Inside the Tokyo Whale's Unstoppable Rise

The Bank of Japan (BOJ) has become a significant player in the stock market by increasing its stakes in companies through ETF purchases. This move positions the BOJ as a major shareholder in many companies within the Nikkei 225. The BOJ's actions have influenced market dynamics, pushing investors towards riskier assets. Despite not having voting power, the BOJ's large holdings raise concerns about its influence on corporate governance. The strength of the yen facilitates acquisitions, as seen with SoftBank's purchase of ARM Holdings. The BOJ's activities in the bond market have also led to increased market volatility.

What is the primary goal of the Bank of Japan's increased ETF purchases?

• To decrease the value of the yen

• To reduce the number of public companies

• To boost the Japanese economy

• To become the largest shareholder in the S&P 500

How does the strength of the yen affect the BOJ's purchasing strategy?

• It facilitates the purchase of foreign companies

• It has no impact on their strategy

• It makes it harder to buy foreign assets

• It weakens the BOJ's influence in the market

What concern do people have about the BOJ's large stakes in companies?

• It might lead to higher taxes

• It could undercut efforts to make companies more accountable

• It will increase the number of public companies

• It will decrease the value of the yen

Which market might be affected similarly to the JGB market due to the BOJ's actions?

• The cryptocurrency market

• The real estate market

• The commodities market

• The stock market

What effect has the BOJ's activity had on the government bond market?

• Increased trading volume

• Decreased market volatility

• Created a distortive effect

• Reduced the number of government bonds