$BTC $ETH $BNB
Oh no, the "Mrs. Watanabes" are once again in the spotlight! Legend has it that they hold trillions in assets, using zero-interest yen to frantically buy U.S. stocks and bonds. Now the Bank of Japan has raised interest rates to 0.75% in December (the highest in 30 years), the interest rate differential has shrunk, and the arbitrage printing machine has stalled. Is everyone collectively "running away" by selling Apple and Tesla, crashing U.S. bonds? Is the global financial system about to explode?
Wake up, bro, this headline is too harsh. A bit of background: Yes, Japanese retail investors (mostly older gentlemen using apps now) are reducing their overseas assets, retail positions are showing some movement, and the yen has fluctuated from 157 to around 156, increasing market volatility.
But "tens of trillions tsunami"? Nonsense! The retail scale is only a few hundred billion dollars, and institutional adjustments are slow and orderly. Japan is still the top holder of U.S. bonds (over $1.1 trillion), with no large-scale sell-off. The global stock market correction is mainly due to the Federal Reserve's dovish expectations falling short and JGB yields skyrocketing, not a nuclear bomb triggered by housewives.
In simple terms: there are some small waves, far from a tsunami. Wall Street alarm? At most it's a yellow light, don't panic, have a cup of tea and continue to watch USD/JPY, and don't play with high leverage and burn yourself～😂
