Japanese equities witnessed their initial weekly outflow in more than three months, coinciding with record yen net shorts fueled by an assumption of invincibility against adverse events, underpinned by the belief in central banks’ bailout capabilities. This perception of an endgame scenario, wherein risks are dismissed in favor of reliance on central bank interventions, underscores a potentially precarious market sentiment. As investors wager on the notion of an infallible safety net, the ramifications of such complacency amidst evolving economic uncertainties remain uncertain, amplifying concerns about the sustainability of current market dynamics.
Japanese Stocks saw first weekly outflow in more than 3 months pic.twitter.com/QjTFXNaWXJ
— Win Smart, CFA (@WinfieldSmart) April 15, 2024
Record Yen net shorts on the assumption that nothing bad can happen. And if something bad did happen, central banks can bail everyone out.
The endgame assumption. pic.twitter.com/Xb9nvf36Td
— Mac10 (@SuburbanDrone) April 15, 2024