It is very fitting that on today’s April 28th anniversary of the bull market, the day that officially makes this the second-longest “bull market” in history, the market got a stark reminder of just how it got there: through constant and relentless central bank intervention, which has been “beneficial” to stocks for the most part, however last night was anything but.
Less than one week after the BOJ floated a trial balloon using Bloomberg, that it would reduce the rate it charged some banks which set off the biggest USDJPY rally since October 2014, we are back where we started following last night’s “completely unexpected” (for everyone else: we wrote “What If The BOJ Disappoints Tonight: How To Trade It” hours before said “shock”) shocking announcement out of the BOJ which did absolutely… nothing.
Related Article:
Japanese Bloodbath After BoJ Disappoints – Nikkei Drops 1000 Points, USDJPY Crashes
http://www.zerohedge.com/news/2015-10-29/boj-owns-52-entire-japanese-etf-market-now-kuroda-wants-more
When an entity that can “print” as much “money” as it desires and then uses that power to manipulate a market that market, in essence, ceases to function as a market. At that point you basically have a casino with the average investor playing against the house.
So true.