In today’s briefing:
- Normal Pullback, or Something More?; Watching Resistance on DXY and 10-Yr Treasury Yield; Value Buys
- Increasing Attention to the Role Played by Individuals in the Rising Trend of Stock Ownership
Normal Pullback, or Something More?; Watching Resistance on DXY and 10-Yr Treasury Yield; Value Buys
- Global equities are under some pressure after Fitch downgraded the United States’ credit rating to AA+ from AAA.
- We expect that this is a normal 3%-6% pullback to the 50-day MA or major $93 support level on the MSCI ACWI iShares MSCI ACWI ETF (ACWI US) .
- $TNX is below 4.1%-4.3% and DXY remains in an 8-month downtrend; as long as this remains true, we’d buy on a pullback to the 50-day MA and/or $93 on ACWI-US
Increasing Attention to the Role Played by Individuals in the Rising Trend of Stock Ownership
- The percentage of stockholdings by individuals will continue rising. Their tendency to buy-on-decline will continue to serve as a cushion in times of falling stocks as well as voting behavior.
- Now that the BOJ’s ETF purchases have subsided, an increase in trust bank stock holdings is not expected. A limited increase in pension assets is also expected.
- The reduction in cross-shareholdings has reduced the shareholding ratio of corporations to 19.6%. Meanwhile, corporations repurchased total of 5,790.7 billion yen in FY2022, indicating that share repurchases have taken root.
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