🚨 The markets are spooked.
The stink from the deteriorating fundamentals and overleveraged consumers are seeping. The BOJ's rate hike just sped up the process.Now, the markets are beyond spooked, BOJ will raise interest again and it had happened before – a reality check 🧵
— Unicus (@UnicusResearch) August 10, 2024
2. Japan flip-flopped and decided not to increase any more interest rates. However, we believe that Japan will raise another .5% by the end of the year. Now, to save Japan, BOJ have to rug pull the entire world by raising its interest rates again. BOJ's flip-flop to not raise any… pic.twitter.com/S0XzhKxPSi
— Unicus (@UnicusResearch) August 10, 2024
4. Next, the U.S. tech bubble burst, hitting Japan's export-reliant economy. Eight months later, the BOJ reversed course, rolling out a new experiment, quantitative easing: flooding the market with yen to support the economy and fight deflation. By February 2007, it had raised…
— Unicus (@UnicusResearch) August 10, 2024
6. We have been entrenched in most of the 2Q conference calls across various industries. The conference calls had some common themes. U.S. borrowers on lower incomes are increasingly struggling to keep up with their loan payments.
— Unicus (@UnicusResearch) August 10, 2024
8. Bottom line: There is a growing fear in the market. Even if rates get cut, the economy won't grow for quite some time. Rate cuts are great psychologically for the markets, but just like rate increases, they take 12-18 months to trickle down. To learn more, follow us on…
— Unicus (@UnicusResearch) August 10, 2024