I am not an active investor to the stock at all. But I am still interested in it. The stock market reflects, or strictly speaking, used to reflect the economy in our country as well as the world.
Since the administration of Abe started 6 years ago, in addition to asset bubble due to astronomical scale of monetary easing, the government has manupilated the stock market through buying massive amount of ETF by BOJ. It is to make window dressing on the economy in our country. BOJ has become the major stock holder of 40% of the companies in the market. It could never be continued. With the world stock market getting into bear phase, our government/BOJ could never go on this window dressing.
Since Oct. 2nd, the stock price is dropping rapidly. About 10% drop in total. During this short period, BOJ has bought ETF by 36 million USD, which has been absorbed by foreign vulture funds through short selling. Of course, the stock market could wax and wane. It is the characteristics of the stock market. But it could not be excused anyway to try to keep the governmental manipulation in the market with the fund with the fund from BOJ. We should bear the consequence in the near future.
It is a tragedy that most people are not aware of that in the vague euphoria in the society from the asset bubble. That is what the Abe administration aim at.
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