After A 25 Year Slow Roll Downhill For Japan, Has The Tide Turned?

Erik Swarts | Jun 18, 2014 03:04AM ET

Under the blue skies of the Eisenhower administration - and on the 25th anniversary of its roaring twenties Gatsby high, the S&P 500 made a final turn north and eclipsed the historic 1929 benchmark that had encompassed and defined an entire generation. Previously described in our

With Japan languishing in the back eddies of deflation over the past 25 years, it comes as no surprise of what the ECB is attempting to avoid. In a brave new world where central banks are active not just in the throes of a crisis - but in the midst of momentum, it's easy to get swept up in the hope of avoiding such fate. Our general take, however, is it's also easy to conflate causation with policy - as the efficacy of such correlations ebb and flow with a market's given structure, sentiment and positioning. The long and short of which would indicate that time is the great revelator, and although the ECB's actions are received better late than never, the reality is the markets - like water, will gravitate to the path of least resistance in the face of an incoming deflationary tide.

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Written By: Erik Swarts

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