The stock price crash of August 2024 will remain in the memories of investors. It was a historic event. No, even so, the market was terrible, too bad. It's oversold.
　The Nikkei Stock Average fell by 4451 yen (12.4%) on 8/5, and the decline surpassed 3836 yen during Black Monday on 1987/10/20 and recorded the largest in history, and the rate of decline became second in history after 14.9% on Black Monday. It is said that many investors have blown away the profits of the past few years.
　This crash was due to a combination of factors such as the Bank of Japan's sudden interest rate hike (0.25%), the attendant appreciation of the yen, the occurrence of a yen carry trade (75% of 500 billion dollars was rewound at once), concerns about a recession in the American economy, the collapse of IT companies' stock prices, and the tense situation in the Middle East (geopolitical risk).
　However, he said, “There is no doubt that the main culprit is the Bank of Japan. In fact, the Bank of Japan is working hard to counteract the hawkish stance of Bank of Japan Governor Ueda by “maintaining current monetary easing under a situation where global financial markets are showing rapid fluctuations” (Deputy Governor Uchida). These are the 3 parties (Ministry of Finance, money...

This week's highlights
This week, Japanese stocks are expected to move forward and backward. While excessive concerns about the U.S. economy have receded, expectations for a soft landing will strengthen if rate-cut speculation for September is maintained, leading to a buying spree. However, with the passing of the much-anticipated earnings reports and economic indicators for both Japan and the U.S., and a lack of new material, the market is once again...The market will unfold while keeping an eye on monetary policies in Japan and the U.S.There is also a possibility that the toro may determine the possibility of a rate cut in September, given the high expectations for Chair Powell to explicitly mention it.There is also the possibility of a firm market continuing until the middle of the week.If there are no positive comments on the September rate cut in the U.S., there is a risk that Japan's stocks will fall along with the U.S. stocks. On the other hand, Daiwa Securities' Chief Economist Tomohiro Suenaga also indicates the view that 'there is no particular reason for further depreciation of the yen, given the completely opposite monetary policies of the central banks of Japan and the United States, so it is likely to be difficult for the yen to weaken in the near future.'
This weekThe key point for U.S. stocks is where they will settle after the excessive speculation of a rate cut in the U.S. is corrected.The annual Jackson Hole conference will be held from the 22nd to the 24th, and Federal Reserve Chairman Powell's keynote speech is scheduled for the 23rd. The market...