It’s been fascinating to watch Japan’s Nikkei index over the past several years.
Starting in the fall it went on a rocketship ride, thanks to the promises made by new Prime Minister Shinzo Abe, whose “Abenomics” platform promised to revive the economy via aggressive monetary policy, fiscal policy, and structural reforms designed to jolt the Japanese economy to life.
(Abe actually wrote a great LinkedIn post on Sunday summarizing how it’s all supposed to work)
Anyway, during that time, the Nikkei has sort of been seen as a gauge of how well things are working. Whether it’s fair to judge such a regime by the day-to-day swings (let alone month-to-month) of the stock market is an open question.
But at first, the surging market was seen as a ringing endorsement. Then a crash in June made people say it was all a Ponzi or a bubble.
Anyway, since then things have settled down, and the market is on a nice tear, without much chatter.
Last night it gained 1.8%, crossing the 14,000 threshold once again.
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