Realistic-less economic expansion
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Now, the theme this time isCurrent Economic Expansion.
The government announced the September monthly Economic Report on September 25.
Main contents are,
☆ The domestic economy remains on a "gradual recovery trend."
☆ The current economic expansion, which has continued since December 2012, is in its 58th month
☆ It may have surpassed the "Izanagi economy."
Frankly speaking, it is completely different from the public's sense of reality. Real wages are steadily declining.
We must not be swayed by what the government says.
It is incongruous that the stock market keeps rising while the domestic economy is not doing well.
On the other hand, it feels more real that department stores where clothing sells poorly are closing one after another.
In a situation where Japan's GDP is not growing, it is hard to imagine the market capitalization of stocks rising so much beyond GDP.
<＜Reference＞
Market capitalization (common stock basis, September 26, 2017)
TSE First Section: 626.4 trillion yen
TSE Second Section: 10.4 trillion yen
JASDAQ: 10.1 trillion yen
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Total: 647.0 trillion yen
Japan's nominal GDP forecast (IMF, April 2017): 546 trillion yen
647 ÷ 546 = 118%
Regarding GDP and stock market capitalization, I would be grateful if you read the following two articles as well.
GDP and stock market capitalization: Are Japanese stocks overvalued?
GDP and stock market capitalization: Are Japanese stocks overvalued (2)?
Note) The above is personal opinion, and is intended solely to improve financial literacy. Therefore, it was not created for investment solicitation. The final investment decisions should be made at your own responsibility.
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