5 performance since the beginning of the year

It was to be the year of all records. After having increased by more than 40 in 2005, the Tokyo Stock Exchange was promised to a bright future in 2006 with the passage of the 20,000 points. Better, the virtuous circle in which the economy was could only benefit businesses, themselves restructured. It nothing was and the market has been on its head the analysts throughout the year. To the point that now, the threshold of the 18,000 is proposed, but for the month of March. Yesterday, the Nikkei index held at 17.223,15 points, meaning a mere 6.5 performance since the beginning of the year.

2006 started poorly with Livedoor scandals, this group Internet suspected of having several years hidden losses. It was poorly continued with another scandal, the Fund Murakami, whose founder is suspected of crime of insider and agreement with the pattern of Livedoor, Takafumi Horie. Yoshiaki Murakami, founder of the eponymous group attitude, all the more shocked that it was forged a reputation as a defender of the interests of small shareholders. Shock of these cases was hard felt.

Concern of investors

Of course, the Japanese establishment was not privy to condemn this new generation of businessmen, rather young and trained in American, embodying both the new economy. The impact has been much stronger still small carriers as in small business. The discredit thrown by the scandals has been fleeing investors, including those who are interested in start-ups, leaving them totally destitute.

These events have had earlier made gripper stock machine, which has hardly benefited from momentum of 2005. The necessary consolidation after the strong growth in the previous year, added to the ambient climate quickly led the market down. With the exception of late March, period of company results. Announced profit flows have pushed a time index Nikkei above 17,000 points leading to its highest level, on 7 April, since July 2000, at 17.563,37 points. The rally was short-lived because, three months, from May to July, the Nikkei 225 index remained in the area of 15,000 points, the relief accruing in the last weeks of the year.

It must be said that the stock market has hardly helped by the economy. Mainly during the second part of the year, household spending remained uncertain for finally to contract significantly in the fall. Export was penalized by the failures of the economy us and yen desperately low. We did so more much to lead to a revision of growth forecasts. A third quarter (July-September) less good than expected was enough to bring GDP growth forecast to 0.8 in 2006 compared to the initially planned 2. Curiously, it is time that chooses the stock market to use colors.

It is the paradox that has dominated the year, and more specifically the last few weeks. Investors ignored the short-term uncertainties and preferred to focus on isolated elements such as the excellent industrial production in October led by automakers and electronics. The index has almost blurred the debate on the end or not, deflation. Similarly, stakeholders prefer to consider the roots of Japanese growth, still good despite a slow pace. No doubt, return small investors leaves, he also, augurer of better days in 2007. And why not hope that the 18,000 points threshold is crossed in March.