Tuesday, December 29, 2009
The BBC notes the 20-year anniversary of the Nikkei stock market index reaching an all-time high of 38,957 back on Decebmer 29th, 1989.
The index now trades at about quarter of that value. In other words, it has lost about 73%, closing at 10,638 on Tuesday. Back in 1989, Japan's growth was seen as unstoppable, with some analysts expecting the Nikkei to reach 100,000.Here in the U.S. we should feel pretty good about having just one "lost decade" in stocks - in Japan they're now starting their third.
But as the bubble in the property market burst dramatically, so the stock market fell and Japan's economy has never quite recovered, struggling with deflation and sluggish growth.