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Most of the discussion trying to determine if the U.S. is Japan 20 years later focuses on the economy and the stock market. However, one of the biggest and most persistent correlations between Japan and the U.S. are the Japanese Yen and the U.S. 10 Year Treasury Yield. I think it is essential to really try to explore this relationship to help determine “How Japanese are we?” With the US $ in decline, it is hard to imagine the continued persistence of this dynamic.
From TimelyPortfolio |
For additional thoughts on Japan, please see my post Japan Intentional or Accidental Pursuit of Deflation.
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