Regarding the Nikkei Stock Average's new record high for the first time in 34 years, Japan Exchange Group CEO Hiroki Yamamichi said at a press conference that it reflected the increasing earning power of companies, and that the current state of stock prices and the economy was He expressed the view that they are not far apart.
On the 22nd of this month, before the holidays, the Nikkei Stock Average broke its all-time high for the first time in 34 years, set in December 1989 during the bubble period, and continued to rise on the 26th.
Speaking at a regular press conference on the 26th, Japan Exchange Group CEO Yamado said, ``With continued price increases and increasing momentum for wage increases, we are seeing a trend toward companies returning to a growth path as we approach the end of the deflationary economy.'' This is why we are attracting the attention of domestic and foreign investors.''
He was then asked, ``Aren't current stock prices in a bubble?'' In response, he pointed out that from the perspective of corporate profits, they are relatively cheap compared to Japan during the bubble period and the United States today, and added, ``Companies' "The market's strength is steadily increasing, and I don't think stock prices are being formed in a way that is far removed from the actual situation."
Meanwhile, as stock prices continue to rise in stock markets such as the United States, famous American investor Warren Buffett recently pointed out, ``Today's market is much more like a casino than when I was young.'' Regarding this, Mr. Yamado said, ``In the American market, there were times when the market fluctuated quite wildly.Based on Mr. Buffett's investment philosophy of investing with medium- to long-term company growth in mind, the market It is quite possible that this is reflected in the image."