nihongonogakusei comments

Posted in: Tokyo stocks end at 30-year high on global economic recovery hopes See in context


the market response can make sense based upon economics if you consider that numerous businesses going bankrupt during the pandemic leaves the market demand to be serviced by the surviving companies. Essentially the supply demand curve has shifted significantly. I can see why someone would buy stock in a surviving company when they will shortly have substantially more customers with their existing cost structure hence profit will rise and stockholders will benefit.

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