever, france is bought by arabs and china.. stop saying crap, would you. we all have our deamons, but france is not america's one, for sure.

USA is EU's deamon. do not reverse the problem.

bentaxle's picture

I mean we're all trying to have a run of the mill disorderly crash...........and then the French turn up! FFS!!

GoldSilverBitcoinBug's picture

We need return on our "investment" to buy anime/manga as we are number one in the world (just after Japan) at buying it, and also get some extra to buy tentacle porn.

Bemused Observer's picture

The desperate search for yield somewhere, anywhere, will continue right up till, and well into, the final crash.

SoDamnMad's picture

Anybody interested in a good deal on an amphibious assualt ship? We could paint it white and you could claim it is the world's largest luxury yacht.

chinaboy's picture

No wonder the SOCGEN analyst keep predicting that Chinese will need to buy YEN.