• HEDGEYE’S MARKET BRIEF
    Our FREE Investing Newsletter
    Get Exclusive Summer Sale Discounts

    By joining our email marketing list you agree to receive marketing emails from Hedgeye. You may unsubscribe at any time by clicking the unsubscribe link in one of the emails. All Hedgeye products and services are subject to Hedgeye’s Terms of Service available at www.hedgeye.com/terms_of_service

If there is one chart showing the most pronounced country level stagflation of relevance, it's this one. Japan reported a nosebleed level of producer price inflation this morning - a 27 year high in fact.

At +7.1% year over year reported for the month of July, you can see where this registers on the chart below, particularly relative to Japan's newly realized negative industrial production growth rate.

I realize that Japan is "cheap", but countries with these dire fundamental underpinnings can get a lot cheaper as internally generated levels of cash flow erode.

*Full disclosure: I remain short Japan via the EWJ (etf) in my fund.
KM
Chart by Andrew Barber, Director