Banque of Japan Governor Ueda remains hawkish! The Dow, which raised interest rates, has quickly hit a new all-time high!
The stock market is expected to be in a situation of heavy rain, then clear skies, and then cloudy with occasional rain. In early August, the stock market was hit by a fierce "summer storm" (BoJ/Ueda shock). It is said to be called the "Black Monday of Reiwa", but this is incorrect.
However, since then, it has shown a strong rally. The Nikkei Average (on a real-time basis) hit a low of 1,156,000 yen on August 5th. The decline from the all-time high of 2,426,000 yen on July 11th was 1,270,000 yen, a decline of 26.6%. It was a sharp drop.
From a chart perspective, it completely collapsed. It formed a major lower wick. Surprisingly, it rose to 840,800 yen on August 22nd. The increase was 7,252 yen, a rise of 23.5%. It regained 64.3% of the decline. The speed of the rebound is fast enough to make market participants believe in a "full recovery".
It's a fierce rebound. Behind this is the unwinding of carry trades in response to rate hikes, and the recoil from systematically selling. Of course, there were also short-selling by speculative investors. Given the sharp drop, the adjustment will be over in an instant.
However, the problem lies ahead. Investors must recover from the damage caused by the plunge.
Now, as for the reasons for the strong rebound, the Bank of Japan's ultra-hawkish monetary policy has undergone a slight correction, as seen in Deputy Governor Uchida's speech on August 7th (however, Governor Ueda's hawkish stance remains unchanged).
Furthermore, there has been a significant increase in share buybacks, and speculative investors (hedge funds, commodity investment advisors) have returned to the Japanese market immediately after the crash, and activists have also... $Iriso Electronics (6908.JP)$ $UACJ (5741.JP)$ , $Sanken Electric (6707.JP)$ It is said that they bought etc.
They (activists are different) sell to profit, and buy to profit. After all, it's a tactical move aimed at profit. They conduct large-scale executions and high-frequency trading. The high volatility expands investment opportunities.
The decline in the financial market during the recent turmoil of NY Dow has been limited to 7% (subsequently, reclaiming the all-time high). Well, it could be considered a "boring" market for speculators even though it is "strong".
The new American president supports home acquisition! Defense and services are expanding!
In any case, the crisis has been averted. Going forward, the situation seems to focus on politics (LDP leadership election on September 27, U.S. presidential election on November 5), as well as monetary policies of Japan and the United States, and the movements of the exchange rate (yen-dollar).
Basically, firming up of the value will be necessary. From a trend perspective, FRB (Federal Reserve) will lower interest rates, while the Bank of Japan will move towards monetary tightening (interest rate hikes, absorbing liquidity). The strengthening of the yen will not be preventable.
How about the hunting surface? Both Harris and Trump candidates have proposed housing support. It will be prosperous for American businesses such as
$Sumitomo Forestry (1911.JP)$ shutters, car doors $Sanwa Holdings (5929.JP)$ , lawn mowers $Yamabiko (6250.JP)$ , small power shovels $Takeuchi Mfg (6432.JP)$ , etc.
At the start of the Federal Reserve's rate cut, the utilities industry, real estate, and retail (essential goods, leisure sector) were bought. In the United States, it is important to pay attention to the
$Round One (4680.JP)$ , $Genda (9166.JP)$ which manages crane game facilities by acquiring local companies.
In addition, it will be necessary to prepare for a stronger yen (portfolio construction). From this perspective, we can pick up etc. $Nichirei (2871.JP)$ , $Kobe Bussan (3038.JP)$ $Workman (7564.JP)$ $H.I.S. (9603.JP)$ In addition, it will be necessary to prepare for a stronger yen (portfolio construction). From this perspective, we can pick up etc.
In addition, it will be necessary to prepare for a stronger yen (portfolio construction). From this perspective, we can pick up etc. $Kawamoto (3604.JP)$ In addition, it will be necessary to prepare for a stronger yen (portfolio construction). From this perspective, we can pick up etc. $Mitsubishi Heavy Industries (7011.JP)$ , $IHI (7013.JP)$ Photovoltaic panel recycling business $NPC (6255.JP)$ etc. has its appeal.
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ACHARYA ALOK : Great analysis
Chibou : Don't underestimate the American 🫡🫡🫡
Chibou : It's refreshing, isn't it?
This is why, yay 
利口なマシュー_0655 : No one knows what will happen in the future, etc.