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“If you don't read the newspaper, you're uninformed. If you read the newspaper, you're misinformed.”

“Whenever you find yourself on the side of the majority, it is time to reform (or pause and reflect).”

― Mark Twain



Subscriber Comments

Comment:

Eric,

Please help me understand the relationship between Japanese stocks, currencies, and the general trend of assets moving to the core of the US Dollar.

It appears the Invisible Hand looks at Japanese stocks the same as US (core) stocks. Why would Japanese stocks be any different than any stocks in the world, since they are an alternative to Govt debt?

The EWJ is a dollar-based ETF, so I thought it might move in the opposite direction to the dollar, but it's moving opposite to the yen. Is world war good for the EWJ? I wouldn't think so.

Thanks

Response:

SQUISH LIKE GRAPE

Watch the E&S report update, 06/29/24 Report — Japan Stocks As Godzilla Comes For Yen for a better explanation. We encourage all subscribers to watch it. Every market is interconnected and tied to the global economy and cycles.

A comparison between the Japanese Yen in the 2020s to the German Mark from 1924 to 1927, the well known Weimar Republic era, visualizes what's happening in Japan (see chart: Germany Weimar Republic Stock and Currency Prices.)

The Japanese Yen, like the German mark from 1924 to 1927, is devaluing in front of our eyes. Japanese stocks, like their German counterparts from a bygone time, are responding exactly the same.



Chart: Germany Weimar Republic Stock and Currency Prices:

The majority mindset, a view communicated by the following social media post below, will be squished like a grape for their lack of understanding. Please be wary of easy explanation on social media. These comments are worth the risk of getting blocked. Stop the foolishness, G20 will bow to the invisible hand when the time comes. Millions will learn this the hard way when false assumptions are broken.

The Yen is A LOT headed lower. It will take time. Markets do not care if an apology is issued afterwards.

#6J_F No way G20 will allow Japanese Yen to collapse. The next big move will be to the upside. #JapaneseYen pic.twitter.com/cbu5wBtNK1

— Dave Reiter (@TradesByDave) June 30, 2024

Follow me on 𝕏 or Facebook for further discussion.

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