Japan Syndrome

The Bank of Japan announced last night that it was doubling down on its so-far-unsuccessful QE bond buying. The 10 year JGB then set a new record low yield of 0.425%. We’re going down the same path. J.P. Morgan is selling equities as you can see from the following quote:

“People should stick with equities; in fact, they should be buying more equities,” Daniel Morris, a market strategist at JPMorgan Chase & Co., told Guy Johnson on Bloomberg Television in London. Valuations “are still well below average and you still have otherwise very good fundamentals. Among the different type of asset classes equities is the one with the best potential.”

Too bad he didn’t throw in a little bond hate. Can always use a little more hate to keep the bubbles away.

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