Skip to comments.Is it game over for Japanese equities?
Posted on 06/13/2013 7:09:54 PM PDT by TexGrill
The stampede out of Japanese equities resumed on Thursday, sending the benchmark Nikkei 225 tumbling as much as 6.4 percent.
Prime Minister Shinzo Abe`s disappointing "third arrow" of long term economic reforms and the Bank of Japan`s recent inaction to address bond market volatility is forcing investors to reassess their outlook for the country`s stock market, said experts.
"Obviously, the three arrows that came out from Abe didn`t really meet the mark. The expectation was really, really high, and he missed it," David Poh, regional head of asset allocation at Societe Generale Private Banking told CNBC on Thursday.
"At this moment, I`m a bit more cautious, it`s not the time to go in, stick your hand out and catch a falling knife. It`s best to sit on the sidelines and wait till after the July [upper house] election," Poh added.
Japan`s high stakes elections for the upper house of parliament are scheduled for July 21. If Abe`s Liberal Democratic Party (LDP) wins a majority in the upper house, it could make it much easier to pass through legislation, which strategists view as positive for the market.
Abe`s three-pronged policy to boost growth started with monetary and fiscal stimulus, but the Prime Minister`s recent announcement of his longer term growth strategy fell short of expectations.
The Bank of Japan`s nonchalance in addressing swings in the government bond market at its last policy meeting, has also led to market jitters.
(Excerpt) Read more at moneycontrol.com ...
This morning I could have sworn I read that the Nikkei was expected to bounce back up 5 percent. Did it drop an additional 6 percent from what it did the other day?
It’s always dicey trying to ride the “volatility” of a system that’s starting to go out of control, which they all are now. I tried one of my very-high-percentage day-trades the other day and it just about blew up in my face.
Soros is simply playing with the market because Hatoyama and his guys were such screw ups that the LDP are back in power and are trying to devalue the yen so that Japanese firms can compete better with America, Korea, China, etc.
Does Abenomics work? No. But Soros is accelerating the death of the Japanese market. All Japan needs to do is allow interest rates to rise a bit (and give Japanese some incentives to ACTUALLY INVEST IN BANKS), deregulate the market, and privatize many public programs (make education prefecture-driven, privatize post-office savings accounts, privatize and MAKE MEDICAL CARE RESPONSIBLE TO MALPRACTICE, and get rid of all the logistical measures that make childbirth and rearing expensive.
There is no malpractice liability in Japan? I guess we know how they will deal with their excess elderly population: “Oopsie! I gave grandma Tanaka a little too much insulin that time. Oh well, another geezer off the rolls. NEXT!”
Well, there technically is malpractice, but you literally have to die for your kin to sue for it.