@KobeissiLetter Historical Precedents: Secular Bull Markets
The comparison to 1982–1990 is the most striking. During that "Golden Era," Japan saw a simultaneous appreciation of its currency and its equity markets.
Japanese markets are making history:
The correlation between the Japanese Yen and the Topix stock index just flipped positive for the first time since 2005.
This means both the Yen and Japanese stocks are rising together, a rare historical signal in this market.
The shift comes as the Yen has strengthened +1% against the USD over the last year while the Topix index has rallied +38%.
Historically, such a pattern has typically occurred during secular bull markets like Japan in 1982-1990, Germany in 1985-1995, and China in 2000-2008.
Keep watching Japan.