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January 18, 2006
Could be a rough one today kiddies. . . . or a banner day . . . who knows???
Somethings brewing over in the Pacific, so the powers that be took the pot off the stove so things could cool off.
Enough dancing around the issue for you?
Ok, here it is. The Nikkei got shut down overnight because of a massive sell-off triggered when the Japanese government raided the offices of the internet company, Livedoor. The sell-off amounts to $300 million in assets in the last three days, or roughly the gross domestic product of Sweden. That's quite a bit of cash that doesn't have a home right now.
The sell-off has triggered a shut-down of the Japanese exchange as it approached it's daily volume limit.
So what does all this mean to us here in the States??? Who the hell knows. There's alot of money out there that needs a place to go, alot of investment capital is up for grabs, but it's skiddish capital at best. I expect we'll get alot of that capital flowing into U.S. markets and companies in the next few days and we'll see a bump (after what will probably be a VERY shaky start to today's trading), then some profit taking and the Dow will settle into a solid 11K plus stance. I think what's bad for our friends in the Nikkei, in THIS case, should be good for us.
We'll see though, won't we.
IMAGE: Market Close 1-18-06
If you're curious who Livedoor is, here's their translated portal/homepage.
Oh yeah. . . I am not a stock-broker, nor do I play financial advisor on this blog. If you take any of this for "financial advice", you are an idiot and had better not come crying to me. . . EVER!
--Jason
UPDATE: Well, with a little more than half the trading day to go, doesn't seem like my prediction is panning out. I'm surprised that such a dramatic event in the Japanese exchange hasn't had a more noticible effect on our market, either positive or negative. Twenty point swing by mid-day just doesn't seem to match the chaos the Japanese are experiencing. I guess that just shows how stable and robust our market really is. See why I'm not a broker?
-JC
Posted by JasonColeman at January 18, 2006 4:31 AM
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