It seems that bubbles can pop? No matter how much a nation tries to destroy its economy, raise its inflation, and devalue its currency - equity market corrections occur... Argentina's MERVAL index (among the best performing equity markets of Q1) is now down 12% in the last 4 days (since we discussed this tongue-in-cheek comparison to Japan [5]) - that is an annualized rate of loss of 100%... Of course, if you were to ask the Argentinian politicians, this drop is actually a rise - and we note that the official (and unofficial) exchange rate has not budged during the last few days.
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As the world stays with the Nikkei...
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Charts: Bloomberg