Stock Market Stories – The Great Japanese Bubble (Value Investing FM)

In this new episode of Value Investing FM, Adrián and Paco continue the saga of Stock Market Stories, analyzing the great Japanese bubble, which caused the Japanese stock and real estate market to skyrocket between 1985 and 1991. In it, we will review:

  • The evolution of theJapanese economy in the second half of the XNUMXth century
  • The Japanese housing bubble
  • The Japanese stock bubble
  • Causes of the great Japanese bubble
  • Consequences on the economy and society of the land of the rising sun

Tabla de contenido

  • Another reason Nikkei exceeded 60x
  • In 1990 it fell to 21.902 (-43,7%)
  • In August 1992 it reached 14.338 (-63,2%)
  • In March 2003 it reached 7.862 (-79,8%)
  • Hoy está and 21.400
  • Consequences of the Japanese bubble (P)

    • Gradual effects, which still last. The "lost decade"
    • In companies:
      • Loss of competitiveness
      • Stagnation
      • Accumulation of defaults ⇒ Problems in financial institutions
      • Fall in consumption
      • Plunge in consumer confidence
      • Deflation
      • Increase in public spending
      • Interest rates for land
      • Very little effect
      • Sky deficit
      • Soaring public debt
      • Resultado: “Zombificación de la economía”
    • Some data. Between 1995 and 2007:
      • Price stagnant
      • -18,2% GDP fall
      • 5% drop in real wages
    • Currently: The most indebted country in the world ⇒ 240% of GDP

    Links of interest

    • Stock Market Stories - First Bubbles
    • Stories of the Stock Market - The crack of 29