Still a good arbitrage: Long Japan/ Short China
waiting for a short setup against China A50 and a long setup on Nikkei 225.
Let'see how it goes.
Traders who did the Long Japan/ Short China trades last year earned a lot. Will this combo still be the most beneficial trade for equity traders?
Currency
these 2 economies are gonna cut their rate.
The difference is China's gonna cut their rate regardless of fed's policy, while Japan will be released from the high interest difference between USD/JPY.
Economy
This part is tricky. Japan enjoyed 6% inflation since the "Big Inflation" during the post-Covid international inflation, which is the dream that Japanese authority chases for decades.
Price index and relative cheaper interest for leveraged capital is the 2 biggest Will it continues to grow
As for China, I will write a new article soon
Let'see how it goes.
Traders who did the Long Japan/ Short China trades last year earned a lot. Will this combo still be the most beneficial trade for equity traders?
Currency
these 2 economies are gonna cut their rate.
The difference is China's gonna cut their rate regardless of fed's policy, while Japan will be released from the high interest difference between USD/JPY.
Economy
This part is tricky. Japan enjoyed 6% inflation since the "Big Inflation" during the post-Covid international inflation, which is the dream that Japanese authority chases for decades.
Price index and relative cheaper interest for leveraged capital is the 2 biggest Will it continues to grow
As for China, I will write a new article soon