Japan's efforts to stimulate the economy with aggressive monetary policy has sent the Japanese stock market surging as investors see it as a way to ride inflation.
Below is a chart from Bloomberg BRIEF economist Michael McDonough, which shows that foreigners are buying up Japanese stocks like crazy. In fact, the buying is tightly correlated to fluctuations in the
"Year-to-date Japan has seen about $39.7 bn in net foreign institutional equity purchases (up 100% from last year)," tweeted McDonough.
However, hedge funder Kyle Bass warns this is a dangerous game being played.
"I think it's going to be very disappointing for those who own those equities, and I kind of think they are "macro tourists,"" he said in an interview with CNBC.
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