This is a possible concise summary:
The conversation is between two financial experts who discuss the implications of the FOMC meeting and the interest rate hikes for the US and Japanese stock markets. They analyze the different views and expectations of the FOMC members and the market participants, and they share their own strategies and opinions on how to invest in stocks. They also talk about the challenges and opportunities for the Bank of Japan and the Japanese economy, and they emphasize the importance of forward guidance and communication for monetary policy. They conclude by saying that they are optimistic about both markets, but they think Japanese stocks are easier and have more potential.
Here are the key facts extracted from the text:
- The futures market is pricing in something like the median of the hawkish group of FOMC members.
- The FOMC is divided into four groups: doves, moderates, hawks, and super hawks.
- The market reaction and media analysis are written in a very hawkish manner after the FOMC meeting in September 2021.
- The last time the FOMC gave forward guidance for the final phase of the interest rate hike was in 2018, and the intentions of the FOMC members changed drastically between September and December 2018.
- The PCE core inflation rate is highly sticky and it is unlikely to fall below 4% by the end of 2021.
- The expected PBR of Japanese stocks is about 1.3 times that of the G7 average, and it is difficult to exceed 1.7 times.
- The Bank of Japan needs to give forward guidance to the Japanese people as a whole, not just to the financial market.
- The Bank of Japan also needs to equip itself with weapons to be on par with the ECB, the Fed, and other developed countries.
- The TSE reforms and the change of the Bank of Japan governor are some factors that can affect Japanese stocks in the future.
: Source: https://www.newscientist.com/article/2336385-korean-nuclear-fusion-reactor-achieves-100-millionc-for-30-seconds/
: Source: http://curious.astro.cornell.edu/about-us/54-our-solar-system/the-sun/interior/206-how-hot-is-each-one-of-the-layers-of-the-sun-beginner
: Source: https://nssdc.gsfc.nasa.gov/planetary/factsheet/sunfact.html
: Source: https://en.wikipedia.org/wiki/Solar_core