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Tokyo stocks seen climbing in 2021 on economic recovery from pandemic

30 Comments
By Yuka Nakao

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30 Comments
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No idea why there is such a rosy outlook here, it's going to take a hell of a lot more than just optimism to bring about any decent recovery,

10 ( +15 / -5 )

I’d ask Yuka to answer , if her salary is set to rise on the back of her optimistic pronouncements?

1 ( +5 / -4 )

No idea why there is such a rosy outlook here.

Maybe because the "Japan is doomed" crowd operates on flawed assumptions and a flawed worldview? I've long been moderately optimistic about Japan's economic prospects, invested in the Nikkei from about 5 years ago, and have made a ton of money during that time.

-13 ( +7 / -20 )

@JeffLee

It is a pity that the majority of Japanese won’t ever have a ton of money to invest in the stock market, as you....

10 ( +15 / -5 )

Sengoku said the 30,000 mark will come within reach by the end of 2021, as more companies are expected to buy back their shares to increase shareholder returns.

What is this economic recovery from the pandemic of which they speak?

Oh, it is stock buybacks increasing shareholder value, one of the biggest reasons for depressed wages and why trickle down economic policies,corporate welfare and tax breaks for the rich never reach the vast majority of the public.

17 ( +20 / -3 )

The Same thing is said every year... so becomes somewhat meaningless.

Would be far better to say next year we aim to function 100% of the time.

5 ( +8 / -3 )

If there is a economy recovery, doesnt that mean that Abe, Suga and all the LDP did or are doing a good job?

-12 ( +0 / -12 )

Is that a Kraftwerk cover band in the pic?

10 ( +11 / -1 )

This

as more companies are expected to buy back their shares to increase shareholder returns.

and this

The Bank of Japan has raised its annual pace of exchange-traded fund purchases to 12 trillion yen from 6 trillion yen to tackle the coronavirus fallout.

Nothing to do with real growth and everything to do with the above two sentences.

12 ( +15 / -3 )

@kurisupisu

It is a pity that the majority of Japanese won’t ever have a ton of money to invest in the stock market, as you....

That's not really true. Japan's household assets are at a record high now. However, the bulk of it is in cash and insurance plans. Only about 15% is invested. In my case, around 80% is invested, and note that retail investing in Japan is very cheap and easy.

This issue is about personal choices and attitudes toward risk rather than being about opportunity.

-3 ( +6 / -9 )

@JeffLee-

I agree with you about MMT and the Japanese debt and the conservatively held Japanese household assets (especially among the older,retiree generation).

This issue is about personal choices and attitudes toward risk rather than being about opportunity.

Ignores the systemic issues of precarious employment and the fact that an estimated 70% of people are living paycheck to paycheck and are unable to engage in even minimal retail investing since they would be unable to deal with an unexpected $400 expense.

7 ( +9 / -2 )

It is possible that the stock market will grow further in 2021 but I think a 1929 like collapse just as likely. The disconnect with the real economy is ever growing.

But What is certain is that the first quarter of 2021 will be disastrous for Japan, that will likely be prolonged in the 2nd quarter but not worsened. Personally I don’t see the real economy grow at all in 2021. On the contrary.

The stockmarket MUST grow, it is the only way to survive as the ballooned valuations allow companies to borrow and pay the costs. As long as everybody globally buys into that, it works. The day one part of the chain snaps, the bursting of that bubble will be a hard reconnect with reality

3 ( +5 / -2 )

Even blind can see that the government save stock market.

Regular citizens get nothing.

The effect is: stock market skyrockets, what they don't understand that people can see this and they don't want to work anymore or slack around at work.

This all printing will cause huge problems in the future.

6 ( +8 / -2 )

Is this headline a joke or?

0 ( +5 / -5 )

BTW, How did the Nikkei Stock 48h downtime ended up?

They said that an external entity would auction the crash.

It's been only 2 months, and nobody seems to remember.

-1 ( +1 / -2 )

Funny how no headline ever warns of markets being overbought and ready for a steep correction... Anybody who invests in a toppy market like this is a glutton for pain.

1 ( +3 / -2 )

Well I am the worst investor ever but as Warren Buffett says, if you think stocks are expensive now wait to you see them in 10 years.

1 ( +4 / -3 )

That’s likely a rumor. Relying only on the Chinese market while all other countries’ and the domestic markets are even further folded to a minimum by exploding infection rates? That can’t and won’t hold substantially or for a longer term. If there wasn’t that extreme money printing you had real N225 rates nearly halved, not at levels similar to the best time ever when the bubble was the Golden era decades ago.

