Japanese stocks – Lookout below

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Take a look at the TSE Mothers Index which is a market cap weighted index of high growth and "emerging stocks" (early stage companies) in Japan.

This is high-beta, heavy retail and pure steroids, crack cocaine, pick your metaphor. With a -14% move lower in the last 2 days.

The P/E of the index is now 80x.  Talk about getting frothy, this index is a great barometer for understanding what's going on in the momentum space with local investors.

Speaking of Japanese equities, anyone notice that the Nikkei is trading at 28x earnings? Note the rally in JGBs overnight and the move in stocks.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

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