[Thinking能力] What does the volatile Japanese stock market imply?
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Now, the theme this time isThe Volatile Japanese Stock Market.
In the stock market on December 6, the decline briefly exceeded 500 yen.
After a day, on the 7th, the market rebounded by about 300 yen.
What does this mean?
Japan, among Asia, has a high trading volume, in other words a liquid market, so hedge funds and institutional investors can move large sums of money easily.
As a result, it is prone to sharp fluctuations.
The introduction of high-frequency trading and price spreads of less than 1 yen are laying the groundwork for high-speed trading.
Indeed, it favors foreign investors while disadvantaging individuals.
As a result, if volatility rises, risk increases, so medium- to long-term investors must buy at lower prices, or else the risk-reward does not add up.
In other words, it will not become a high P/E market.
Note) The above is my personal opinion and is intended solely to improve financial literacy. Therefore, it was not prepared for investment solicitation. Also, while the blog content is based on data from reliable sources, the administrator does not guarantee its accuracy. Actual investment decisions should be made at your own risk.
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