But if you invested USD three years ago following Buffett’s hype, you lost 5% because the yen crashed, thank you hallelujah BOJ.
Japanese, Canadian, and European banks started to confess. And for over a year, huge losses have hit investors, not banks.
This cannot possibly happen to US markets because US markets are special?
China and Brazil shed large portions of their holdings, but the top financial centers loaded up.
They will never hand full control over yields to the market.
As China unloaded Treasury securities and Japan propped up the yen, other countries loaded up.
An important thing to keep our eyes on these days.
In other words, after a spike, the dollar dropped back to the higher end of the normal 20-year range. But the yen is a sloppy mess.
BOJ’s Ueda promises to fuel inflation further, hopes for wage growth. Strategy: let raging inflation bring Japan’s debt-to-GDP ratio back in line.
Bank of Japan clings to negative interest rate policy and yield curve control as inflation spreads across the economy.