A Day That Didn't Drop as Much as Expected: The Calm of 'Investor Sentiment' Seen in the 1,241 Yen Drop of the Nikkei Stock Average

I was prepared from the morning.
Coming off a three-day weekend, the news was filled with unpleasant words like 'political turmoil' and 'uncertainty over the prime ministerial nomination'.
That is why.

'It might drop by more than 2,000 yen today.'
I opened the market thinking that, but when I actually saw the results,the Nikkei average was down 1,241 yen.
Looking only at the numbers, it is a large drop, but honestly—my frank impression was that it 'didn't drop as much as I thought it would'.

The reason why the market's 'collapse' was mild

This drop could be called a 'coalition departure shock'.
Following reports that Sanae Takaichi's nomination for prime minister was facing difficulties and that expectations for her policies had receded, a headwind blew against the 'Takaichi-related stocks' that had been strong until last week.

However, looking at the whole picture,it feels like it hasn't turned into panic selling.If anything, it looked like a calm flow of profit-taking and adjustments, as if to say,
'Let's tidy things up for now.'

I feel that this calmness significantly changed the impression of today.
The market certainly shook, butinvestor sentiment has not collapsedThat was the 'strength of the bottom' I felt today.

When there are many people 'waiting for a crash,' it surprisingly doesn't crash

During this long weekend, even looking at social media and bulletin boards, there were many voices bracing for a 'crash'.
I honestly thought a big one might be coming too.
But the market is a mysterious thing, andwhen everyone has made up their minds, it surprisingly doesn't collapse.

Conversely, the moment you think 'it's safe now,' it drops with a thud.
This is the interesting part of market psychology.

Today was exactly typical of that, and I felt that the 'tension of the investors who were too braced' acted as a support.

In addition to that, we are also being helped by the strength of the US market the previous night.

The market's breathing seen on a 'day that didn't drop'

Feeling that it 'didn't drop' even though it dropped significantly—
this might be a sensation that only experienced investors can possess.

In other words, it might mean that one has become able to see'drops'not as a risk, but as'part of daily life'Once this sense is cultivated, you will no longer be swayed by market noise.

Today, the temperature of my heart was calmer than the numbers.
In that sense, for me, it might have been a'quiet crash day'

It seems like the market will continue to be swayed by political affairs for a while, but I would like to enjoy facing the market.

While praying that today will not be the signal for a bear market...

Thank you for reading until the end (^-^)