Japan continues to rally as it breaks out to new 29-year highs.
And just think, the Japanese Nikkei225 can rip another 40% from here and still not get back to its highs from the late 1980s. That’s how long it takes a bubble of that magnitude to correct itself.
Let’s remember, at its peak in 1989, the real estate value of just one single park in Tokyo was worth more than all of the real estate in the state of California combined. I’ve been to that park. It’s ok I guess. But not worth more than all of Cali, quite obviously.
So here’s what that Nikkei chart looks like today: [Read more…]