Ever since the credit market crisis in 2008, the world has been in an extraordinary period of central bank intervention. As QE3 comes to an end, analysts are looking to a return to normal. But what is normal?
"We have gone in and taken the assets away from the competent people, given them to the incompetent people and said to the incompetent people, now you compete with the competent people with their money. It’s absurd.”
The Japanese yen and benchmark Nikkei 225 equity index both broke out of significant consolidations last week. The moves are highly related; in fact, the negative correlation between Japanese equities and the yen has been incredibly consistent over time.