Money and Finance
- The Japan Syndrome: Rising Rates And Risky Exposures – By Jason Zweig
That was close. The U.S. stock market escaped the selloff in the Japanese market—at least for now. When the Nikkei Stock Average dropped 7.3% this Thursday, the Standard & Poor's 500-stock index fell by as much as 1.1% during the day, only to...
- A New Year, But Some Old Issues – By Bill Bishop
Last week’s column concluded with the comment that a resolution to the Chinese-Japanese dispute over the Diaoyu/Senkaku Islands seemed far away despite hopeful talk about the possibility of a summit meeting between Xi Jinping of China and Shinzo Abe...
- Three Reasons Japan’s Economic Pain Is Getting Worse – By Jared Diamond
Japan’s economic problems are serious and getting worse. Foremost among them is the crushing burden of government debt. Japan’s ratio of government debt to gross domestic product, currently about 2.28, is by far the highest in the industrial world,...
- Hedging And The 1988-1990 Japanese Stock Market
Interesting lesson/piece of history, from Seth Klarman’s book Margin of Safety: “In the best of all worlds, an investment that has valuable hedging properties may also be an attractive investment on its own merits. By way of example, from mid-1988...
- Albert Edwards: Europe Is On The Edge Of A Deflationary Precipice That Will, Paradoxically, Usher In 20-30% Inflation
Via Zero Hedge: Amid all the recent euro-related turbulence, the markets have not focused enough attention on the rapidly vanishing core CPI inflation rates in the US and eurozone. With both moving below 1%, we are now only one cyclical mishap from joining...
Money and Finance
Dylan Grice: Nikkei 63,000,000? A cheap way to buy Japanese inflation risk
Japan is no Zimbabwe. Neither was Israel, yet from 1972 to 1987 its inflation averaged nearly 85%. As its CPI rose nearly 10,000 times, its stock market rose by a factor of 6,500 … Regular readers know that I don’t generally make forecasts, but that every now and then I do go out on a limb. This is one of those occasions. Mapping Israel’s experience onto Japan would take the Nikkei from its current 9,600 to 63,000,000. This is our 15-year price target.
- The Japan Syndrome: Rising Rates And Risky Exposures – By Jason Zweig
That was close. The U.S. stock market escaped the selloff in the Japanese market—at least for now. When the Nikkei Stock Average dropped 7.3% this Thursday, the Standard & Poor's 500-stock index fell by as much as 1.1% during the day, only to...
- A New Year, But Some Old Issues – By Bill Bishop
Last week’s column concluded with the comment that a resolution to the Chinese-Japanese dispute over the Diaoyu/Senkaku Islands seemed far away despite hopeful talk about the possibility of a summit meeting between Xi Jinping of China and Shinzo Abe...
- Three Reasons Japan’s Economic Pain Is Getting Worse – By Jared Diamond
Japan’s economic problems are serious and getting worse. Foremost among them is the crushing burden of government debt. Japan’s ratio of government debt to gross domestic product, currently about 2.28, is by far the highest in the industrial world,...
- Hedging And The 1988-1990 Japanese Stock Market
Interesting lesson/piece of history, from Seth Klarman’s book Margin of Safety: “In the best of all worlds, an investment that has valuable hedging properties may also be an attractive investment on its own merits. By way of example, from mid-1988...
- Albert Edwards: Europe Is On The Edge Of A Deflationary Precipice That Will, Paradoxically, Usher In 20-30% Inflation
Via Zero Hedge: Amid all the recent euro-related turbulence, the markets have not focused enough attention on the rapidly vanishing core CPI inflation rates in the US and eurozone. With both moving below 1%, we are now only one cyclical mishap from joining...