Japan’s “Nuclear” Impact on Markets

Posted by Victor Adair - VictorAdair.com

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Market Psychology has had a VERY BIG swing from bearish to bullish since the Key Turn Date in mid-November 2012  as it became clear that Abe was going to win the Japanese elections and begin implementing VERY aggressive reflationary measures to end two decades of deflation in Japan. The inter-connectedness of global financial markets insured that the BIG changes in Japan would contribute to BIG changes in markets around the world.

Nuclear-explosionSince mid-November 2012:

1)       the Yen has fallen ~15% Vs. the US$…now down 10 weeks in a row to a 2 ½ year low,

2)      The Yen has fallen ~20% Vs. the Euro,

3)      Gold has risen to All Time Highs Vs. the Yen,

4)      Global stock markets have risen with the major US Indices at 5 year highs (VIX at 5 year lows,)

5)      The Nikkei stock index has risen ~26%,

6)      European peripheral bond yields have fallen sharply,

7)      It has been “Risk-On” in global financial markets in a BIG way!

…..read more HERE