Jan. 14 (Bloomberg) -- Japanese machinery orders unexpectedly fell to a record low in November as tumbling domestic demand overwhelmed an export revival. Orders, an indicator of business investment in three to six months, slid 11.3 percent from October, the Cabinet Office said today in Tokyo. The drop was the sharpest in a year and worse than all 25 estimates of economists surveyed by Bloomberg. Producer prices fell for a 12th month, a separate report showed. The reports underscore concern that Japanâs recovery from its worst postwar recession has yet to spread from exporters and spur spending by companies and households. Prime Minister Yukio Hatoyama unveiled a stimulus package and a record budget last month to spur domestic demand. http://www.bloomberg.com/apps/news?pid=20601068&sid=agBCP80bNV3o Recovery ? LOL !!!
and the response.... nikkei up 1.5%. just think if they'd been down 20%, then we'd have really seen a move up.
the last 10 months have challenged every peice of history about the relationship between stock prices and the economy. the mkt has beat people to a pulp who have questioned why many stocks are trading at valuations so far above any future earnings models most can come up with. for instance why is a cat trading at prices of 2006 when earnings were 3 times present earnings and business with construction and the world were booming like never before? we know earnings will not see those once in a lifetime peak yet any who used valuation measures has been punished for questioning and not buying. ANYONE WHO USED THERE YEARS OF KNOWLEDGE AND EXP ON THINGS SUCH AS INSIDER SELLING,VALUATIONS, INVESTOR SENTIMENT WHICH IS FLASHING RED HAVE BEEN PUNISHED FOR NOT BUYING.ANYONE WHO DIDN'T WANT TO SPECULATE AND CHASE WITH BAITED BREATH HAS BEEN PUNISHED .people are being humiliated with taunts when they mention a stocks price is getting insane. time will tell if doubters and prudent conservative investors are vindicated
i think the big players who used to make other big players careful have been eliminated, manipulation becomes much easier, doesn't hurt to have a few trillion fed monopoly dollars to trade with,the game is now what are the fed and their buddies going to do, i see no signs at the moment that they plan on turning this ship off its present course
Japanese housewives have everything invested in the "Yen Carry Trade". Speculation has displaced spending.