21/08/18

BOJ Issues "Red Hot" Warning: Stocks May Drop And We Won't Be There



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BOJ Issues "Red Hot" Warning: Stocks May Drop And We Won't Be There
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Remember when a 0.2% drop in the stock market was considered large enough to merit central bank intervention? If you can't that's ok: it was never meant to be the case. Only that's not true in Japan: in recent years, every time the Japanese Topix index dropped more than 0.2% (a fifth of a percentage point), the BOJ would step in and buy ETFs to prevent what one can only assume would be a crash.

Only, Mrs Watanabe and other investors are getting increasingly nervous because that's hasn't been the case recently as the BOJ appears to be growing more comfortable with larger drops in Japan's stock prices, a sign which .....

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