The Japanese stock market soared, why did retail investors queue up and moved to India？

On March 4, the Nikkei 225 index exceeded the 40,000 -point mark for the first time to refresh the highest point of history.

The Japanese stock market has increased by 20%this year, which is higher than the global stock indexes such as the Dow Jones Industrial Average (4%). It is second only to Turkey (22%) in the 20th G20 (G20).However, this wave of big bull market carnival scared many Japanese retail investors.

Since April 2023, foreign investors have flowed into the Japanese stock market.Especially during the period from November 2023 to February 2024, the closer to the new high, the higher the amount of foreign capital inflow.Data from the Ministry of Finance from Japan show that as of February 10, the total amount of foreign investment in super Japanese stocks has expanded to 3436.4 billion yen (about 167 billion yuan) since this year.

Compared with the "explosive buy" of foreign capital, Japanese retail investors respond to the stock market much more cold.From the perspective of the flow of funds throughout the market, the overall investment amount of Japanese retail investors in the stock market declined from January 2023 to February 2024.By February 2024, the amount declined faster and faster.From January 9th to January 12, Japanese retail investors sold a total of 106.8 trillion yen (about RMB 51.5 billion) Dongzhi Main Board shares.extremum.Jaipur Stock

On the one hand, foreign investment is buying, but the other side is the exit of local retail investors.What makes the Japanese pay attention to their own stock market?

"The main reason is the panic caused by the big collapse of the stock market in the last century." In this regard, Reuters analyzed.

The reason why Japanese retails were withdrawn so fast are probably afraid of being stuck.

The 30 -year -old Ishikawa Ayako lived in Tokyo. After the epidemic, he began to invest in stocks and became the "new investor" in the Japanese stock market.She usually learns stock knowledge through financial management books and online channels. Do n’t look at the current stock market rising. In February 2021, the average stock index fell by the Nikkei fell by 1200 points, setting a biggest decline in 4 years."Recommended stocks", she was also "stuck".At the same time, there were people "the salary of one month is gone for one night."

"New investors" like Jia Daizi are still shadows, let alone other old shareholders.

Today's middle -aged and elderly people and elderly people have basically experienced the era of the stock market bubble rupture, the Asian financial crisis and the 2008 subprime crisis.Trust the country's stock market.

After entering the 30 years of loss, the Japanese people generally do not like high -risk investment, and promote low -risk savings."Economist" data shows that about 54%of Japan's household assets are cash or deposits. In contrast, the British data is 31%and the United States is 13%.Ahmedabad Wealth Management

Another group of data shows that in the 1970s, retail investors in the Japanese stock market accounted for about 40%. In the early 1990s, the stock market bubble plummeted after the crushing, and the current level was 17.6%.

The elderly did not dare to buy it, and many young Japanese would rather invest in overseas and do not want to buy Japanese stocks.

According to the Indian Times, since this year, Japanese retail investors have invested funds to the Indian stock market.According to Bloomberg data, in January, Japanese individual investors swept 237 billion yen (about 11.5 billion yuan) in the Indian stock market.

This phenomenon has been available since last year.As of the end of 2023, Japanese investors' investment in the Indian stock market reached 286.85 billion yen (approximately RMB 139.3 billion), an increase of 815.2 billion yen (about 39.6 billion yuan) from the end of 2022.India has become the emerging capital market that is most favored by Japanese retail investors.

The surge in the Japanese stock market has indeed attracted the attention of a large number of investors. However, the reason why retail investors choose to leave the market may involve multiple aspects.Here are some possible explanations:

First of all, although the Japanese stock market performed well, investors may think that the market is overheated and there is a risk of foaming.In this case, they may choose to leave the field to avoid the losses caused by possible market callbacks or collapse.

Secondly, the Indian market may provide more attractive investment opportunities.In recent years, India has continued to grow, and its market potential has been huge.At the same time, the Indian government is also actively promoting economic reform and attracting foreign investment.These factors make the Indian market a goal for many investors to seek new growth points.

In addition, personal investment strategies and risk preferences may also affect the decisions of retail investors.Some investors may be more inclined to pursue high -risk and high return investment opportunities, and the Indian market may be more in line with their investment style and risk preferences.

Finally, market sentiment and investor psychology may also affect the decision -making of retail investors.During the market prosperity, investors are often more vulnerable to optimism, so as to make some decisions that may not be rational.When the market has uncertainty or risk, they may be more likely to choose to leave the field to avoid risks.

In summary, the reason why the Japanese stock market has soared but retail investors choose to leave the market and turn to the Indian market. It may be a multi -faceted, including the market's overheating, the attractiveness of the Indian market, the personal investment strategy and risk preferences, and the market emotional factors.However, the decision of each investor is based on its personal situation and judgment, so the specific reason may vary from person to person.

Kanpur Investment