I wrote Python code which shows Correlation between NASDAQ price, Corn and Gold(Corr=0.945). Corn and Gold are best mix I have found. https://gist.github.com/Kouhei-Takagi/a1a9b073f6cd6dacb7eb1ea871d8fd3c I changed some important parts. https://gist.github.com/Kouhei-Takagi/5becaf7c3a24d63ac9c56856e81297f2
Japanese economy at 2007 and 2018 are very similar.
There are 3 points to be thought as so.
1)Bank Of Japan(BOJ) wants to stop monetary easing.
2)Some economic bubbles happens in Japan by excess money.
3)Politics & Society don’t change anything from 2007 to 2018.
1)BOJ
BOJ wanted to stop monetary easing at 2007. After stop, the subprime loan was crashed. Low interest money flew to the USA, and when the flow stopped, the highest interest rates loan was crashed by stopping credit bubble.
Now, the lowest interest rate money is flowing to USA from Japan.
(Mizuho Targets Lower-Rated Firms in U.S. Investment Banking Push:Japan edition
2)Bubbles
At 2007, some college students earned by stock bubble.
At 2018, some young people earned by crypto currency.
This type of new riches are orthodox before bubbles ends.
3)Politics & Society
Politics & Society are still traditional. This meaning is that the traditional methods are still there. The methods are “Trickle Up”, not “Trickle down”.
Trickle down: an economic theory that advocates reducing taxes on businesses and the wealthy in society as a means to stimulate business investment in the short term and benefit society at large in the long term.
Trickle up: the convert version of trickle down. Taking from poor & weak people.
These 3 points reminds me the Japanese economy is ending.
I don’t know when BOJ stops monetary easing, but I think it’s near. The USA president Trump won’t accept weaker YEN(Japanese ¥).
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