Posted on 06/03/2013 7:53:10 PM PDT by TexGrill
The Nikkei 225—Japan’s most highly cited stock index—has been on a wild ride this year. On May 22, the index was up 50% since the start of the year. But after four days of approximately 500-point losses, the Nikkei has erased 23% of its gains. The index fell 3.7% today alone.
Analysts credit a lot of Japan’s stock market rally to promises from the Japanese government and the Bank of Japan that they will create inflation and spur economic growth in a three-pronged program referred to as Abenomics. If all goes as they hope, the program would end two decades of economic malaise. But faith in these policies could be flagging. Whether or not this is the time to freak out about Japan, investors are certainly questioning their faith in Japanese stocks.
(Excerpt) Read more at qz.com ...
Well, that worked out well. What now, double down?
Gold's tanking too & we got another thread this morning with the faithful talking about buying more. For me I've found it best to not argue with trends...
Right, the trend is your friend.
What is quartz and why are you using them as a source?
There're a lot of sayings people have been educated with after various payments of 'tuition', others include 'don't fight the tape' or 'like catching a falling knife'.
My experience though is that the plunges are usually unstable and less reliable --why the VIX works using volatility as a bearish indicator. It's also why I've pretty much given up trying to make money selling short positions. Rallies are stable and corrections are chaotic.
The analogy I use is that of rain. A heavy downpour doesn’t last, but a steady rain goes on and on.
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