Free Article: Understand the 'Now' of the Japanese and US Markets! For those who don't want to spend time on investing. An action plan to start with the latest market trends!

This article was picked up by note money in the SPDR S&P 500 ETF , NEXT FUNDS Nikkei 225 Linked Exchange Traded Fund , Vanguard Consumer Staples ETF categories.

Hello to everyone who has started building assets through stock investment and other means.

This time, I am providing a free article for asset management beginners without any difficult jargon (I have tried to write it as clearly as possible). If you want to grasp the background of the Japanese and US stock markets and market conditions, and are serious about thinking through your investment strategy, please be sure to register for our membership.

This is a story from quite a while ago, back when the NISA system didn't even exist. I was doing some investing, but in the beginning, I would sometimes make a profit by luck, and I also struggled with questions like 'When should I buy?', 'What should I choose?', and 'What should I learn first?'😊

Everyone thinks, 'I want to make a profit,' 'I don't want to lose money,' 'I don't have time'... I understand those feelings well. But, I have become able to continue building assets without strain💪

There was a moment when I saw that everything I learned in school, such as political economy and international relations theory, was connected to the market. And by programming my own unique indicators for technical analysis, I began to see how trading—the supply and demand—overlapped with or diverged from solid investment trends.

The market does not move exactly according to economic and financial theories. Supply and demand, where individuals buy and sell for their own reasons, are the lubricant that brings liquidity—the ability to convert to cash—to the market. This is something that cannot simply be turned into a usable tool just by reading books or being able to explain everything with theory alone.

For example, everyone knows that even if you learn theory from books and get certifications in sports or music, you cannot become a professional athlete or musician without playing experience and years of practice. Even for doctors, you wouldn't entrust a life-saving surgery to a doctor who just received their national license. However, when wisdom gained from experience is added to knowledge, it means you level up to a different dimension.

While there is rationality in macro-level discussions, I have never seen anyone become a billionaire just by being an economist or financial scholar. That is not the reality. There are people who build wealth through investment even if they only finished middle school or high school, because they have a sense for and understanding of the market, and such people exist, even if they are rare. People who made money temporarily by luck usually seem to end up leaving the market.

Here is the potential of AI that I have arrived at. By customizing AI to perform fundamental analysis based on economic and financial theory, and by utilizing AI in technical analysis, what I can do has changed completely. AI is truly expanding the possibilities of turning ideas into reality. It is not just about saving time, efficiency, or cost-performance; it is about performing the work of expanding ideas with the feeling of having an F1 racer's engine installed in your own brain. Sharing those results with you is the reason I create and publish this series of note articles.

In today's article, based on yesterday's trends in the Japanese and US markets, I will organize the overall picture, including exchange rates and interest rates.

And, I will propose a small-amount, efficient, and easy-to-understand method, and I hope that after reading this, you will feel that you can take your first step.

With daily market insights derived by AI, I will support your asset formation both in terms of time and knowledge. Follow me for smarter investment decisions.

1. The market until yesterday: Different expressions in Japan and the US, and what lies behind them

• In Japan, the Nikkei Stock Average was almost flat at -0.05%, while the TOPIX was firm at +0.40%.

• Meanwhile, in the US, the Dow fell -0.46%, the S&P 500 fell -0.30%, the Nasdaq 100 fell -0.21%, and the VIX (fear index) rose significantly by +6.3%📈

• US-China trade talks have not progressed, and negotiations on extending the August 12 tariff deadline are uncertain, leading to heightened risk aversion.

• Also, the US 10-year Treasury yield fell slightly to about 4.33%, but the interest rate level remains high, suggesting investor caution.

2. Deciphering the market environment and risks

• Although the S&P 500 and Nasdaq are hitting new highs day after day, the entry of bullish small-scale investors is the driving force behind the recent market, even as a wait-and-see mood sets in. Individual investors are showing their presence at record levels, and meme stocks and intraday option trading are becoming active.

• However, the market has similarities to the situation before the 1998 correction, and it is pointed out that the low level of the VIX and the lack of breadth in the market are signs of overheating.

• Investor sentiment may have reached a peak, and a review of interest rates and valuations is also necessary. In particular, regarding the 10-year Treasury yield, there is a view that around 4.75-5% is 'appropriate'.

• Hedge funds are shifting from technology stocks to the consumer staples sector, and a movement of funds toward stable sectors is also underway.

Click here for Market Shots, delivered every morning with audio commentary:

3. Concrete ways to streamline your investments

There is always risk behind profit.
Even if you think your savings won't decrease,you should understand that if inflation causes many product prices to rise, you are bearing the risk that you won't be able to buy the same things with the same 10,000 yen you had a year ago. If you don't manage your assets to exceed the inflation rate, even your savings will effectively decrease in value. That is why you engage in the business of asset management called investing. Since it is a business, you will get hurt if you treat it like gambling.

・Start broad, low-cost diversification with investment trusts or ETFs with fees under 1%.
Choosing Nikkei-linked, TOPIX, US S&P 500, or US consumer staples sector ETFs means you have automatically diversified into multiple stocks without having to pick individual ones.
・Use a NISA account to increase your effective yield through tax savings.
By using the tax-exempt quota, you can increase tax efficiency if you continue for a long time, even with small amounts. It pairs well with index ETFs.
・Start with domestic yen assets without taking on currency risk.
Since the yen remains weak at around 147 yen to the dollar, one strategy is to hold off on dollar assets for now and start with Japanese stock ETFs or domestic investment trusts. However, it is also an option to hold assets in US dollars long-term, where high growth can be expected regardless of the exchange rate.
・Try high-risk futures (Mini Nikkei/Micro) for short periods with small amounts.
This is day trading rather than investing. It is not suitable for those who feel that investing is scary. Using mini or micro futures for day trading is effective as an experience to develop a sense for the market with small units (tight risk management is essential).
・Clarify your investment rules.
For example, set your own criteria such as 'monthly accumulation + review if there is a fluctuation of 5% or more' so you are not swayed by emotions.

4. Investment scenarios and action plans looking toward tomorrow

You can grasp things even more deeply with a set of detailed analysis articles and Market Shots:

Conclusion: Take steps toward peace of mind one by one

The market is currently firm, but in some areas, signs of overheating and correction can be seen.
However, that is precisely why 'don't rush, start small, diversify, and continue' is important.

If you take a small step today, it will lead to peace of mind tomorrow.
Don't overdo it, but be steady. Investing becomes a strength if you keep at it✨

Regarding market conditions, the AI refers to the following news articles:
– Prospects for progress in US-China trade, US record highs, and correction risks, etc.

• AP News

• Wall Street Journal

• Reuters

• Market Watch
  and many others

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Thank you for reading. If you found this information useful or made new discoveries, it would be a great encouragement if you could like and follow. Thank you very much.
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