The weak US economy and the weak US dollar policy resulting from the Shanghai Accord meant that the Fed was unable to raise interest rates.
The Japanese yen is one of the largest currencies in the world.
Japan fired a major shot in the currency war in early 2013 when it devalued the yen against the US dollar under the current Japanese plan of ‘Abenomics’.
Could the the yen be a candidate for the first major currency crisis in a long time?
Japan is Australia’s second largest trading partner. For years the ‘carry trade’ out of Japan has pushed Aussie stocks higher. Trouble in Japan could easily show up in your investments. Find out more here.
Japan’s stock market crashed in 1989. Since then, the no-luck Japanese have had sluggish growth, recession, and on-again/off-again deflation.
Financial earthquakes are just as dangerous to your wealth as physical earthquakes are to your well-being.
You know you live in a strange time when a shrinking economy and a weaker currency causes a 7% surge in a stock market. But this is Japan we’re talking about.
The Bank of Japan (BoJ) stunned markets last Friday when it lowered interest rates to -0.1%. With rates already at zero, the BoJ joined the ranks of central banks that have pushed rates into negative…
Thanks to the Bank of Japan’s actions on Friday, Aussie stocks should continue to rally. So what did the BOJ do?
If the yen and gold breach the highs of 2015 (made just after the prior yuan devaluation) then it’s a sign of increasing global risk aversion.
The Australian dollar is trading at six year lows against the greenback this morning. It fell to $0.691 at 9:30am AEST, down from $0.698 on Friday.
Yen weakness is bullish for Aussie stocks while yen strength is bearish. For years, markets viewed the yen as a defensive or safe haven play.
Stick with the Trade of the Decade: Buy Japanese stocks. Sell Japanese bonds. And stay tuned… The kamikaze finance story is just getting started….
At some point, gold and yen will go their separate ways. When that happens, you need to be on guard…because things could get weird in the financial world.
In 2000 — about 10 years after the Japanese market headed south — the US stock market got whacked. That was the dot-com bubble popping.
The Japanese economy has decided to join the fun. It is going to goose up its own share market, just as US authorities have done…by hook or by crook.