Japan Stocks Rise on Optimism Over Restart of Economic Activity

Japan Stocks Rise on Optimism Over Restart of Economic Activity

This article by Min Jeong Lee and Ayaka Maki for Bloomberg may be of interest to subscribers. Here is a section:

“We can’t let our guards down, but the numbers of new infection cases are falling, allowing people to formulate some sort of outlook, which is being welcomed by the market,” said Naoki Fujiwara…

Comments of the Day

12 May 2020

 

 

Video commentary for May 11th 2020

 

Eoin Treacy’s view

A link to today’s video is posted in the Subscriber’s Area

 

 

Bet on the V; ERP on Track; Inflation Coming?

Thanks to a subscriber for this report from Mike Wilson at which may be of interest. Here is a section:

 

Eoin Treacy’s view

A link to the full report is posted in the Subscriber’s Area

Gold’s relative strength over the last year, coupled with a tight labour market were already starting to raise interest in inflation hedges a year ago. Then came the truce in the trade war, the halting of the Fed’s rate hikes, the repo liquidity crisis and finally the coronavirus recession. That has once again raised the spectre of deflation.

 

 

Japan Stocks Rise on Optimism Over Restart of Economic Activity

This article by Min Jeong Lee and Ayaka Maki for Bloomberg may be of interest to subscribers. Here is a section:

“We can’t let our guards down, but the numbers of new infection cases are falling, allowing people to formulate some sort of outlook, which is being welcomed by the market,” said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co. “The market is moving based on a scenario that the June quarter will be a bottom for the economy, followed by a recovery from the September quarter.”

Optimism that economic stimulus measures will help cushion the blow from the virus also buoyed sentiment. The government and the ruling party aim to finalize plans for a second supplementary budget for fiscal 2020 during the current Diet session, the Yomiuri reported.

“The 2 trillion yen being touted is sizable and the government is taking action faster than expected,” said Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Institute.

 

Eoin Treacy’s view

The easing of lockdowns will allow the economies of the world to get off their knees and hopefully will allow some rationality to come back into public discourse. That’s not a guarantee by any means considering the emotionality in how coverage of the coronavirus is being reported. The equivalent of $200 billion in government supports is not all that large relative to what has been provided by other countries but it is supportive for asset prices.

 

 

Sudden Bitcoin Crash Sparks Serious Coinbase Warning

This article by Billy Bambrough for Forbes may be of interest to subscribers. Here is a section:

The bitcoin price lost more than 10% in a matter of minutes yesterday evening, dropping to lows of $8,100 on the Luxembourg-based exchange before rebounding to settle around $8,600.

However, an outage on major U.S. bitcoin and crypto exchange Coinbase just after bitcoin’s price plummet left many users unable to trade—the second time in less than a month Coinbase has buckled under stress.

“How many times do we have to say take your bitcoin off of Coinbase if you want to have access to it,” Rachel Siegel, a bitcoin and cryptocurrency content creator, warned via Twitter, adding, “this is not the first time Coinbase has gone down and it surely will not be the last.”

“Coinbase acting like the NYSE circuit breaking,” joked Jason Williams, cofounder and partner at bitcoin and crypto hedge fund Morgan Creek Digital, suggesting that Coinbase outages could dampen spikes and dips in the bitcoin price.

 

Eoin Treacy’s view

The challenge in an illiquid market is it is often much easier to buy than sell. That is particularly true when it comes to the cryptocurrency markets because transactions times are slow at the best of times. During a high-volume selling event exchanges are not equipped to deal with the volume. That’s not a bug, it’s a feature of the market.

 

 

Eoin’s personal portfolio – Last updated March 27th

 

Eoin Treacy’s view

One of the most commonly asked questions by subscribers is how to find details of my open traders. In an effort to make it easier I will simply repost the latest summary daily until there is a change. I’ll change the title to the date of publication of new details so you will know when the information was provided.