Do you know that something very terrible happened to the Japanese stock market on May 23rd, 2013?
On that day, a huge crash (It was the 11th biggest plunge of the Japanese stock market's history) hit the Japanese stock market out of the blue.
One day before the crash, Fed chairman Bernanke indicated the central bank may taper at some point. That word became one of the triggers of the shock.
Before May 23rd, the stock market had been in very imbalanced situation for a while. Although broad stocks declined, only Nikkei 225 and few stocks that have the biggest influences on Nikkei 225 were moving higher than others. I remember that many people said as below. "There is something wrong. Why are just Fast Retailing (OTCPK:FRCOY), Softbank (OTCPK:SFTBY) and Fanuc (OTCPK:FANUY) moving higher? Nikkei 225 climbs, but others are not good!"
On the day of the crash, HSBC China Flash PMI was revealed. The number was worse than expected.
Stocks, including Fast Retailing, Softbank and Fanuc suddenly started to tumble down. Every buyer got into a panic, and in the end all indices (Nikkei 225, Topix, Jasdaq and Mothers) took a nosedive.
The US stock market is surprisingly strong now. However, I think all the stock buyers should know/remember what happened to Japanese stock market one year ago. You Know What? Japanese economy's outlook was even perfect at that time, thanks to Abenomics.
Maybe we can forget "Sell in May and go away" this year, but there are seven business days left until the end of May.
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