Bank of Japan Ends Bond Buying, Shifting Stimulus Burden to Western Banks
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The Bank of Japan has ended its aggressive bond buying program and easy money policies, removing support for global markets. This shifts burden to Western central banks to provide stimulus.
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With less support from Japan, Western central banks have less room to wait for more evidence of economic weakness before cutting rates/restarting QE.
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Commodity prices are rising again as the dollar weakens, concerning for inflation.
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Option skew shows smart money is already well-hedged against downside tail risk in stocks, implying potential for market weakness ahead.
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3M completed spinoff of healthcare unit Solventum Corp, distributing 1 SOLV share for every 4 MMM shares owned. We continue to hold both companies.