The Algorithm trader 🏌
Falling towards take pofit two 🧘♂... Its Algorithmic 🏌♂
Take profit two smashed 🏌♂
The Algorithm trader 🏌
Outlook ⛹♂
Take profit one met on the long run, now let's aim for take profit two 🏌♂
Why did the market crash and how is it related to Japan?
Japan has the third most important market in the world called TSE (after New York and NASDAQ) and the fourth most important economy (after the USA, China, and the European Union) with the third highest per capita GDP in the world. But its main problem is a low birth rate of 1.3 children per Japanese mother, the worst in the world.
Since there is no purchasing power, there is no competition for products and prices keep falling, leading to deflation and hence to negative interest rates.
Negative interest rates have side effects: the currency value drops but loans in Japan are the most profitable there are because there is no interest on them!
Countries around the world for many years bought Japanese bonds because it was the most profitable, but also the biggest companies.
With Japanese loans, the largest investments in the world were made, both in markets in the USA and globally.
So, when the interest rate in Japan rose suddenly, entire countries and giant companies became indebted! Because they now have to pay interest on their loans! This causes disinvestment, and since investments are withdrawn, even those who remain invested, the value of the investment decreases and now there is no money left.
And that's what's happening now in the world!
Japan has the third most important market in the world called TSE (after New York and NASDAQ) and the fourth most important economy (after the USA, China, and the European Union) with the third highest per capita GDP in the world. But its main problem is a low birth rate of 1.3 children per Japanese mother, the worst in the world.
Since there is no purchasing power, there is no competition for products and prices keep falling, leading to deflation and hence to negative interest rates.
Negative interest rates have side effects: the currency value drops but loans in Japan are the most profitable there are because there is no interest on them!
Countries around the world for many years bought Japanese bonds because it was the most profitable, but also the biggest companies.
With Japanese loans, the largest investments in the world were made, both in markets in the USA and globally.
So, when the interest rate in Japan rose suddenly, entire countries and giant companies became indebted! Because they now have to pay interest on their loans! This causes disinvestment, and since investments are withdrawn, even those who remain invested, the value of the investment decreases and now there is no money left.
And that's what's happening now in the world!
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