Try imagining it first.
Stocks and bondsA “popular person” named an investorIt's like being a romantic enemy fighting for”.
• Stocks: “There are risks, but look at the exciting future potential!”
• Bonds: “They're stable and I'm sure I'll return my money. The yield has also increased slightly.”
What if bonds (interest rates) feel cool?
Investors who have been obsessed with stocks until now say, “Oh, maybe bonds are safer?” I suddenly changed my mind.
When this happens, money is withdrawn from the stock market, and stock prices fall.
What happens when interest rates rise?
For example, let's say the yield on 10-year US Treasury bonds went from 2% to 5%.
This is like the country saying, “If you lend me money for 10 years, I'll give you 5% at a time.”
“Hey hey, if they give you that much, you don't have to bother holding risky stocks, right?”
... and investors' feelings lean towards bonds.
As a result,
• Safe assets = money flows into bonds
• Risk assets = money flowing out of stocks
• Stock prices fall as a result
This trend is born.
Are growth stocks particularly weak?
Tesla, Palantia, Nvi...

Humorous indicators trivia.
Nikkei Stock Average (Nikkei 225).
• The ghost of the bubble finally finds peace!?
In 1989, the bubble peak recorded 38,957 yen, but it has been sluggish for over 30 years. It was often referred to as the 'curse of the Japanese economy,' but finally updated in 2024!
...but if it gets too excited with 'We've surpassed the bubble!', it might be in trouble again.
• Although it is the 'average stock price', it is not average at all.
While the Nikkei average is a simple average of 225 stocks, Uniqlo (Fast Retailing) is at a super high price, which often causes it to move the Index ETF by itself.
I think there is a theory that "the Nikkei average equals the Uniqlo Index."
S&P 500
• It's a "report card" from the USA, but it doesn't include failing grades.
The S&P 500 is a list of 500 top-performing companies. However, those with poor performance can be quickly replaced. In other words, "Underperformers are out!"
Unlike Japan's TOPIX, it operates in a way that only consistently great companies remain.
• The dominance of GAFAM
Apple, Microsoft, Amazon, Google (Alphabet), and Meta (Facebook).
Even if one thinks "I am investing in the S&P 500", in reality, these five companies make up about 25% of the total...approximately 25%...