Financial literacy is gained at YENgura's Investment University (Academia) | Episode 3 [YEN-gura]

YENKura-san Profile

Enzou. Worked as a foreign exchange dealer for over 20 years at foreign banks including Citibank (U.S.), Standard Chartered Bank (UK), and other foreign banks. Currently a top professional trader trading forex, the Nikkei 225, Nikkei options, and individual stocks. CEO of ADVANCE Co., Ltd., which specializes in delivering investment information. He has deep knowledge not only of major currencies such as the dollar and euro but also of emerging currencies, including Asian currencies. He also maintains close relationships with overseas traders and fund professionals.

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Monetary Easing Continues in Emerging Markets Worldwide

As mentioned before, the current market is flooded with money poured into the financial markets due to monetary easing by central banks around the world, pushing stock prices higher. With ongoing U.S.–China trade discussions (the first phase of agreement was signed on January 15), companies worldwide, especially major manufacturing firms, are postponing capital expenditure, and funds have shifted first into bonds, then into equities, contributing to the stock rally since last autumn.

In 2019, the European Central Bank (ECB) implemented easing in September and the Federal Reserve (Fed) in October, pausing easing at that point. However, the Fed began purchasing $60 billion of short-term Treasuries monthly from October 15, 2019, which has possibly impacted the financial markets enough to be described as QE4. This asset purchase program is planned to continue at least through the April–June 2020 quarter. This point was also touched upon in the previous edition.