Nikkei ends at highest level since June 1991 on hopes of economic recovery

The government shouldn't be involved in a business sector it supposedly regulates.

Shouldn't even be in business in the first place.

For the life of me, I cannot understand this optimism. The situation in the US is far from over, god knows what Trump and his lackies are up to. Pfizer has said their vaccine is 90% effective, but we still don't really know when we will get the vaccine. The number of cases is growing far too fast in almost all corners of the world, world economies are being completely battered, but the stock market is rising like we were back during the bubble. IF anybody can explain what is going on, both here and the US, I would like to know.

IF anybody can explain what is going on, both here and the US, I would like to know.

There's lots of stimulus floating around amid super low interest rates, while the economic situation, though dire, is expected to be temporary. Investors want to get in early rather than later, by which time stocks will be even more expensive. Biden's tax policy will be kept in check by a Republican majority Senate. There.

@MarkX; I was about to reply, but Jeff has pretty much summed it up. There is so much 'free' money in the system and nowhere TO put it but the stock market. You are penalised for holding cash, Biden will not be able to raise taxes without the Senate...Government Bonds yield little or cost to hold - money has to flow into something.

Thanks for that. But in reality, it is only helping the super wealthy, not the regular Joe, right?

Depends how linked your pension is to the Equity Markets. If you have nothing then , no, no help at all.

MarkX

State pension funds and other social-security funds are among the biggest owners of stocks.

The stock indexes are linked to illusions not reality...

I agree. Japan is bouncing back, Can she keep it going?

there is no recovery , the JGOV is printing money and give it to J-companies. this growth is 100% artificial!

Wishing on a star is all the Nikkei can do. But Japan is not out of the woods just yet.

Nikkei ends at highest level since June 1991 on hopes of economic recovery

Of course, the "economic recovery" is not in relation to June 1991, but only to the more recent coronavirus pandemic. I still can't bring myself to buy Japanese stocks given the shenanigans of the likes of Nissan, and government interference in price setting as seen recently with the mobile phone price plan nonsense, not to mention the onslaught of subsidy programmes for various things. There is nothing as permanent as a temporary government programme.

No one said she (Japan) is out of the woods or recovered. Just saying it was nice surge and its getting consistent.

illusions not reality... not reality...Seriously??? Artificial?

Here some illusions for you.

https://www.youtube.com/watch?v=xnFj5-ZBk1g

Let's try to welcome in some good news!

Seem to be a lot of people here trying to reassure themselves. Some facts. The japanese companies are in the worst predicament since worldwar 2.

the stockmarket is kept up in Japan by cheap money and the BOJ buying stock which they should not because it creates an enormous bubble.

People get fired or better asked to “voluntary “ retire. Airlines, hotels, restaurants on the brink. Retail on its knees. Supermarkets and online sales are doing well but the 2nd reaching its ceiling.

Real estate gets emptied at record pace, both residential and commercial.

Suicides do not increase because business and live is great either.

Japan is at the beginning of a very difficult time, not at the end. BUT long term this country can be paradise, only not before 2030, will we recover here. Either work to that date or keep sticking your head in the sand and see how long you can keep breathing. The stock market here will come tumbling down to a realistic level between 15.000 to 20.000 by the end of February 2021.

Kurisupisu wrote:

The stock indexes are linked to illusions not reality...

I totally agree with mate,these numbers are just non realistic and first they don’t reflect the real state of the economy,and second it can’t be compared to the social economic situation of 1991.

The stock market here will come tumbling down to a realistic level between 15.000 to 20.000 by the end of February 2021.

Dangerous situation may come soon.

If possible, please inform Mr. Warren Buffett and foreign investors about your confidential information. Foreign investors, except Mr. Buffet, invested JPY3.42 trillion ($32 billion) in the Japanese listed companies in October 2020. I think they don't know they are in dangerous situation.

Printing money.

Suga off to a flyer in running the economy! Things are ticking along nicely, very low unemployment and with the Covid vaccine and Tokyo 2021 just around the corner, the Nikkei could well test 40,000 pts in 2021.

For the Nikkei to test 40,000 in 2021, I would imagine the yen would have to lose about 50% of its value for that to occur.

I dumped my Japanese stocks when Abe started spraying money about the place several years ago, and shifted that into US S&P 500 exposure. And I expect S&P500 will continue to outperform the N255 over the next couple of decades.

great news.