The bubble burst | Seki Obata | Column



[ad_1]

The bubble burst

This drop is likely to be temporary (February 26, Tokyo) Kim Kyung-Hoon-REUTERS

On February 26, the Nikkei Stock Average plummeted by more than 1,200 yen.

Nothing surprised me, just the bubble burst.

Whether this crash continues and turns upside down, goes down with volatility or bounces once and then goes down with more violent volatility, the bubble has burst or is bursting …

It is natural for a bubble to burst, and it is a bubble because it bursts. However, this is completely different from the common sense that the bubble can only be understood when it bursts. Quite the contrary. All investors know that the bubble is in the middle of the bubble.

On the contrary, since it is a bubble, we have been flooded with investments, and this is always the case of the bubble. The sooner you get on the bubble, the more profitable you will be, and continuing to navigate until just before it bursts will maximize your profits, but while it’s unrealistic to exit just before it bursts, everyone is trying to find out. when will it explode. And they have a 200% understanding that it is a bubble.

The economy was constantly recovering

Now the problem with the bubble popping this time is that it feels like there is no trigger anywhere. Away from the impact of the crown, there is the possibility of a convergence of the crown, vaccines are widespread and some people and the media complain that the countermeasures of the crown are not going well, but it is a luxury or peculiar selfishness of Japan, and it is a compromise everywhere. the world. It is proceeding as it proceeds.

The media complain that the vaccination process comes and goes, but the economy is recovering steadily and the global recovery is progressing faster than expected. China recovered more quickly, but the United States also experienced a sharp drop in the number of unemployed and the economy was on the brink of recovery.

If world economic powers 1 and 2 rebound, the outlook for the world economy is bright.

As a result, US Treasury interest rates have skyrocketed.

This is the reason and the cause of the stock market crash.

The fact that the bubble started to burst for this too ordinary and legitimate reason makes this bubble burst in an unusual way.

Usually something happens that will be broadcast later and the bubble bursts. And it is shocking and symbolic, but often it is due to incidents that are merely symbolic, rather than causing a complete burst of the bubble.

Next pageLehman shock difference



[ad_2]