BOJ Asset Purchases: Is Japan Sowing Seeds of Next Asset Bubble?

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Japan’s Nikkei index is on fire. In just the past six months, the benchmark is up 55% as of this writing. Why? Pretty simple: New Bank of Japan Governor Haruhiko Kuroda has announced that the Bank of Japan (BOJ) will begin purchasing approximately ¥7 trillion worth of bonds annually in a major new quantitative easing program. In short, Japan will be printing gobs of money and all of this money has to go somewhere. That may look like great news for investors who hold Japanese equities, but from where I sit this has all of the classic makings of one big investment bubble. Read More

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