This house still a bit wary of equity markets, in general. I noted last year here about the BOJ purchasing etf's in their equity markets. I couldn't imagine at the time such a false market prop and for what good. Guess we'll discover the outcome at some point in the future. The BOJ announcement of itself may not be too critical on its own; but in light of many other vents in place or to be put in place, this could be one more heavy rock too much into the global equity boat and causing the hull to be a bit too close to the water line.
Part of the article:
Bank of Japan: On Thursday (3/8), the Bank of Japan will release a policy statement followed by a press conference. The Bank of Japan Governor Haruhiko Kuroda may announce an exit from monetary stimulus as early as 2019. If we see an announcement to dial back its huge stimulus program (ahem free money) we will likely see markets in Japan and around the world fall.
The Bank of Japan bought assets that were equivalent to almost 1 years’ worth of Japan’s GDP. (Imagine the Fed instead of just buying MBS and Treasury’s bought $10 trillion USD worth of US stocks) Should that disappear, we are likely to also see a jump in bond yields and a strengthening of the Japanese Yen.
https://www.fxstreet.com/analysis/1-2-3-4-i-declare-a-trade-war-201803050213Anyway, wake up in a pleasant mood.
Catch
Comments
Regards,
Ted
Bloomberg:
https://www.bloomberg.com/news/articles/2018-03-04/boj-s-kuroda-joins-queue-of-central-banks-looking-toward-exit
Bloomberg:
https://www.bloomberg.com/news/articles/2018-03-05/boj-has-tools-when-needed-to-exit-in-stable-manner-amamiya-says