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
2019/5/4. The unbelievable: Bank Of Japan is still buying Japan ETF.
Bank Of Japan(BOJ) is buying Japanese companies’ stocks via ETF.
This is price keep operation(PKO).
PKO must be done in recession. But Japan gov announces that economy is better than past.
PKO is being done by BOJ.
So something is wrong between Japan gov’s saying and BOJ’s action.
“Talk is cheap.”
Japan gov never tell the truth… So I imagine the future.
The reasons BOJ is buying ETF are:
(1)To give Japanese companies money and credits
(2)To protect Japanese companies from buying out by foreign company
(3)To protect Japanese elites (members & friends) from shareholders lawsuit
(4)To make the economy inflation and be ready for inflation
(5)To keep stock price higher and increase money in Japan
First, BOJ might start buying ETF for (5), then BOJ’s action become that it is impossible to stop.
So BOJ can’t stop buying ETF, not BOJ doesn’t stop buying ETF.
If BOJ stops buying ETF, the its impact will be big. Nobody can buy stock as BOJ did.
When does BOJ stop buying ETF?
My opinion is within 1-2 years, but maybe.
And volatility of Tokyo stock market is being lost. So stock investment won’t be good in the future.
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