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Published On: Wed, Mar 25th, 2015

The growing value of Japanese stocks

What is causing this growth?

The Japanese stock market has risen to its highest level in 15 years and is currently above 18,000 points. The Japanese stock market has done this by outperforming various other competitors. The index for this year alone is up by 8.4% and although especially Japanese investors will be overwhelmed the question still remains to be asked and that is why is this growth happening? In previous years the growth in the stock market could have been due to a weaker yen but this is definitely not the case in 2015.

Normally a vibrant economy will be a realistic explanation for growth in a stock market but once again this is not the solution and this is definitely not the reason for the stock market growth. In 2014 there has been a hike in Japanese sales tax which resulted in a 0% economic growth. Not everything is so good like you will see here in the previous link.

Therefore the answer has to be found elsewhere

There are several factors which may be viable reasons for an explanation of the stock market growth. The first will be that on a comparative scale Japanese stocks are significantly cheaper and there are a new policy maintained by the central bank to pump as much money as possible into the markets and even into the acquiring of stock.

Lastly it is a well-known fact that corporate profits are very healthy at this point in time. Several of the most prominent Japanese corporations had an exceptionally good year in 2014 and among these companies or brands like Hitachi, Canon, Panasonic and Toyota. Some of the foremost financial experts on this planet have also taken note of the changes in Japan’s $1.2 trillion pension fund which apparently had a positive effect on the stock market.

photo/Revisorweb

photo/Revisorweb

What impact does the yen have on the world economy?

The truth is that despite the fantastic growth which has been seen during this year the yen has still been largely in the background as far as its influence as an economical power is concerned. The truth is that over the last couple of years the yen has lost a significant portion of its value against the dollar and is trading at a seven-year low point against the US currency.

However on the positive side the weaker yen has had a significant impact on Japanese exports which has generated a lot of revenue for Japan. As with all notable spikes in national economies the reality is that the best has to be made of those favorable times because they seldom last. Statistics over the last couple of decades will prove that the Japanese yen has risen above 20,000 points on several occasions only to plummet back after some time.

Millions struggle with debt

Millions of people are struggling with debt all over the planet and the problem with debt is that it keeps you in bondage since you are not able to live the kind of lifestyle that you deserve. When you have debt collecting agencies knocking on your door twice a week and you simply don’t have a solution for your financial problems this could leave people with feelings of acute despair.

There are times when a little cash at the right moment could be sufficient to provide you with a new perspective on how to deal with your financial situation. There are many solutions like debt consolidation loans that are providing people like you with opportunities to lay their hands on some extra cash. Ultimately however people will have to make responsible decisions when it comes to the managing of their finances. People will have to prioritize and they should spend their hard earned money only on those things which will ensure a long-term sustainable financial management.

How high could the yen go?

In the 1980s the Japanese stock market has risen to 40,000 points. However the challenge is not how high a currency will go but rather how long can it be sustained on that positive curve. This will require a very special financial policy which has to be applied unconditionally. Debt can be just as debilitating to an individual as it is to a nation but debt consolidation loans may have a solution.

However in reality every economy has its ups and downs and all of them deal with economical growth in their own way. Therefore every country will have laws that will attempt to eliminate criminal activity but which will not be so strict that it has a negative impact upon economic growth.

However regardless of whether debt is a national problem, individual problem or a corporate problem the fact is that it is an impediment.

Guest Author: Mariia Lvovych

Mariia Lvovych is a freelance writer and founder of Olma Writings business writing and blogger outreach service, writing mostly on business, finance and technology topics for various blogs as a guest author or contributor

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