Economics

A Warning Signal for Global Stock Markets Is Flashing in Japan

  • Defensives overtake cyclicals as multiyear Topix rally slows
  • This ‘could be a leading indicator,’ JPMorgan Asset says
Phalanx Capital Management CIO Chris McGuire discusses the Japanese economy and addresses the strengthening yen.(Source: Bloomberg)
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Morgan Stanley calls it “the end of easy,” that witching hour in global stock markets when economic growth is slowing, the Federal Reserve is tightening, and inflation is ticking up. After a long bull run, strategists the world over are getting nervous -- and watching for the top.

And over in Tokyo, a warning is starting to flash.