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Three Sunday reads

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  • jakoba
    , contributor
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    No.

     

    I think the next crisis will come from US, not Japan. This is the overpriced market now. Foreigners have started to sell their US Treasuries. Massively last week, but the selling had started already in December 2013. Don´t believe WSJ et al when they say this is only the Russians selling.

     

    When WSJ writes: «A spokesman for the New York Fed declined to comment. Russian officials couldn't immediately be reached for comment.» it is in my opinion a sign that somthing else is going on.

     

    Look at P/E ratios. Japanese companies had higher earnings growth over the past years than their US counterparts, and yet the Japanese stock market (EWJ) is up a meager 11%, whereas the S&P is up 33% over the past two years.

     

    P/E ratios of Japan (contracting)

     

    March 13, 2014: 14.8
    March 13, 2013: 17.0
    March 13, 2012: 17.9

     

    P/E ratios of United States (expanding)

     

    March 13, 2014: 18.8
    March 13, 2013: 17.7
    March 13, 2012: 15.9

     

    (Source http://on.ft.com/1iRgWVD)
    16 Mar 2014, 09:30 AM Reply Like
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