Nikkei plunges over 1,200 points to below 29,000; biggest drop in 4 years

It was 1983. I won't dwell on my age, but my memory is intact.

Mine clearly isn't.

Thanks, Alan. I went to Japan in 1980, and apparently the rate was about ¥500 to a pound. (That might explain how I was able to buy a camera with some cash I brought over.) How quickly things changed. Seven years later when we bought our first flat, it was about ¥250.

And now I'm wondering what else I've forgotten. :-(

@dvd: Over the years? Huh? We’re you out on my huge roof abode/garden over the years talking with me when the yen was ¥367 = $1.00?

Do not think so. But prices have come down or so stagnant over the years compared with inflation world wide that ¥125 to one dollar would be great.

BOJ is now the largest holder of stocks AND bonds in Japan.

Japan has been stuck in low wages and benefits for decades with its neoliberal policies.

Neoliberal?

The central banks weren’t the largest holders of private market assets, and government wasn’t subsidizing tourism and eateries, in the neoliberal policies that I know and love, so would you mind calling Japan’s ridiculous policies neo-neoliberal perhaps instead please?

We could use some neoliberalism today

"With more people getting vaccinated and infection cases decreasing, the market is expected to lean toward optimism," Horiuchi said.

Japan is way behind the curve so maybe that is why the drop occurred?

Kuroda is blowing a huge bubble with stocks. I really don’t understand it. BOJ is now the largest holder of stocks AND bonds in Japan.

Japan has been stuck in low wages and benefits for decades with its neoliberal policies.

Who cares!

I remember even better days when it was 400 Yen to the UK Pound.

Sorry, Alan, but I'm wondering about your age, and so about your memory. :-) But when was that?

(Although I kind of remember a time when a US dollar was worth six shillings and eightpence - 6/8. But long before I went to Japan.)

It was 1983. I won't dwell on my age, but my memory is intact. We used to tab in our heads, £25.00 = ¥10000.

My goodness, US$1.00 = 6s 8d (£0.34p). I don't remember that one. (Obviously pre Feb. 1971).

I remember even better days when it was 400 Yen to the UK Pound.

Sorry, Alan, but I'm wondering about your age, and so about your memory. :-) But when was that?

(Although I kind of remember a time when a US dollar was worth six shillings and eightpence - 6/8. But long before I went to Japan.)

I think I will keep my funds liquid.

I was thinking Irish Whiskey :)

The trend is your friend

There was no reason for the market to have risen to the extent it did.

The market is comprised of the actions of millions and millions of people so trying to pin a reason on what it does is pretty much a guessing game.

If you are long term in Japan, you can keep your funds in banks that pay close to nothing or invest in a stock that pays a dividend of 5% or so.

Better would be to invest in diversified global stock market indexes, I would argue, and buy into an. Investment vehicle that reinvests those dividends, rather than pays them out.

Interest rates are low everywhere right now, which has a good bit to do with why global market indexes are flying so high. So that advice no longer applies only to those living in Japan!

I’m a broad index guy myself, but watching TMV with some interest these days....

Brian WhewayToday  04:30 pm JST

......................... not so long ago the exchange rate was only 130 yen to the UK pound now its 149.

I remember the good old days of 250 Yen to the UK Pound and I was getting paid in Sterling at the time.

I remember even better days when it was 400 Yen to the UK Pound.

Long term interest rates go higher because investors think there will be more inflation ahead due to an economic boom in the US triggered by massive stimulus plus a solid recovery from covid.

The inflation will come because of the totally huge massive gigantic “stimulus” spending splurges being bandied about by the loonies in the new administration.

I thouhjt it was crazy how much the supposedly fiscally conservative Republicans were spending, eg, record amounts, but then with 1 trillion still to be spent the new administration seeks another 1.9 trillion dollars to spend already and I hear there will be more massive spending packages after that for infrastructure etc etc.

I think the economy will boom because the vaccines will start to make progress against the virus, but the inflation will come because of the crazy amounts of spending, and if that level of craziness doesn’t make inflation rise (hmm Bitcoin hmmm) then I’ll need to read a new textbook.

The lesson: buy now, when prices are at bargain level.

Given a couple of years, I think there is likely to be a far better bargain than this initial cough.

Just imagine when the administration decides to hike capital gains taxes and corporation taxes and income taxes in order to attempt to pay for some of these massive crazy spending programs that have been going on.

There will be a bargain after that sort of policy brings on a stock market correction, at minimum.

Still, I’m a long term guy myself so anytime is a good time to buy US stocks and indeed stocks in various markets. (I still won’t be touching Japanese ones, personally.)

I don't care!

As much as liberal I am as much as I hate greedy speculators.

Real economy first!

Money chasing more money. There was no reason for the market to have risen to the extent it did.

The Economist is predicting the yen will appreciate against the dollar. Go and figure.

The lesson: buy now, when prices are at bargain level.

Bargain level?

Prices were only at bargain level in March 2020.

All stocks are now pumped with freshly printed by central banks.

Most stocks and indexes are overpriced.

I’m with ozellis. If you have long term view this is a good entry opportunity.

This is normal.

Brian WhewayToday  04:30 pm JST

......................... not so long ago the exchange rate was only 130 yen to the UK pound now its 149.

I remember the good old days of 250 Yen to the UK Pound and I was getting paid in Sterling at the time.

How about this:

HISTORIC HIGHS AND LOWS FOR GBP/JPY

All-time records: Max: 1014.000 on 01/01/1963 - Min: 116.853 on 19/09/2011.

Last 5 years: Max: 195.843 on 18/06/2015 - Min: 124.78 on 26/09/2016.

Buy the dip.

If you are long term in Japan, you can keep your funds in banks that pay close to nothing or invest in a stock that pays a dividend of 5% or so.

Long term interest rates go higher because investors think there will be more inflation ahead due to an economic boom in the US triggered by massive stimulus plus a solid recovery from covid. That reduces the risk premium of stocks, so the investors get out of stocks. It seems like a short term trend, as the economic recovery will eventually lead to higher earnings for companies, and then watch stocks rise again. The lesson: buy now, when prices are at bargain level.

SandyBeachHeaven Today  05:33 pm JST

Yen = 125 to $1.00

To keep repeating this ad infinitum as you’ve done over the years won’t make it so.

What do these numbers mean? Is this the fizzle before the pop? Or, is it just fizzle?

Yen = 125 to $1.00

Don't pop the balloon !

With all the serious problems affecting society and the world, too many humans still fixated on money and all associated measures of money - stocks, GDP ...

It's no wonder there're so many looming crises.

For tourisum its a good thing, as we the tourist get more yen for our money

Tourism ? You came to Japan for the Sakura ? How lovely

For tourisum its a good thing, as we the tourist get more yen for our money, which could help the Japanese economy when it start to get back to normal, not so long ago the exchange rate was only 130 yen to the UK pound now its 149.

Bitcoin plunges too. Minus 1 million yen

Do not try to catch a falling knife...