I was quite surprised that this was barely mentioned in the news.
On October 1, 1989, the Nikkei 225 stock index reached 38,915.87. The Nikkei index is the Japanese stock index much like the S&P 500 here in the US.
Back in the ’80s, Japan became a powerhouse and was buying up real estate, businesses, US securities, and much more. I remember my clients and friends approaching me and asking if Japan was going to take over the world.
My rebuttal back then was the current population of Japan is very disciplined, rigid and worked very hard. But as they begin to accumulate wealth, their children will begin to enjoy the benefits of their parent’s wealth and will not want to work as hard, and Japan will not be the powerhouse it is today.
That was my rebuttal and probably not correct at all. What did happen is Japan inflated everything it touched and their bubble burst. More like collapsed. After the Nikkei index hit its high in 1989, it dropped precipitously and reached a low of 7,972.71 at the beginning of 2003.
History was made Thursday, February 22, 2024. The Nikkei 225 index closed at 39,132.69 and is now over 40,000.
You may be asking why I am writing about this. I wish to make a point. When almost everybody invests in the stock market, and it drops or corrects, almost everybody says, “It will always come back”. And they are right. It will always come back.
But can you wait almost 35 years for the market to come back? If you are close to or retired and relying on your investments for income, will your investments last 35 years for the market to come back?
I am an investment advisor representative, and I place my clients in the stock market to obtain superior growth. But I also suggest to my clients to take a portion of their wealth and invest it in safe alternatives so that they can weather a long-term storm or downturn.
Contact me so that I can show you these safe havens and discuss with you a concept called Sequence of Returns.
“Your Prosperity, our experience, investing for exceptional dreams.”
Please have a great day,
Corey Callaway
Investment Advisor Representative