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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: borb who wrote (2310)	4/27/2000 5:24:00 PM
From: Professor Dotcomm	Read Replies (1) \| Respond to of 3902

You are right: psychology not economics but, hey, we are talking about markets not the GDP. The link between the Nikkei and the Nasdaq is, I'll admit, tenuous. However much of the foreign funds that have swept into Japan over the last 12 months have tended to congregate into the Japanese equivalents of Nasdaq stocks (NiCoMo, Softbank even Sony) and prefer to wait before buying more traditional stocks. Any fallbacks in the Nasdaq may cause weakening in these kind of shares and thus weaken the asset values of these foreign mutual funds. Also the Nikkei will only strengthen durably when domestic shares will be bought for the long term - preferably by the Japanese themselves. This will take time - but it will happen.