Mastering the Market with Kounosuke Hiro no Soba, Enjoying the Market | Episode 11 [Hiroo Kouno]

Hiroshi Kono荒野-profile

After joining Japanese Kanyo Kubushiki Kaisha Securities (now Mizuho Securities) in 1971, he worked as an analyst in the research department. After a stint in the United States, he consistently analyzed information and markets for Japanese stocks. In 1996 he transferred to an asset management company (now Asset Management One), serving as Director of Research and Director of Asset Management, later becoming Managing Executive Officer and Head of Investment Trust Operations. He retired in 2012. Since then, he has been active on TV and radio appearances. His experience in market analysis centered on Japanese stocks spans half a century.

Newsletter:https://www.gogojungle.co.jp/finance/salons/8812/

※This article is a reproduction and re-edit of an article from FX攻略.com January 2021 issue. Please note that the market information written in the main text differs from the current market.

※Data is as of the end of October 2020

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The 2020 market has passed ten months, with only a little time left. Reflecting on this year's market, I would like to use the characteristics of the 2020 market to inform the outlook for the coming new year. First, the abnormal conditions that occurred this year, which may or may not happen once in ten years, are what I want to highlight.

A 2020 Market That Turned into an Abnormal Trend

Three rarely occurring abnormal situations occurred. These three are: the large annual range of fluctuations, the prolonged period of PBR (price-to-book ratio) below 1, and the extremity of market instability. I would like to examine them one by one.