Japan’s Prime Minister, Naota Kan, did little to quell fears this evening during a press conference in which he said the leakages from the 4 nuclear reactors were worse than previously believed. There are also reports of radiation readings in Tokyo. The Nikkei index is trading down over 13% as investors price in a crushing economic environment.
The S&P futures are trading down 29 points or 2.25%, the Nikkei is down an incredible 13% and the Hang Seng composite is off 4%. The downturn is being seen as 100% deflationary as JGB’s rally 1% and the USD rallies higher. The Japanese economy is at risk of becoming dysfunctional and investors are finally taking note of the contagion from the world’s third largest economy.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.