The Japan Retail Trade | Exploring Markets

The Japan Retail Trade

Japan's stock market is up 30% year-to-date. The S&P 500 is up 8% year-to-date.

 Japan's market has exploded. It is going up for one reason. The central bank is pushing down government bond yields while simultaneously increasing the rate of the inflation. This two step process is forcing long-term investors into alternative assets and stocks.

At the crux of the Japanesse stock market boom is the massive amount of savers who had previously been invested in bonds who are now "rotating" into stocks and other riskier, higher yielding assets. One chart to rule them all: