Japanese stock market hits record high in 30 years..."Control Bubble." The fear has grown

 The central bank of Japan may be able to buy stocks in a policy manner. It is a country of national character that celebrates itself even without interest, but I wondered if there were many people investing in stocks. By the way, is the central bank boosting the market by buying stocks other than anywhere else?

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Nevertheless, I am curious about the exit strategy. If the central bank's selling point is judged to be the peak of the cycle, the stock market will fall from then on, but I don't know if I can sell it and organize it... I feel like I was bitten the moment I bought it.

Japanese stock market hits record high in 30 years..."Control Bubble." The fear has grown

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The Bank of Japan is the only central bank in major countries in the world that directly intervenes in the stock market. The annual purchase limit, which was 450 billion yen when the system was introduced, increased to 12 trillion yen on four occasions. This is the result of former Japanese Prime Minister Shinzo Abe's cabinet, which was so sensitive to the stock market that it was called a "shareholder regime," strengthened its stimulus measures since taking power in December 2012. As stock prices plunged in the aftermath of COVID-19 in March and April, the Bank of Japan bought more than 1 trillion yen of ETF every month to support the market. Makoto Sengoku, a researcher at the Tokyo Research Center, analyzed that every time the Bank of Japan purchases KRW 1 trillion in ETF, the Nikkei 225 index rises by 260 points. It is estimated that the Bank of Japan bought 32.5 trillion yen worth of stocks during the Abenomics period between January 2013 and August 2020. In other words, the Bank of Japan pushed up 8,450 points from the Nikkei 225 index, which rose to the 26,500 level by simple calculations.