Post-Election Nikkei Drop? Yep. Called it Right Here.

On Sunday, July 21st, in the wee hours of the election day in Japan, before polls opened, I wrote in: My Serious Commentary on Today’s Japan Elections (And Some Hot Babes!):

Today there is a big political election going on in Japan (look for the Nikkei 225 to start dropping after today’s election is over!)

Several local stock brokers and the like blasted me about how great “Abenomics” is, etc… They also took umbrage at the utter idea that the Bank of Japan and the Japanese government would collude to manipulate stock prices…


I just wonder what planet these people are living on?

The results a week after the election? Well, I think a 3.78% drop in a week is a pretty poor performance. See for yourself:

The fact of the matter is that Abenomics is doing all sorts of cosmetic things to make the economy look better, But the main and goal of creating a trade surplus in order to turbo-charge the real economy is a complete disaster.

Exports indeed increased 7.4% in June, unfortunately at the same time, imports jumped 11.8%, and the balance of trade stook a 180 degree about-face from surplus in June 2012 to a deficit of ¥180 billion ($1.8 billion). The data doesn’t lie: