Tokyo stocks end higher after Fed vows to maintain monetary easing

There is still something very wrong with the Yen / Dollar rate. Should be 120 to the dollar.

Enjoy the bubble my friends.

@Sandy. I’m of the opposite belief. I expected it to break 100 as it did a few years ago. The US has the proverbial printing presses going at full speed.

The US has the proverbial printing presses going at full speed.

Well, Japan's central bank is printing at hyper-speed.

And nor does the Fed buy risky assets like equity ETFs with the money they print. Not only does the BoJ buy such risky assets, the BoJ is in fact the biggest owner of stocks in the entire Japanese market now.

No other central bank on the planet claims that they need to buy stocks to the point that they become the biggest owner of stocks in the entire market, in the name of conducting monetary policy.

"Purchases of beneficiary interests in index-linked exchange-traded funds and investment equities issued by real estate investment corporations with the aim of facilitating money market operations."

https://www.boj.or.jp/en/mopo/measures/mkt_ope/ope_t/index.htm/

The only way that makes any sense, is if the BoJ has already printed so much money that it has bought all the public debt the government has to offer, and, yes it has! so they have little else left to buy... and even then they have become the biggest owner of Japanese stocks!

The US situation is by no means rosy itself, but Japan's situation is already about twice as bad.

Enjoy the bubble my friends.

P/E ratios in Japan are and have long been long lower than those in the US. Ergo, the US is closer to bubble territory than Japan, if it is a bubble.

The US situation is by no means rosy itself, but Japan's situation is already about twice as bad.

Keep in mind the BOJ is a global a pioneer, since it invented modern QE about 20 years ago. Whatever the BOJ does, the central banks in the other major economies follow suit. Watch this space.