Are the Japanese losing faith in their stock market?
7 years ago, Shinzo Abe launched the three arrows of Abenomics, promising that by drastically expanding the Bank of Japan’s balance sheet and buying every ETF and bond available would prompt a resurgence in the Japanese economy and crush the so-called « deflationary mindset. »
As is clear from the explosion in the BoJ’s balance sheet relative to the Japanese GDP, Abenomics has been a dismal failure.
Are the Japanese losing faith in their economy and its economic overlords omnipotence?