Sunday, May 8, 2016

A relation of Nikkei and JPY

Who want to be rich?

There is a way to be rich. An Investment.

I have a friend who made money through an investment. Last year, He predicted Japan market went down, and bet on it. It was right. He got rewards.

Then, he went Philippine to learn English, engineering and he launched his own services and started to sell it.

He has a new language, new skills, new friends, and a flood of money. I don't care about money but there is no doubt that what he's done is fascinating.

An Investment. Some articles show there is something between Nikkei stock price and Yen exchange rate.





It might be true because it seems they have something, but the mechanism is unclear.

I could say, it just an illusion of a market. The market is too complex to understand.
The price of Yen, and The price of Dollar which has an influence on Yen, The price of Nikkei stock and The market demand which has an influence on the stock price, are always changing.
and the relation is not clear.

Then, how would that happen the apparent relevant between Nikkei and Yen? The reason may be simple. Increasing of earnings in abroad.

A strong Yen is good for exporting. In other words, When a yen price going up, the earnings also going up.
The earnings going up, the stock price going up.

If you want to make money, buy stocks of a global company when yes is weak might be a way to be rich.

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