3 ( +4 / -1 )

I was at ground zero when the Internet Nasdaq bubble collapsed and my recollection is that up until the absolute very end, everyone finally believed that the stocks could only go higher. Now, since there still are remaining skeptics, I think the market has higher to go. Wait until "you" finally give in and start buying sky high stocks and then expect a collapse.

1 ( +3 / -2 )

if Congress rejects tax hikes, large government investments "will be impossible."

This is bullish.

0 ( +0 / -0 )

I have watched these cycles here for 3 decades, foreign money floods in from time to time when things are looking bad in the US & Europe....Japan becomes a ""safe haven"" & then when things settle down, get better in US & Europe etc the money leaves Japan once again.

Its theatre of the absurd but it KEEPS happening, now were are witnessing an inflow to Japan.

And as many above have said there is little to NOTHING of anything REAL happening in economies around the world, just $$$ shooting around here & there

3 ( +3 / -0 )

Starting my iDeCo and NISA from January. Hoping for some gains in 2021.

2 ( +3 / -1 )

I'm totally mystified why @JeffLee has stated the bl**dy obvious on so many points. He doesn't even claim thats it is a boom, he is merely 'moderately optimistic'. I agree with him totally. Too many people on this forum just think in black and white.

and at @Larr - There has been so much printing in almost every country now that the problem is now passing. Once something becomes so big, it becomes the norm. Just think about it a little more.

0 ( +3 / -3 )

sorry -bad post. I am mystified why JeffLee has so many 'thumbs down'!

3 ( +5 / -2 )

an estimated 70% of people are living paycheck to paycheck and are unable to engage in even minimal retail investing since they would be unable to deal with an unexpected $400 expense.

Dollars.

JeffLee was talking about Japan - are you? If so where is the evidence for that stat?

3 ( +4 / -1 )

Funny however no headline ever warns of markets being overbought and prepared for a steep correction... Anybody UN agency invests in an exceedingly toppy market like this can be a glutton for pain.eyelash extension glue

0 ( +0 / -0 )

@conny lashes Japanese markets are ridiculously undervalued tho.

0 ( +0 / -0 )

Kudos @JeffLee...it is so much easier to blame everyone else for why one's own personal finances aren't in order, rather than their own poor decision making. The only way to get wealthy unless you are born rich or win the lotto is by INVESTING, which is open to everyone despite their cries of living paycheck to paycheck. Anyone can live off of 10% less of what they make, but so few try...join the elite group of self sufficiency and you somehow become a pariah.

Perhaps some of the loyal doomers here should read "Richest Man in Babylon" or "Think and Grow Rich."

Pay yourself first and you won't spend your senior years eating Konbini noodles.

Or, you can just rely on the govt. to take care of you instead...which is basically other people's money....

Let the down votes begin...

2 ( +3 / -1 )

Kudos @JeffLee...it is so much easier to blame everyone else for why one's own personal finances aren't in order, rather than their own poor decision making. The only way to get wealthy unless you are born rich or win the lotto is by INVESTING, which is open to everyone despite their cries of living paycheck to paycheck. Anyone can live off of 10% less of what they make, but so few try...join the elite group of self sufficiency and you somehow become a pariah.

Perhaps some of the loyal doomers here should read "Richest Man in Babylon" or "Think and Grow Rich."

Pay yourself first and you won't spend your senior years eating Konbini noodles.

Or, you can just rely on the govt. to take care of you instead...which is basically other people's money....

Let the down votes begin...

My sentiments exactly. Do dollar cost averaging, even just small amounts, and unless one has the most extraordinary of circumstances, you will learn to live without that money while it grows in some type of account. I don’t work for an investment company, but common sense indicates a person should invest for the long haul as stocks go up and down, just like elevators (except one can predict at which floor the elevator will stop depending on the button pushed---OK, just thought I would start the New Year with some humor). I think Japan’s economy looks good for the long haul. If interested, T Rowe Price has a Japan Fund, as other companies do. I am not advocating for them, or employed by them, but I just want to help others. I doubt people will come to offer you money out of the blue, so you need to look out for yourself and your family. By the way, if someone does come out of the blue to give you money with no strings attached, please provide them my contact information.

0 ( +1 / -1 )

@ByteCarp i agree. I did invest in Japan when the economic sentiment in Japan was at it's rock bottom( after the earthquake). I chose Tokyo Electron, Keyence and Sony. I invested 5000000 yen into these 3 stocks as i believed that these 3 companies will be a lot valuable in the future. They're worth a lot now. I chose these companies for my longterm investment. I've even made great short term decisions like buying M3 stock(after i came to know that Sony invested in this company) and made Huge profits.

-1 ( +1 / -2 )

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