🦧 japan money may not be as easy anymore
🦧 japan money may not be as easy anymore
"one of the best, affordable stock research platforms that hosts stock picking competitions”
🏦 mr. kuroda -> mr. ueda
haruhiko kuroda's been the governor of the bank of japan since 2013, and his time is coming to an end
as director of the world's 3rd largest monetary policy ($5tr economy), he was famous for unleashing $3.4tr worth of japanese cash on the investment world
this meant a decade of ultra-low interest rates in japan, sending a flood of japanese money overseas
soon, in april, kazuo ueda will be inaugurated as the new governor of the bank of japan, and he will likely reverse the flow of yen across the world
🚫 no longer easy
"easy money" or easy monetary policy means lots of cash in the economy and therefore low interest rates (which was how the yen looked like under kuroda’s watch)
interest rates have been rising everywhere else in the world, and ueda (the new governor) will probably have to raise rates for japan as well
the spread (or difference) between us 10-year treasury yield and japan 10-year treasury yield has widened from ~.50% to ~3.24% in the past 2.5 years
making it one of the reasons why the us dollar appreciated (or strengthened) 20%+ relatively to the japanese yen
🤔 just how important is jpy (yen)?
money’s already starting to “repatriate back to japan”
as japan's international investment holdings (~$3.9tr) are one of the largest (i.e. bigger than the uk economy), imo: rates movements in japan will be strong enough enough to bring about swings in global bond (and perhaps equity) markets
as of november 2022, japan held 14.87% of foreign-owned us debt, beating china as the largest foregn holder of us debt
🙏 since our last post, 7 new apes have joined – if you’re enjoying our content, please share with your friends to check it out and subscribe!
follow us on instagram & twitter :)
💡 something im thinking about
open ai (parent company of chat gpt) is alpha testing a web browsing plugin (click image)
