Kathy Lien
BK Asset Management
On August 5th, the Nikkei, Japan's main stock index, took a nosedive, dropping 12% and causing the U.S. Dow Jones Industrial Average to plummet over a thousand points. But the drama didn't stop there—on Tuesday, the Nikkei bounced back, surging 10% and triggering market circuit breakers that halted trading for a while.
Today, I'm diving into whether these claims are true, how Japan's wild market swings affect the U.S. and global financial markets, predictions for the Bank of Japan and the Federal Reserve, and most importantly, how you can navigate trading in these hyper-volatile times.
Past performance is not indicative of future results. Trading forex carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts.
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Policy mistake, Mideast or Yen
Which one of these is the key culprit? Failure to read the weakening economy and risk-taking negative consequence of yen reversal – the upcoming weeks rather days will reveal the relative weights between these two leading factors behind the 1000 plus slide in Nasdaq and similarly badly hit S&P 500, Russell 2000, cryptos and commodities.