A little late Goldman as I’ve been onto this for some time now – right?
As many of you know I’ve been “following the hot money” out of Japan over the past several months, as well been keeping a close eye on the Japanese Stock Market “The Nikkei”.
I can only imagine that for many of you, likely absorbed in the daily coverage of things far closer to home ( such as the SP 500 or DOW ) this may appear somewhat “uninteresting” or even “un-applicable” to your current/future trading and investment interests, but encourage you to stick with it long enough to see this through.
Perhaps the recent and “sudden” drop in U.S Equities ( erasing the past 2 months gains in a single 48 hour period ) may have done a better job in “captivating your attention”, as I’ve always suggested that “we’ll see the cracks in Japan first” and that U.S Equities are generally…..always the last to go.
We’ve now seen the very best that The Bank of Japan can do with respect to keeping their own stock market propped up as long as they can, employing the exact same techniques as The Federal Reserve – only on a much larger scale. As The Fed has continued with its tapering and is very close to “shutting off the tap altogether” ( down to only 25 billion per month ) Japan’s QE program has been blistering forward at an alarming pace and has contributed considerably to the recent rally in U.S Stocks – as money floods over seas in search of yield.
This just out from Goldman Sacks:
Goldman Warns Of 6.5% Japanese GDP Collapse – Worst Since Lehman
The greater-than-expected weakness in the consumption snapback signals significant downside risk to our forecast of 4.6% decline for Q2 real GDP (sequential annualized). While we expect lower imports, higher inventories, and other factors to support GDP to some extent, we see negative real GDP growth of around -6.5% as likely, based on the data currently available.
The data is set for release on August 13th.
Japan is headed for economic collapse, and for those of us interested in “taking this seriously” ( keeping in mind that Japan led the market crash of 2007/8 by 6 months ) a miriad of trade opportunities will soon be upon us.
For stock traders again…..a quick look at EWJ – The Japanese Index Fund ETF.
EWJ_July_3_Forex_Kong
I can understand how hearing it from an “anonymous gorilla over the internet” may not be enough to get you outside your comfort zone fair….. but Goldman now too?
Japan led the charge lower in 2007 / 2008 and from everything I track / follow I see that this time – things will be no different.
Come check out how we are trading it ( and profiting from it ) in our Members Services Area.
more on the subject: http://confoundedinterest.wordpress.com/2014/08/03/japan-sinks-into-the-abenomics-abyss-debt-to-gdp-at-226-q2-gdp-likely-to-fall-5-house-prices-continue-to-fall/
Do check the members area out. Seriously. I make around 400 pips a week directly off the back of his site. Use his trades or not there’s enough in there to kick start trading. And no, I’m not on the payroll.
Thanks for the good work there Andyman – much appreciated.
We’ve slugged out some long slow months here over the summer and still came out on top so….
I can only expect things to get “even better” moving forward past this 6 month run across the top!
I also vouch for the members area. I don’t necessarily take Kong’s trades (that he sends in real time email) per se, but I’m pretty much trading on the same wave length and like the site more for the Weekly and Daily commentary. I see the benefit more from the “teach a man to fish…” philosophy; as opposed to just getting the fish (from his trade alerts, though those are obviously beneficial too).
Thanks alot David. Really.
It’s been a bit of a jump moving from “reckless abandon” here at the blog ( with my day to day ramblings ) to providing a service.
I appreciate the good word, and will continue to put in my full effort.