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FxWirePro Call Review: Nikkei225 reaches target and beyond; what’s next?

Back in October last year, we urged our readers to maintain long positions in the Japanese benchmark stock index, Nikkei225 for another 12 percent gains in this year and next. Nikkei was trading at 20881 then. Here is a link to the article, http://www.fxwirepro.com/fxwire/popup/newsPopup?id=748952 , if you can’t access it, here are some key points,

“The key question here – Will the Bull Run continue?

We at FxWirePro think it will. We would like to urge our readers to maintain long positions in the Nikkei 225 with an expectation of around 12 percent gains over this year and the next and the reasons are,

  • Bank of Japan (BoJ) will maintain its current expansionary monetary policies. It will be one of the last major banks to withdraw the stimulus.
  • The central bank also admitted that the economy is firing on all its engines and growth is expected to be above average.
  • Though the current steel scandal is casting a shadow over the Japanese markets, the companies are very much expected to beat earnings estimates as the third quarter earnings season is set to kick off.
  • The current account to GDP ratio remains well above its long-term average and is slowly approaching its all-time high at 4.7 percent. The ratio is currently at 3.7 percent.
  • Terms of trade have improved for a third consecutive month in August.”

When the index reached our target in November (faster than originally anticipated), calculations suggested a large drop in Nikkei 225 and we suggested here, http://w1.biz.fxwire.pro/news/preview?id=773750

However, the drop was smaller than anticipated as the global bull run in equities continue and Nikkei re-reached our bullish target and beyond.

Our latest calculations suggest that the bull run is likely to continue further. The next target for Nikkei225 is coming at 24,600, which is a 2.7 percent run from the current price.  

 

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