Abenomics Coming to a Market Near You

We now have the European Central Bank, The Bank of England, The Federal Reserve Bank, and the Bank of Japan all diluting the money supply worldwide. We are going to see a rise in all the world's stock markets as this cheap and easy money seeks out yield. Bubbles will be formed in a variety of asset classes. In case you are unfamiliar with the term "bubble" it is simply an overvalued asset class. The Japanese stock market in the late 1980's was a bubble. Japanese firms were fetching dizzying valuations that were way out of line with company earnings. The Nikkei 225 peaked at over 38,900 in December of 1989 and went downhill from there till April 2003 when it bottomed at 7603. So beware of cheap money coming to a market near you because it is all around the world right now and it will be flowing into risky assets. Cheap money also loves to speculate so be careful and stay tuned to the Smalltime blog for more updates on the economy and how it affects your bottom line.