Weekly Report: what happened at DFJ last week (0408-0412)?

Weekly Commentary: Trouble Brewing In Financial Asset Wonderland

Doug Noland: The Fed's misguided dovish pivot unleashed precariously loose market conditions. He says the market is in the midst of a bubble. He argues that Bubbles can inflate to unimaginable extremes - and then quadruple. Noland says the late-cycle fear of Bubbles is missing out on the reality.

The Bank of Japan's New Path Ahead

The Bank of Japan is set to normalise monetary policy when certain conditions are met. In March, the BoJ raised rates for the first time in 17 years. ING expects inflation to fall below 2% and a recovery in domestic demand growth to support growth in 2024. The market is pricing in a 25bp hike by the end of the year.

Springtime For Japanese Stocks

Japan may be blossoming again. Goods and wage inflation are returning, some companies are embracing real and significant corporate reforms, and the equity market has surged. The Japanese economy appears to be emerging from years of stagnation. A third of companies in Japan have price-to-book ratios below one.

Broaden Your Investment Horizons

It may be time to look beyond the U.S. For equity market performance. Looser monetary and fiscal policy could add momentum to what already appears to be a global cyclical recovery. Europe could cut its interest rates sooner than the United States. Europe's manufacturing activity could get a boost from stimulus.

Weekly Report: what happened at DFJ last week (0401-0405)?

Weekly Commentary: Global Ring Of Fire

Money Market Fund Assets surged $70.5 billion last week to a record $6.111 TN. Milton Friedman: The Great Depression was the height of the boom and the depth of the depression. Doug Noland says we are in the "terminal phase of history's greatest boom and bust.

Global Equity Valuations: Pockets Of Opportunity

Global Macro Outlook: Second Quarter 2024

Home Market Outlook Economy Analysis Global Macro Outlook: Second Quarter 2024. The global economic picture did not change significantly in the first quarter of 2024. We continue to believe a soft landing is the most likely outcome for major economies. The US economy continues to outperform, with growth above potential.

Global PMI Selling Price Inflation Accelerates To 10-Month High

Global PMI Selling Price Inflation Accelerates To 10-Month High. Average prices charged for goods and services rose globally at the fastest rate for ten months in March. The steepest rates of selling price inflation were recorded in the UK and the US. The main area of stubborn price pressure remains the service sector.

The Paradox Of Japan's Negative Rates

After the Bank of Japan cut rates below zero in January 2016, the yen gained 10% against the U.S. Dollar. The yen sold off while the Nikkei 225 rallied. The recent hike in interest rates may end up further stimulating, instead of slowing, economic growth. Negative rates act as a tax on the banking system rather than stimulating growth.

Weekly Report: what happened at DFJ last week (0325-0329)?

Japan: Stronger-Than-Expected Retail Sales, Softer-Than-Expected Industrial Production

Tokyo consumer prices unexpectedly rose 2.6% year-on-year in March. Industrial production unexpectedly dropped again in February. Tokyo inflation hasn't changed much above the 2% level. The Bank of Japan will pay more attention to the improvement in retail sales and sticky inflation.

Japan Ends Its Negative Interest Rate Policy

Bank of Japan ended its negative interest rate policy on March 19, 2024. Higher interest rates and rising inflation expectations are positive for the Japanese equity market. We are positive on Japanese banks, industrials and consumer discretionary companies. The impact of the policy change on the USD-JPY rate is likely to be gradual.

Japan's MTICCC Takes Center Stage

WisdomTree Japan SmallCap Dividend Fund declares quarterly distribution of $0.6150

WisdomTree Japan SmallCap Dividend Fund declares quarterly distribution of $0.6150. Payable Mar 27; for shareholders of record Mar 25; ex-div Mar 22. The fund is an exchange traded fund for the Japan Small Cap Dividends Index.

A Momentous Week For Monetary Policy Bodes Well For Markets

Bank of Japan raises rates for the first time in 17 years. Swiss National Bank becomes first developed central bank to cut rates in this rate cycle. The BOJ's decision to end negative interest rates is a vote of confidence in the Japanese economy. Five developed and seven emerging market central banks met last week.

Japanese Stocks Are Red Hot

Why We Stay Risk-On In The Short Term

U.S. Stocks hit record highs last week and 10-year yields fell as the Fed stuck with planned rate cuts. Japanese stocks gained on a cautious BOJ policy pivot. We see falling inflation, nearing interest rate cuts and solid corporate earnings supporting cheery risk sentiment.

Weekly Report: what happened at DFJ last week (0318-0322)?