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Thursday, May 9th, 2013
the snake

13 0510 nikkei and yen

The above chart marks the fastest repeat visit of any chart on this site; the first instance of it appeared here less than three months ago.  The image of a snake’s mouth has grown ever wider since then.

The jaws are the Japanese stock market, as measured by the Nikkei, and the yen.  The flitting tongue is the Japanese market in dollars.

It is worthy of a repeat this soon because it is affecting so many aspects of the investment world right now.  There are adjustments and adaptations and anxieties aplenty, all because of this chart and the policies it represents.

The lines are indexed to 100 on November 14, so the Nikkei is up 65% since then.  If you are interested in a longer view, the same three series are shown in the chart at the bottom of the page since the start of 1976.  It would take a good long while to review all of the chapters in the Japanese economic saga since then.  The latest one could never have been imagined twenty years ago.  (Charts:  Bloomberg terminal.)

emotional finance

How does your investment manager feel as he goes about his job?  There seems to be a widespread belief that they are much less prone to “humanness” in decision making than the rest of us.  A CFA monograph provides a window onto their world and the realities of emotional finance, covered in my latest essay.

new issue, old issues

The latest edition of The Prudent Fiduciary Digest is out, and it features great reads on ways of addressing “the loser’s game” that asset owners tend to play, assessing “the blame game” at investment manager organizations, and the battle between momentum and value over time.  (The newsletter is free.  Sign up and view past issues here.)

13 0510 nikkei and yen ~ long-term