Last night saw the Nikkei drop over 1500 points from its highs and down 1150 (over 7%) from yesterday’s close. BOJ injected 2 trillion yen ($19.4 billion) into the financial system to stem volatility following a circuit breaker shut off.
This is the effect of quantitative easing, the markets are overvalued because of the money being driven into it by the BOJ. This fall is just the beginning so its time to get the popcorn, put your feet up and watch this Ponzi scheme unravel. Hedge funds are beginning to unwind positions in the Nikkei and the fall will continue after a period of consolidation.