To The Moon

The Nikkei 225 is a worthwhile investment

After decades of slow growth, Japan’s Nikkei 225 $NIKKEI 225 ETF(XDJP.UK)$ is increasing quite fast. It’s almost back to it’s pre-asset price bubble in 1989 at 33,772.89 yen compared to 38,915 yen at 1989. The Nikkei 225 has increased 5,743.73 yen in 6 months, a rare record set after 1989. The Nikkei 225 seems promising, and could lead to the highest price set ever by the Nikkei 225.

The Beginning to the Price Bubble

Before we go into the recent rise of the Nikkei 225, let’s see it’s rise before it collapsed on 1989 due to the asset price bubble.

It starts off from around 100 and has steady growth, going to 1000 yen in 1960

From 1960, it frequently goes up and down, crossing the 1,500 yen mark several times before reaching 2,400 yen in 1970

From 1970, it stays steady until near the end of 1971, it increases a lot to 5,000 yen and goes back down. It later increases, reaching to 7,000 yen in 1980. This is the first major increase, increasing more than 3 times of what it started off with in the start of the decade.

From 7,000 yen, it stays steady until 1983. From here, it increases a lot to almost 15,000 yen. But from here, it increases very quickly to 38,915 yen, the highest price ever in 1989

The Japanese economy has seen huge growth so far, but sadly, this was going to come to an end.

The Price Bubble to Now

From 1989, Japan’s economy started to decline heavily due to the price bubble, leading to current economic events in Japan. It still hasn’t recovered yet, but is making great progress.

The recent rise

Nikkei 225 has far outpaced many other stocks and stock markets this year. The Nikkei 225 is far more lucrative now than any other stock market in the world, and here’s why.

Growing Optimism

As companies move away from China, they are looking for better places to invest and place their offices. Japan is a safe bet, as it’s a safe country and it’s near China, making it easy to relocate. Japan also is a high technologically advanced nation with many resources to set up offices and other business ventures.

Business Success

In Japan, more than 1,067 companies are expected to grow profits by 2%, the third consecutive highest time. This will increase stock prices, which will raise people’s interest in Japan’s stock market.

Safer Country

Even the country being safe is a factor in investing. While US, China, Germany, France, and other nations are dealing with political problems, riots, and more, Japan is pretty safe. Japan rarely has any huge tension, and that proves that Japan can be a good place to store and invest your money.

Should you choose the Nikkei 225?

Overall, Japan’s Nikkei 225 is a safe bet. It’s gone to a huge price, with multiple things increasing Nikkei’s stock price. Even though it showed a decline to 32,000 yen recently, it can still be a great stock market to invest overall.

It should come down to your decision of whether you want to invest in the Japanese market. Government policies are needed to increase the stock market gains more, but there is still hope in the Japanese economy.

Hope this information was useful, and have a great day!

@TigerStars @CaptainTiger @MillionaireTiger