4 ms·

Finally people can stop pointing to the Japanese stock market as an example of a crash that never recovered.

• thsksbd 3y ago
  30 years to reach nominal parity? Normalize out inflation and the Nikkei still sucks - despite Japan's infamously low inflation.
  • xyzzy4747 3y ago
    Well it also paid dividends the entire time too which doesn’t get factored into the price. So maybe it matched up with inflation. I don’t know either way. You’d have to compare the total return with the total inflation.
  • dosinga 3y ago
    Inflation was about 0.5% and dividend yield around 1% so it's still up
• nmfisher 3y ago
  The lesson is still relevant though - i.e. if you bought shares in the top 100 Japanese companies in 1989, it would have taken you ~35 years to break even in nominal terms. That's clearly a bad investment.
  • Grimburger 3y ago
    Forgetting dividends here.
    • thsksbd 3y ago
      And you are forgetting that the index's underlying measure, the yen, has lost value and the NIKKEI has only reached 1989's nominal value.
    • mdorazio 3y ago
      Roughly 27 years with dividend reinvestment (yes, really).
• echelon 3y ago
  > Finally people can stop pointing to the Japanese stock market as an example of a crash that never recovered. Except it's not the same yen to yen comparison on account of inflation.
• kortilla 3y ago
  It hasn’t. Adjust for inflation and include the risk free rate of return and it’s an ugly picture.
  • EVa5I7bHFq9mnYK 3y ago
    >> Adjust for inflation and include the risk free rate of return You should choose one of those two, not both.
• mekster 3y ago
  Depends on your definition of "never". 35 years does sound like "never" for many people.