Here's the Nikkei 225 vs. the S&P 500 over the last six months, via Yahoo Finance:
Any macro manager who hasn't participated just isn't paying attention.
We were late to the action (Dec. 17 at 9,828.88), not recognizing what was happening but as soon as Abe won we did something they teach you in junior analyst school to never, ever do.
We made a declarative statement:
Japan's Nikkei is In the Early Stages of an Historic Move
...As another Dow Jones story commented:Now, with the index at 13,192.59 and USD/JPY at 98.6650 (up from under 78 in Oct.) it's probably time for everyone to take a deep breath.
...Utilities were a major beneficiary of the LDP victory, with Tokyo Electric Power soaring 32.9%, as the new ruling party is discussing restarting the nation's idle nuclear power plants. Kansai Electric Power also shot up 17.7%....That's not just short covering, that's a whole new mindset.
But just a breath. From the Feb 6 post "Nikkei Approaching Escape Velocity, Up 3.77% Overnight":
And just a reminder, from the January 11th post "No typo: Analyst sets Nikkei 63 million target" (it's Société Générale's Dylan Grice):When markets give you that high hanging curve ball you have to take advantage.
...A couple characteristics of big bull markets:
1) Once the move is underway waiting for a pullback almost guarantees you will be underinvested. Everybody is waiting for a pullback, not everybody has the fearlessness/foolishness to commit.
2) The market will find a way to make your day-to-day prognostications and pronouncements look stupid.
Ease in, even if you have to grit your teeth and shut your eyes.
Sixty three million baby!
