Japan Economy under self destruction
Posted by admin
Gempa-Dan-Tsunami-Jepang-20112
Gempa-Dan-Tsunami-Jepang-20111
I have watched in horror when BBC news aired the destruction at above 4pm Asia Time. Onto Cnn.com’s video segment, what I saw wasn’t an 8.9 magnitude earthquake. Its the strong current, huge amounts of water pushing through roads and streets. Water current by itself is harmless, but when you have lots of it, it becomes an unstoppable force.
And I don’t need to repeat what is happening now, the Nuclear crisis. It has caused massive fleeing, and in short, affects the economic developments in Japan. Not to mention the rescue work that is still being done and snow is preventing work from going smoothly.
Now back to managing money and trading. If you had shorted the Nikkei Futures, you would have made quite handsomely. Looking at over the US listed stocks on Japan companies or Asia related stock price, it was shocking to see most of them shed at least 15-30% .
Shorting with the Japan Index wasn’t that difficult. By buying a few puts on iShares MSCI Japan Index (ETF) (Public, NYSE:EWJ), which tracks the Index for Japan, you are actually betting that the index will go down. But because this is traded over NYSE which is on US timing, it somewhat reflects both “today” for Japan, and speculating for tomorrow’s open. A peek over Nikkei 225 Future’s would give you a rough idea how the market will open, since most worldwide economic news would have been overshadowed by the uncertainty in the series of events.
And lastly, I hope things are okay for Japan and Asia, and hope they’ll pull through.