Japanese Liquidity....Bad Signs!

by Michael J. Howell13. May 2014 17:19
According to our latest GLI index data, Japanese Liquidity has definitively weakened (64.8, or down from 91.1 last September, 'normal' range 0-100) over the past six months, led downwards by falling private sector cash flows (76.8 to 37.2 over same period). This may explain the weakness in Japanese equities. The implication is that either Abenomics is not working, or China’s economic slowdown is imparting a negative drag. This requires the BoJ to renew its easing and push the Yen lower.


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