One Thousand One Hundred Points Down For The Day

All rapidly rising markets suffer reversals -- or corrections, if you believe in "days of reckoning" and other manifestations of an unholy alliance in between finance and morality.



The performance of the Nikkei since the election has been portrayed as proof that Abenomics -- the PM's mix of big budgets, wild expansions of the Bank of Japan's balance sheet and still murky promises of structural reform -- has won over hearts and minds of the world's investors, prophesying better days ahead for this blessed land.

Today's stumble has therefore got to be causing migraines in Liberal Democratic Party headquarters.

I wonder whether the PM, when briefed about the Nikkei's soaring and then crashing today, felt the first, faint fluttering of butterflies in his stomach.

Later - Reasons for success: obvious. Reasons for setbacks: not what you think. (Link)

Graph courtesy: Yahoo! Finance