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.
![Cullen Roche](https://pragcap.com/wp-content/uploads/2022/01/Headshot2022-1-144x144.png)
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.
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