nikkei breaks 10,000, page-2

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    Irrational exuberance??

    I think it's coming from 2 sources. The first is Japanese companies selling off US Treasuries (mass selling currently happening due to the low yields, as documented on Bloomberg). The second is US and other companies pulling out of the US as the US sinks. Although the yanks have denied it, many believe they have pulled away from the "Strong Dollar" policy that was a cornerstone of the Clinton administration.

    Unfortunately, neither of these can be construed as a view of confidence in the Japanese economy, so I wouldn't be starting to invest in Yen as it's softening against the $AUD. The stronger Nikkei will help some of the Japanese insurance companies that are technically insolvent, but they still have a few years of pain with the banks.


    Arigato Gosaimushi ta
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