Japan: What to do now?
So here is a three year chart.
First, EWJ was trading at a significant premium to its moving averages (many markets are and a primary reason I am underweight stocks) Second, they print money as fast as Bernanke and the U.S. Treasury. Third, time is linear and it will take time to determine what the impact has been and to rebuild and repair the damages. Fourth, there is a human factor that cannot be quantified.
That was capitulation volume on dramatic price move, but the trade was several days ago, NOT NOW.
I believe there is an inverse relationship between talking heads pitching a trade and what you should do with your investments. I think many are long Japan and want out and need some liquidity.... don't be their sucker.
Japan will recover, its economy will survive but is it a screaming buy? I missed the vulture investment, might be another one in the future, but I will wait and see.
First, EWJ was trading at a significant premium to its moving averages (many markets are and a primary reason I am underweight stocks) Second, they print money as fast as Bernanke and the U.S. Treasury. Third, time is linear and it will take time to determine what the impact has been and to rebuild and repair the damages. Fourth, there is a human factor that cannot be quantified.
That was capitulation volume on dramatic price move, but the trade was several days ago, NOT NOW.
I believe there is an inverse relationship between talking heads pitching a trade and what you should do with your investments. I think many are long Japan and want out and need some liquidity.... don't be their sucker.
Japan will recover, its economy will survive but is it a screaming buy? I missed the vulture investment, might be another one in the future, but I will wait and see.
Posted by Bradley Fluetsch at 3/25/2011 4:41 AM 
Categories: Speculation
Tags: Japan investment risk retirement Yen IRA stock bond debt
Categories: Speculation
Tags: Japan investment risk retirement Yen IRA stock bond debt
Quite interesting. Thank you!
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