How do you guys read the latest news of the Bank of Japan?
Will the economy be better = grow on their ETFs, or will the ETFs go down because the BOJ will stop buying?
in my view, the end of buying ETF is less of a challenge. The bigger Problem in Japan is that they increased their interest rates. Historically, there is a bunch of debt in JPY… and that debt is invested in assets across the globe. When interest goes down, the debt gets reduced and assets get sold. This was a big contributor to both the GFC as well as the dotCom bust. We will see in 2, 3 weeks how the market absorbs it but at the Moment, its time to watch the Japanese market very carefully…
Specifically if the currency goes up big time, thats an indication that carry trades are beeing unwound and that there is big sales pressure on other assts.
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