Japan 2023 is Risk On While Western World Is RIsk Off
Japan might offer some interesting plays for risk assets. Getting long in some bullish Japanese stocks might be interesting. Especially if those stocks can catch some other bullish trend unrelated to .
What's going on in Japan? Short answer is Central Bank Monetary stimulus... need i say more?
..But wait.... Didn't they recently raise rates to the highest level seen in over a decade in December 2022?
Yes, but , Raising the rate cap (to 0.5% which might as well still be 0) is only half.. no a third of the story.
BOJ stated in 2/02/2023 statement that they raised the rate cap to better facilitate the continuation of monetary easing AND they will offset the interest rate increase by ramping up the purchase of government bonds.
AKA.. the Japan money printer is alive and well and they are hoping investment returns to the Yen and in turn yen assets.
Land of the Rising Stocks.
What's going on in Japan? Short answer is Central Bank Monetary stimulus... need i say more?
..But wait.... Didn't they recently raise rates to the highest level seen in over a decade in December 2022?
Yes, but , Raising the rate cap (to 0.5% which might as well still be 0) is only half.. no a third of the story.
BOJ stated in 2/02/2023 statement that they raised the rate cap to better facilitate the continuation of monetary easing AND they will offset the interest rate increase by ramping up the purchase of government bonds.
AKA.. the Japan money printer is alive and well and they are hoping investment returns to the Yen and in turn yen assets.
Land of the Rising Stocks.