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Politics : Welcome to Slider's Dugout
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To: Fun-da-Mental#1 who wrote (6162)8/26/2007 9:46:34 PM
From: SliderOnTheBlack  Read Replies (1) of 50084
 
re:["do you still think we're off to the races?"]

Your question was in reference to this:

"BOJ - No Hike = Off To The Races... "

Off to the races, as in -- back into the yen-carry.

Emerging markets recouped 1/2 of their losses and
as noted earlier, all 3 major US indices now above
200 dma's:


Yen-carry traders won't get as leveraged as they were
in Q1 & Q2 2007. But, because of this turmoil in the
financial markets, the BOJ will probably not hike
rates until December.

There is a huge amount of cash in Japan that is seeking
both interest rate differentials and higher equity returns.
Japanese investors have approximately $13 trillion in liquid
financial assets and over 50% of this, is in cash deposits.

The retail Japanese investor is a huge factor in the U.S.
Stock Market. While the BOJ is under huge political pressure
to protect their exporters...this creates tremendous outlfows
of cash into other markets.

...that's why - "it's off to the races again."

This is a structural trend - not a cyclical one. And it
will continue untill the NIKKEI outperforms global markets.

SOTB
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