What has led to this shift in lower tech value and dollar?
It is the market's factoring in a Trump victory -which led to its belief that a Trump administration will lead to lower dollar and higher inflation (tax cuts, tariffs) - so tech falls on higher yields (which we saw on the 2yr yield) while dollar failed to rise and actually dropped against the Yen despite rising yield.
As I had been indicating, Wall St has become a GIANT CASINO, the old idea of investing for too long (Better for Longer) is passé - seniors/boomers see the world from their own lens and invest in the manner they grew up being accustomed to - but the WORLD HAS MOVED ON, IT IS A DIFFERENT ONE TODAY, and soon there will be a big wake up call.
When you have done well investing over a long period, you swear by Time in Market, but if you had bought at the probable peak (like now or soon) and you are underwater for years and possibly even after market recovery, you could believe in Time the Market. The reality is that neither are perpetually true. We can be as long invested in the market during a structural bull but ought to know when to step aside when the market turns into a structural bear. And if one does not know how to understand the cycles, it is best one gets acquainted with the macros (economy & markets).
And an investor should be looking at what comes ahead, not what already happened, and not dwell in the past. But seniors/boomers, we tend to live in the past. What we think or believe does not matter, it is what is unfolding before our eyes. The world is a crazier place I am sure you agree. So we have to adapt. We don't have to necessarily accept but we have to recognise.
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The Japanese Yen is up against the US dollar to its strongest level since mid-June.
The USD-JPY currency pair is down over 3% since Thursday after hitting a 38-year high following another round of intervention by Japan’s Ministry of Finance.
Japanese authorities reportedly spent $22 billion on Thursday and Friday to prop up the yen, according to Bloomberg.
This comes after Japan spent a record $62 billion to support the currency between April 26th and May 29th.
Over the last 12 months, the Yen has declined by ~12% and has been the worst-performing currency of G10.
