AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
The Importance of Capital Flows in Japan
If foreigners push the Nikkei to break clear through 30 came about, then it means that there's a lot of Japanese investors who will find themselves horribly misallocated. Then they will be forced to rebalance and come in behind the foreign capital longs and start buying Japan equities with Japanese capital repatriated. That chronology of capital flows matters. It's what makes a difference between a sustained period of price appreciation versus just like a quick in and out rallying crash. If foreign capital comes in and there aren't buyers behind them, then shares go nowhere, and then they dump out in the crash market. We've seen that time and time again.