Does Japan Matter?

For the last 12 years we have seen the Japanese stock market slowly sinking from a high of 38,000 to about 8,000, more than a 75% loss and very close to the price of the Dow Jones Industrial Average. Why should we care about their stock market?

Please understand that the stock market price is a reflection of the overall economy of a country. Every major country has a stock market index related to their economic health. Today almost every one of them has been in negative numbers for the past 3 years. If you believe the numbers we are in a worldwide recession and the trend is still down. That means we can see further slowing of the world economic health. So what? Well, it could be the difference in your having a job or not having one.

Japan used to think that an unemployment number of 2% was terrible. It is now running about 5%. So, fewer people are working. Why should you care? Japan is our second largest customer for U.S. produced goods. If less people are working than there are less yen to buy American goods. Japanese businesses won't have as much money to buy new equipment much of which is purchased here. What happens there could be a reflection of what could happen here.

Why has their market dropped so horrendously? The bankers made mortgages and loans to companies. Most bank do. However when a loan went bad (collateralized by stock of the company) they did not charge it against their books. When the stock went down they did not revalue it on their books. In the U.S. the banks are required to 'mark to the market' every reporting period. That means they must say what it is valued at at that time, not when they bought it. Japanese banks (and Argentine banks) are not required to do that so they show on the books a fictitious valuation for loans and stocks many of which are worthless. The investment community knows this so they keep selling Japanese stocks.

Can we do anything about it? Probably not because it is political and there seem to even fewer 'honest politicians' in Japan than we have in Washington. But we can learn a lesson that you must above all be honest with yourself. When you have a stock in your portfolio or 401K that is going down you should sell it so that the loss will not become greater. Most Japanese banks are broke and you don't want to end up that way.

Brokers will tell you you don't have a loss until you sell which is so much hog wash. How much is your portfolio really worth? And in what direction is it headed? Don't let your investments become another Japan.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

http://www.mutualfundmagic.com; 1-888-345-7870

interior house cleaning Des Plaines ...
In The News:

Uber teen accounts now feature live video streaming from the driver's camera, but encrypted recordings stay on Uber's servers for up to 14 days.
Router firewalls and software firewalls serve different roles in protecting your home Wi-Fi from unwanted traffic and suspicious connections.
A Chrome extension with 70,000 users and a 4.7-star rating began injecting fake update warnings after a threat actor acquired and weaponized it.
Amazon's Alexa+ rolls out free to Fire TV devices across the U.S., but hands-free microphones and stored voice data raise key privacy questions.
Meta's new teen accounts settlement sets a default two-hour daily limit on Instagram and Facebook, plus night mode and school mode restrictions.
The CareCloud data breach exposed Social Security numbers, banking information and medical records belonging to more than 3.75 million people.
Waymo reveals its custom 5-nanometer chip and dual computing systems designed to take over instantly if the robotaxi's primary computer fails.
Identity theft now includes account takeover, phone hijacking and payment card exposure. Here's what to look for in identity theft protection services.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
The FBI and Justice Department seized domains tied to QScan and QTRouter, tools allegedly used by China-linked hackers to breach NASA and other agencies.
Uber Eats drone delivery launches later this year through a Zipline partnership, starting in Dallas and Houston with a goal of one million daily flights.
Medicare Open Enrollment scams start with data broker targeting months before October. Learn why August is the time to remove your personal info.
The World Humanoid Robot Games' crashes show how far the technology still needs to go to be useful, "Survivor" reality TV star and robotics scientist Christian Hubicki says.
X-Humanoid's TianGong Ultra ran 100 meters in 9.32 seconds at Beijing's World Humanoid Robot Games, beating last year's winner by more than half.
A tap-to-pay charity scam is turning small $15 or $20 donations into charges of nearly $5,000, with victims losing thousands before they notice.
Kurt Knutsson shares seven emergency preparedness lessons from surviving Hurricane Katrina inside a New Orleans hotel as conditions turned desperate.
A contractor stored credentials in a Google Doc set to "Anyone with the link," and Google Search autocomplete eventually surfaced the password string.
New Orleans 911 uses Carbyne AI to triage repeat auto crash calls, but strict limits keep human call-takers in control of all other emergencies.
A single card skimmer can generate $1 million in stolen funds, and Secret Service video shows criminals installing them in under two seconds.
ChatGPT, Meta AI and Google now use memory, connected apps and past chats to personalize ads and responses in ways most users overlook today.
MagicalAuth by Glide.id uses cryptographic SIM credentials to verify bank logins without sending SMS OTP codes that scammers can intercept or phish.
A humanoid robot named Lightning Bolt ran 100 meters in 9.39 seconds at the World Humanoid Robot Games in Beijing, edging Usain Bolt's record.
An AI agent using Claude AI canceled another person's gym booking after finding a security flaw in the reservation system's authorization checks.
Trump signed a memorandum allowing vetted private U.S. companies to conduct cyber operations against foreign criminal organizations under oversight.
Your Social Security number appeared in a breach, but exposure and identity theft are not the same. Here's how identity restoration actually works.

Trading Tips No 2: The Big Lie in the Stock Market

It is commonly reported that the stock market averages about... Read More

Choosing An Investment Stock Broker

If you want one.And I don't recommend any broker with... Read More

Two for the Money

Look back over the years and try to remember how... Read More

What Are You Waiting For?

Do you own any mutual funds? In an IRA or... Read More

Is the Stock Market for You?

Many people would like to diversify their portfolios to expand... Read More

Invest, Be Wrong, and Make Money in the Stock Market

I have been trading for several decades and was an... Read More

Duct Tape

Did you run out to buy that duct tape yet?... Read More

Bull or Bear?

Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More

Emotional Involvement

I'll bet with almost anyone that has stocks or mutual... Read More

Index Fund Trading Using Technical Analysis and Swing Trading Strategies

Index Fund Trading can be one of the most profitable...or... Read More

Time Out

Are you paying any attention to your retirement savings? Do... Read More

I Love You, Warren Buffet

Sometime around 1980, can't remember exactly, there was a flight... Read More

Being Wrong Buying Stock is Okay

Being wrong is OK, but let's not carry it to... Read More

Direction

It is difficult to make money in a bull market,... Read More

Frog In The Pot

You remember the story about the frog that was put... Read More

No Load Mutual Funds: Investment Hype vs. Investment Help

With the internet such a huge part of our daily... Read More

The Big Bad Bear

The big bad bear is stirring again. So far he... Read More

Understanding Stock Market Indexes

A stock market index is a statistical measure of changes... Read More

Whos Calling?

Its dinnertime and the phone rings. It's Joe Noname with... Read More

Mutual Funds: The Modern Den of Thieves!

Mutual funds were created with the idea that one person... Read More

Where Is The Beef?

Where is the beef? Or maybe it should be where... Read More

On Line Stock Trading: Small Cap & Micro Stocks Go Up and Down - How Can You Profit?

Success in small cap & micro cap stock trading like... Read More

The Cub; II

We keep hearing about this bear market and that the... Read More

Evaluation I

An insane person cannot evaluate an insane evaluation system.As you... Read More

Bottoms Ups

If you have talked to a stock broker or financial... Read More

home sanitizing services Lincolnshire ...