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Nikkei extends rally to 4th straight day; another 29-year high

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I often scratch my head at this. The fact is, the stock market is not an accurate guide to the health of any particular country's economy. Just because the Nikkei and other indices are coming out with record highs, the worker-bees, here and abroad, arent getting squat!

7 ( +8 / -1 )

 the worker-bees, here and abroad, arent getting squat!

The ones here are if they set up a NISA and/or IDeco account, which the govt has been urging them to do. Count me as one. My Nikkei 225 fund is up 75%. My ideco was set up in January and is up over 10%. Not bad for tax-free accounts!

-4 ( +1 / -5 )

House of cards.

4 ( +6 / -2 )

A volatile stock market is a bad stock market.

Hardly anyone aside from these stock holders are sharing in the "joy" of any of this.

When it hit this high back in '89/'90 everyone was sharing in the wealth. No everyone's in desperate straits.

0 ( +1 / -1 )

This thing has legs my friends...

-1 ( +0 / -1 )

Not bad for tax-free accounts!

One takes what one can get, but it’s a shame all investing is not tax-free, for it is investment that creates more jobs.

If it were tax-free perhaps there might be an effect equivalent to the BOJ’s massive purchases even, it’d be interesting to know.

Making it completely tax-free is the sort of move that might lead me to invest in Japanese markets. I cannot bring myself to, seeing the central planning policies that come out of the government, and the possibility of the BOJ no longer playing ball.

-2 ( +0 / -2 )

Just because the Nikkei and other indices are coming out with record highs, the worker-bees, here and abroad, arent getting squat!

I disagree. With interest at or close to zero, there are huge incentives for those "worker bees" to take out bank loans to start investing in the Nikkei. There has never been a better time. Up 13% this year, should finish conservatively up 15%, and one could project a 25 % increase in 2021.

A lot of people can and will actually quit their jobs and trade from home full time. Beats being a worker bee!

-1 ( +2 / -3 )

Rich people playing Russian roulette

-1 ( +0 / -1 )

With interest at or close to zero, there are huge incentives for those "worker bees" to take out bank loans to start investing in the Nikkei. There has never been a better time. Up 13% this year, should finish conservatively up 15%, and one could project a 25 % increase in 2021.

Well yes perhaps (?), but over the long term the Nikkei is straggler compared with other markets, which have double, trebled, quadrupled, etc over recent decades. E.g they have been hitting all-time highs a lot of the time. Versus the "highest in 29 years" Nikkei 225.

The Dow Jones index (for example) closed above 30,000 for the first time ever, this week. Back in 1990 it was circa 5,000 - 6,000.

Another more exotic example, is the NZX50 out of New Zealand. Looks like that has gone from 2,000 to above 12,000 over the past 17 years.

The FTSE looks to have done about double since 1990.

I mean sure many vehicles are better than leaving cash with a bank, but there are many vehicles to choose from and worker bees need not wed themselves to the market of the country where they reside. They may reside there, but their capital can go to the end of the golden rainbow, wherever it might be

A lot of people can and will actually quit their jobs and trade from home full time. Beats being a worker bee!

Working and earning money, then investing that money is the way to go for almost everyone.

1 ( +2 / -1 )

@fxgai

"...but over the long term the Nikkei is straggler"

Your base is the peak of the craziest bubble in history, where the market should not have been anyway. And in "the long term," we are all dead. A smart investor thinks over the medium term and recognizes a bubble for what it is, and thus a smart investor would have invested in Japanese stocks for a few years back, as the track record shows.

I'm seeing articles in the FT, CNBC, etc. calling Japan one of the world's best money-makers for investors. This message been around the past few years, and are resurging.

-3 ( +0 / -3 )

smart investor would have invested in Japanese stocks for a few years back, as the track record shows.

Anyone investing in stocks almost anywhere over the past few years has made money.

The longer term track records are clear, as I already noted, and there are better performers than the Nikkei225.

What you call a crazy bubble is a level that some here are saying will be surpassed in 2021 anyway, go figure.

By comparison the US tech bubble highs in the NASDAQ have already been surpassed.

0 ( +1 / -1 )

@fxgai you do realize that nikkei 225 thripled since 2009 right?

-1 ( +1 / -2 )

@fxgai you do you know that the nikkei 500 index blew past the 1989 bubble highs right? it seems like you are heavily underestimating the bubble of 1985-89. the bubble was soo goddamn huge that in 1989, the land value of tokyo metropolitan in 1989 was 5.6 times the entire land value of USA

-1 ( +0 / -1 )

@fxgai

 there are better performers than the Nikkei225.

Some, but not many. Nikkei 225 ETFs have clearly outperformed the Vanguard Total International Stock Index Fund over the past 5 years.

If you're living in Japan and earning yen, may as well put put money in Japanese stocks. No foreign exchange risk and no non-residency/foreign investor taxes, not to mention the tax-free options like NISA and IDeco. This is where smart money goes.

You merely resent the Nikkei's performance over the past few years because it undermines all of your bearish, if not doomsday, comments you posted here (and perhaps elsewhere) during that time on Japan's potential.

-2 ( +0 / -2 )

do you know that the nikkei 500 index blew past the 1989 bubble highs right?

Not familiar with Nikkei 500.

Look, I can go back to before the Nikkei 225 bubble in the late 80’s to the mid 80’s, and the Nikkei 225 is flat.

Whereas other indexes are up multiples over the same period.

If Biff from Back to the Future were to go back to 1985 knowing what we know today, do you think he’d buy the Nikkei 225 or some US stock index?

If you're living in Japan and earning yen, may as well put put money in Japanese stocks.

Having unhedged exposure to foreign equities has performed better than Japanese stocks, but yes it’s still better than having the money under the mattress.

No foreign exchange risk and no non-residency/foreign investor taxes, not to mention the tax-free options like NISA and IDeco.

It’s quite possible to invest in foreign assets from Japan including those tax free accounts.

This is where smart money goes.

Repeating this makes you sound like The Donald

-1 ( +0 / -1 )

@fxgai

What you call a crazy bubble is a level that some here are saying will be surpassed in 2021 anyway,

Yep and that level won't be a bubble, ie, a rapid escalation in prices. That's what happened in 1991. That is what is NOT happening now, given the uptrend has been going on steadily for at least 5 years after the introduction of reform measures like the governance and stewardship codes.

-1 ( +0 / -1 )

... don’t forget the central bank money printing for direct stock market purchases.

It’ll be the first thing to go if the BOJ ever gets to tightening.

0 ( +0 / -0 )

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