Below is the Nikkei Index from 1972 to 2023 applying the Price Momentum Indicator.
Unlike the Shanghai Index, we view the position of the Nikkei 225 Index favorably. Although we would rather see the index at or below the green line, we would welcome investment considerations on individual companies in the Japanese market. To put the current market in better perspective, we’ve added the 2003-2023 charting of the Price Momentum Indicator.
With the continued effort for companies in Japan to remove their crossholding relationships, it is possible that a rising rate environment in the U.S. could be a good thing for Japanese markets going forward.
Our thoughts on the prospects for the Japanese market if the secular trend in rates were to increase from October 4, 2012:
“We have noted that historically, Japanese financial markets have done exceptionally well during high inflation environments (in the U.S.). Although we cannot be sure this will be the case again, we're sure that some country is going to come out ahead in the proposition. We only hope that war isn't a required avenue before we get to realize, from an investment standpoint, some of our analysis on this matter.”
Let’s see how the environment for the Japanese market evolves as we get past the reaction to the pandemic.
See Also:
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QE3: Blunt Object with Dull Impact September 16, 2012
Important Notes:
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Our work is not intended to be time sensitive.
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The primary objective is to avoid buying the top.
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Our postings are your starting point and in no way the end point for your research.
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We aren’t aiming to be exactly right, instead, our goal is to be generally close.
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Your concentration should be on the Price Momentum Indicator, the price of the stock is a secondary, although important, consideration.
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The Price Momentum Indicator is not meant to indicate tops in a stock.
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Observe with us before taking any action if you’re unfamiliar with our work.