Hello Ido79, <<Short term what, in your opinion, will this news have on JGB's and the N225?>>
I do not know, but I will pretend to be a wealthy Japanese investor with oodles JGB and not very much N225.
I would be scared silly, because I am losing capital value fast, even as I am earning zero on my capital value, and I am not sure where to run.
I would need to lighten up on JGB on double time and load up a bit on just about everything else, including N225.
For the leveraged Yen carry-crowd (I am Yen carrying, but am not leveraged), doom beckons, and so, same actions required.
I understand, instead of sex tours, the Japanese travel industry is now pushing private banking tours, and so I expect Japan to continue export capital into false havens.
Given that Japan is the premier supplier of capital to the world, I expect many assets, in addition to N225, to increase, and then to crunch down, causing more volatility.
I am puzzled about the Japanese investors, why they torture themselves so, and not simply buy gold, platinum, oil, etc ... you know, the sure bets;0)
Chugs, Jay |
