$NASDAQ Composite Index(.IXIC.US)
Based on the following views, are there potential speculative opportunities for buying high volatility and high yield? Thinking...
Excerpt from: BCA Research Chief Strategist Dhaval Joshi
As the U.S. stock market continues to hit new highs, investors naturally want to know where the biggest risks in a bull market might come from. Unfortunately, most people are looking in the wrong places.
The biggest risk in a bull market is not a U.S. economic recession, nor persistent high inflation in the U.S., nor insufficient stimulus measures in China, and certainly not a recession in Europe. The biggest risk in a bull market comes from Japan.
Japan's deeply negative real interest rates are unprecedented and unsustainable.
When all current circumstances are combined, the risks facing the market are immense. First, extreme economic or financial situations are difficult to sustain. Second, investors have not noticed these unsustainable extreme situations. Or they are turning a blind eye to them. Speaking of investors turning a blind eye to unsustainable extreme situations, Japan is a typical example.
Japan's deeply negative real interest rate is currently -2.3%.
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