On Friday of last week, the Nikkei surged 570 points (+3.5%) to within a few points of its January 13, 2006 high in shaking off the negative fall-out from the Livedoor debacle.
This is clear evidence that the secular bull market is alive and well, and that the two-day 1,100 point sell-off as individual investors stampeded for the exits was sufficient consolidation, as the rebound was even stronger than TJI’s bullish expectations. The Nikkei sectors recently hitting new highs included the brokers, steels, mining and utilities. The brokers are a natural because of the sector’s high beta, while the steels and mining reflects the leadership shown by the basic industries in the US, despite high expectations for a major recovery in tech.
While the Koizumi Administration could go out with a whimper because of “BLT