The Nikkei 225 has topped 70,000, and the most painful part may be this: the index is soaring, but the stocks you own haven’t kept up.
On October 5, the Nikkei hit an intraday high of 70,072.13 and closed at 69,946.86, up 2.40%. Of its 225 constituent stocks, 157 rose and 68 fell. The market is indeed strengthening, but the gains aren’t being shared equally.
After years of trading, I’ve become less and less likely to take comfort in a buoyant index when looking at my own holdings. The Nikkei is price-weighted, so a rally in heavily weighted stocks can push the index higher—but it can’t replace the trend of each individual stock.
In the evening, I focus more on two things: whether gains are spreading beyond the leading stocks, and whether my own holdings are keeping pace. If the index breaks out while my holdings continue to lag, I first review my stock-picking rationale instead of just waiting to hear, “My turn will come sooner or later.”
Have you ever seen the index surge while your account barely moved?
Personal market observations only; not investment advice.#日经225涨2.5%创三月新高
On October 5, the Nikkei hit an intraday high of 70,072.13 and closed at 69,946.86, up 2.40%. Of its 225 constituent stocks, 157 rose and 68 fell. The market is indeed strengthening, but the gains aren’t being shared equally.
After years of trading, I’ve become less and less likely to take comfort in a buoyant index when looking at my own holdings. The Nikkei is price-weighted, so a rally in heavily weighted stocks can push the index higher—but it can’t replace the trend of each individual stock.
In the evening, I focus more on two things: whether gains are spreading beyond the leading stocks, and whether my own holdings are keeping pace. If the index breaks out while my holdings continue to lag, I first review my stock-picking rationale instead of just waiting to hear, “My turn will come sooner or later.”
Have you ever seen the index surge while your account barely moved?
Personal market observations only; not investment advice.#日经225涨2.5%创三月新高
