It’s too early to panic, let the froth flow out
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Don't blame Japan. Don't be overwhelmed by the US job numbers. And, learn to live with the periodic exploits of a seemingly endless cast of zealous, mercurial characters in the Middle East. These are just good reasons and strong triggers, probably transient, for large sophisticated international investors to pull back from a market that most felt had long run ahead of reality. Japan had dropped abundant hints that interest rates would inch up: a semblance of normalcy in monetary policy had to return; fears of inflation were building up; and, outflow of yen (to bet on stocks) amid a drop in financial savings can't go on. It was only a matter of time that the yen had to get pricier. Over the years yen and the Swiss franc, thanks to low or near zero interest rates, had come handy to the big boys of the world market to play around with borrowed money. That arithmetic comes under stress when yen becomes costlier, as it's beginn...