"Toyo Keizai ONLINE has a column published" The market is always cyclical.

Good morning, this is Matsushita.

All markets are

always in circulation.

Specifically, they cycle through rises and falls,

expectations (bullish) and anxiety (bearish),

trends and corrections, expansions and contractions, and so on.

Because it’s called a cycle,

after an upswing comes a decline,

after a trend comes a correction,

it will surely happen.

And once again from a drop to a rise,

the cycle from correction to trend repeats.

If you stay in the market for a long time,

you will witness this cycle hundreds of times,

in rising markets you think, “a fall will come someday,”

and in bullish trends you think, “be ready for a downward correction,”

and you prepare accordingly.

However, when you look around,

in increasingly long uptrends, it often feels as if the next decline

will never come, a biased mindset fills the air.

Just today in the Nikkei Stock Average,

that biased mindset has formed.

The rise that began on October 2 marked the first-ever 16 consecutive up days,

and then it surged to a post-bubble peak.

In relation to moving averages,

the close on September 11 broke above the 10-day moving average,

and the close on November 13 fell below the 10-day moving average

and did not dip below the 10-day moving average once

while continuing to rise.

This kind of rapid ascent is not something you see often,

an extraordinary market is forming.

And such an abnormal market will not last forever.

If you become accustomed to this abnormal market,

grow bold, and loosen risk controls,

troublesome situations await.

Markets are always cyclical,

they go up and then come back,

they go down and then rise again,

and continue to swing.

Within that swing and cycle,

investors must clearly decide where they will take profits.

If you move with the market and

lose your funds.

Within the market’s cycle,

define your position and your target clearly.

Make sure you do.

Then profits will cycle.