Mixed Day and BOJ a Big Time NZSP
What may be considered an otherwise lack luster trading day, maybe with the exception of Gold and Silver, where it seems some fresh buying may be nibbling at another run here, let’s look at the BOJ shall we?
The data we want to focus upon is this juicy number ¥45.1 Trillion! For you US Dollar only crowd, that’s a meager $434 Billion, and it represents the value of the Bank of Japan’s equity holdings.
Now we talked about these CBs last week, referring to their QE programs and aptly calling these entities for what they are Non-Zero-Sum-Players or NZSPs and if you read that somewhere else, please tell them Magnelibra Econemotions said it first!
Anyway for those curious as to how equity markets can rise, all the while basic organic economic fundamentals erode, well look no further this should be all the evidence one needs:
So call it what you will, QE, Rigging, Justified Support, Supplemental Assistance for the Haves. It doesn’t matter, remember MV = PQ and that’s all that matters, Covid, Unemployment, things of the macro economic fundamentals of the past, toss them in the dust bin of history (for now). This is the “New and Improved Normal!” Just don’t show the fundamental economists this chart from Yardeni Research:
Alright enough beating the dead horse, we know the trick its QE and its not going anywhere, so why bother! So let’s get to today’s settles for the markets Magnelibra covers:
As you can see the Metals had a very good day! Guess someone didn’t like all that money printing after all! No that’s not the real reason, or maybe it is, whatever the case, the fiat/debt construct has become the hammer of choice and everything is a nail!
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-Magnelibra Econemotions
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