The japanese are crazy. Do you have any fundamental or technical reason to support your view? Thanks.
"I'd say the opposite: FED is trying to keep everything at "normal" levels. And this is the problem" people who believe that you can print money and believe it will insure a vibrant economy has been proven by history to be dead wrong. you cannot inflate your way to a healthy economy. it has never happened. the problem is on the fiscal side. there is too much government regulation and government debt. printing money leads to bubbles and non productive activities as people try to protect themselves against a depreciating currency. the market is too high based upon economic activity. it is at this level because investors are anticipating inflation. even though gold is off its high it is up 4x in 10 years. if that is not a predictor of inflation what is?
I remember that in 2007 the Dow broke its previous high at 12000 and proceeded steadily and slowly (as is doing now). That fact was widely advertised. It went on 2000 points more,then we know what happened.
General liquidity maybe? No-one knows 100% for sure. I feel the Fedâs QE practices certainly have something to do with it, but I suppose I could be wrong._
there are enough already written Google if you're interested but in short yen is not reserve currency and their debt is much higher- so Japan can't emulate US they will default or go through massive devaluation ok, they already devalued 35% but from this levels maybe another 200%. I don't know how it can be good for their economy but you can be sure this will create huge turmoil in all world markets
i am watching the JGB too but honestly its hard to be short right now US stocks. you don't get a day of weakness ever and everybody believes the fed will not stop printing for along time. you have people chasing yield but the amazing thing is how this buying view was not this strong 6 months & 300 s&p points ago. what changed besides breaking new highs? for the past 2 years markets went up and the sales growth predicted never came. you know the system is broken but it does not matter because money wants it to move up and economics does not matter until markets take it out of the central bankers hands like JGB yield moving up.
Gold and silver getting knocked down hard again tonight. I find it funny how everyone was predicting 2000 and 5000 gold and now its falling faster than they can sell....why im saying this is because the reversal happened so unexpectedly that just like silver and gold the same thing can happen to equities. Just when you think they can keep moving higher and higher the drop comes.
gold is down for the same reason equities are up - because Fed wants it why to be mad? we entered parabolic phase - it can't continue for long,although it can go very high parabolic phase can bring 500% blow off top easily from the bottom so S&P 2500 in a year is not out of question whatever, daytrader should care less just observe and profit every day