The Haunting TOPIX Chart We Can't Let Go Of

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		Tech Media Wall Street Markets Strategy Sports Lifestyle Politics Europe Video Latest Thursday, August 4, 2011 The Haunting TOPIX Chart We Can't Let Go Of Politicians like to compare America to Greece, but in reality the TOPIX, with its long, deflationary slog is our best historical analogy. A chart we've run before, but which seems particularly relevant, is the above chart from Morgan Stanley, which shows the TOPIX -- post bubble -- responding to various stimuli and counter-stimuli. The basic lesson: throughout the long bear market, stocks always popped after fiscal and monetary stimulus, and worsened when policy makers did the opposite. Given how this market has coincided with a move towards de-stimulus (the debt ceiling/fiscal consolidation deal) we can't help but think this is playing out again here. Read » Also On Money Game Today: Next Stop: S&P 1130? And Tomorrow Should Be Epic Too The Real Reason The Debt Ceiling Fight Was Horrible News For Markets Hedge Fund Billionaire Phil Falcone: Today's Crash Is Just A Knee-Jerk Reaction To Europe Advertisement CHART OF THE DAY: Here's The Broken Neck Bone That Everyone Is Talking About CHART OF THE DAY: The Market Does Something It Hasn't Done Since The Worst Of The Financial Crisis CHART OF THE DAY: The Export Economy Can't Save Us Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.careers@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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