It’s time to update our time cycle composites, and what they say for equities in the U.S., U.K., Germany and Japan and long-term interest rates and credit spreads in the U.S.
Once again, this month’s “Of Special Interest” examines deflation but employs a longer time horizon. We also contrast the deflationary environment in Japan versus current U.S. conditions.
Recent market action appears to be indicating that cyclical forces have, for the time being, put Japan’s stock market recovery on hold.
Japan appears to be getting its fiscal house in order. Opportunity may be developing here. We constructed a list of potential Japanese ADRs, and built an index to monitor the situation.
Full Disclosure (Reg FD), Investment Banking conflicts (hardly a recent development) and the Nikkei and DJIA: Will they cross this year?
As readers know, we have been bears on Tokyo stocks for several years. But we were early in the past. Recent action leads us to believe the bubble may finally have burst, with the remarkable levitation act about over.